Your nanny may feel like a member of your family, but technically, they’re a household employee who, at some point, deserves a raise. But what’s the protocol around these pay increases? Is a nanny raise in order every year? And if so, how much?<\/p>
“Like in most workplaces, at the end of each year of service, it is customary for nannies to have an annual review and contract renegotiation,” explains Michelle LaRowe, lead educator at Global Nanny Training<\/a>. “In addition to a cost of living increase, a performance-based merit increase should also be considered. While the cost of living increase can vary year to year, a good rule of thumb is a 2-4% cost of living increase, plus a merit raise of 3-7%, leaving most nannies with a 5-10% annual increase.”<\/p> Wondering if and when you should give your nanny a raise (and how much)? Here, nanny pros and parents offer insight.<\/p> In most situations, a nanny raise every year is standard. “Many employers choose to give a raise on an annual basis, as part of a performance review process,” says Kristen Szapka, founder and owner of A Nanny Match<\/a> nanny agency in New York City and Boston. Szapka also notes that “reviewing compensation at least once a year can help ensure that both parties feel the arrangement is fair and equitable.” <\/p> “Reviewing compensation at least once a year can help ensure that both parties feel the arrangement is fair and equitable.” <\/p>— Kristen Szapka, nanny agency owner<\/cite><\/blockquote><\/figure> During a performance review, Szapka says to consider “if the nanny has been doing an exceptional job and has gone above and beyond, a raise is a great way to acknowledge this.<\/p> Agreeing with LaRowe, Szapka notes that the average nanny raise per year should be “5-10% of their hourly pay<\/a>,” which is based on both merit (performance), as well as the cost-of-living adjustment (COLA)<\/a>. The former, Szapka says, acknowledges if a nanny has gone “above and beyond,” and the latter keeps up with inflation and “helps the nanny maintain the same standard of living.”<\/p> It’s also worth noting that your location comes into play here, as well. Says Szapka: “In New York City, the cost of living has increased significantly over the past couple of years, and we’ve seen the average hourly wage increase by about $5 or more since 2020-2021.” <\/p> Lora Brawley, 30-year nanny veteran and consultant and trainer at Nanny Care Hub<\/a> in Federal Way, Washington, concurs with Szapka, noting that, in the last year, she’s seen an increase in standard COLA raises, due to the economy. <\/p> “Instead of a 2-4% COLA raise, I’m seeing 3-6%,” she says, adding that most nannies get a COLA raise and a performance raise at the same time, so it feels higher overall. “The nannies who are hitting their ceiling with performance raises are still getting a COLA raise,” she notes. <\/p>Key takeaways<\/h3>
When should I give my nanny a raise?<\/h2>
1. A year has passed<\/h3>