I am going back to work in August after mat leave and will be leaving our nanny (who has stayed on while I'm off work, an amazing luxury I know) in charge of two DC aged 1 and 2.5. She will have been with us 18 months by then. At our annual review she asked for a pay rise when I go to work - she accepted she wasn't getting one until then as I am unpaid at the moment. I agreed in principle and said I would have a chat to DH and do some sums.
I know that pay rises for second children aren't strictly necessary, but we both think she's great and deserves all the money we can throw at her. Equally though we won't be able to do a big pay rise every year especially once we need to do a pension too. I'm considering putting DS in nursery for half to one day a week to give her a bit of a break and time with DD, so that's an additional cost. So what is reasonable please to say "we love you and you deserve this, but we may not be able to afford a big rise or bonus every year so don't assume this'll be the case always". She's currently on the gross equivalent of £10ph net and we gave her 4 weeks' salary as xmas bonus (London zone 2 and she has 20 years' experience). I was thinking 50p per hour, rounded up to nearest £100 when we work out gross total. Does this seem fair? Thanks in advance.
I had a nanny on £10 per hour net, she arrived one day after about a year and told me that the local going rate was now £12 per hour net! Unsurprisingly she didn't get a net pay rise of 20%, I offered 1% gross. I work in the NHS and have had a 7% increase in my pay over the last 10 years so I think large amounts are unreasonable to expect especially with the pension looming.
4 weeks salary as a bonus is pretty nice for any employee.
I think it is worth setting out the bonus you are proposing but in the context of her overall package, holiday entitlement etc once the pension requirement kicks in if that makes sense ?
Ultimately that's what you can afford and something has got to give. She may prefer to get the 4 weeks bonus into her salary [as it then becomes pensionable income] assuming she paid tax on it in the first place.
If she didn't [ie it was cash in hand] then it's worth pointing out that it's an unusually high bonus.
Finally, if you are in relatively central London and the local going rate is indeed £12 net or close to it, you need to consider if it's worth losing her over it.
Your son will be entitled to free 15 hours in the term after he turns 3. He can easily wait until then if it means the financial difference between keeping her or not? Assuming you will send him to a nursery that will accept the govt subsidy admittedly.