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!
Jun 26, 2019
Parent Replies
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.
I agree! You've got a really wonderful package already.
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.
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.
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
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.