Nanny yearly wage increases

[ANM07]

Hi

We are approaching that time where I will have to do an end of year pay review for our nanny. We have never had a nanny before so never had to do this previously.
We have been very happy with her and want to reflect that. Can anyone talk in terms of percentage increases in salary we should be looking at? Also do people give end year bonuses?
I got a 5% pay rise this year where I work, is it the norm to pass that on and give nanny a 5% increase as well? I want her to be happy to stay with us but we still have to budget etc so don't want to be over generous either as we budget carefully in order to be able to have her.
She brings her own child to work too if that makes any difference (would assume not). Thanks

My nanny won't be getting anything. She's very nice, and I will apologise for it, but I haven't had a pay rise and I can't afford it. I very much doubt anyone will be giving a 5% pay rise but she will love you for it if you do!

I have had similar internal debates over the last few years.

We have a nanny. She is on maternity leave now, but she has been with us for 4 years. I think she is great (not perfect, but then neither am I), and she works 3 days a week (long days) as do I.

I have had a salary increase each of the years that she has been with us, at around 2 or 3 %, and an annual discretionary bonus (of in the region of 700-900).

I have always passed the percentage increase on to her, and paid her a proportion of the annual bonus. The proportion has been between a third and half. She came to us earning market rate (and for her, this was more than we paid our previous nanny, as our current nanny has more experienced) and so I think she now earns above market rate on an hourly basis. I paid the bonus because she was super reliable, took very few sickness days, was very punctual, and I felt that she deserved a bonus. I did make it clear that she was getting a bonus for those reasons. A bonus is completely discretionary, and so you shouldn't feel that one is compulsory.

I would give whatever you are comfortable about giving, and what you can afford to give. And make it clear why you are giving it. What is the market like for nannies where you live, and are you paying market rate/below/above market rate already? What does your contract say?

I recently received a 4% bonus! It was such a lovely gesture to know that my hard work goes noticed :)

5% pay rise! Wow.

I would pass on what you can and feel she is worth.