Annual nanny raise

Our incredible nanny has been with us for nearly a year, which means a raise is appropriate. We pay her $20/hr, time and a half overtime (9hrs/wk), federal holidays, 5 days sick leave, two weeks vacation, end of the year bonus + we pay her when we're out of town. Our daughter is now 18 months.

How have others determined raises? I want to be fair to her, reward her for her wonderful work, but I need to make sure we can afford her now and in the future. We hope she'll stay with us for another 2+ years.

Thank you!

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RE: Annual nanny raise ()

You have a good package and rate already on offer, so I'd probably do a $1/hour raise, or 5%. That gives you room to continue to offer a similar raise each year.

RE: Annual nanny raise ()

I agree! You've got a really wonderful package already.

RE: Annual nanny raise ()

We give our nanny an annual $1/hr raise. It is 5% which I think is a decent raise and surpasses the annual cost of living increase. Plus, $1 is a more straight-forward amount as opposed to 75 or 90 cents. 

RE: Annual nanny raise ()

Your package seems industry standard, except for the hourly wage, which is low. You don’t mention your location, but in many areas of the Bay, $25-30/hour (net) is the going rate, especially for a child under age two. You also don’t mention your nanny’s education or experience level, but since you are pleased with her work, I would be inclined to recommend an increase of at least 12% this first year. 

RE: Annual nanny raise ()

For a comparison of prevailing nanny rates in the Bay, see BPN's 2018 nanny survey: https://www.berkeleyparentsnetwork.org/recommend/advice/nanny-shares/nanny-pay

RE: Annual nanny raise ()

I would ignore the advice to give a 12% raise. No nanny is netting (or even grossing) $30/hour for taking care of one child. It would probably require about a $45/hour gross to get to a $30 net. To put this in perspective, if a person worked for a company and their salary was calculated based upon a $45/hour gross wage, a full time employee would be paid $90,000/year. This is so far off from market I wonder whether there was a typo in the recommendation.