What's a reasonable pay rise for a nanny?

[Asleeponasunbeam]

We'd like to offer our nanny more pay as a reflection of her brilliant first year. She is a NWOC and we pay £7.50 p/h at the moment (normal for our area I think). Her DD will be starting school so the nature of the job will be a little different. She will still have her own DD with her for school runs etc, obviously. My DC are 5 and 2.

Very hard to know.

How much can you afford?

How much have things that your nanny pays for gone up? BT are increasing line rental by 6.5%

The job is changing - does that make a difference at all?

How much are similar jobs in the area offering?

Avoid looking at hourly pay... instead look at total cost over a year.

Remember to look at the Gross salary, not Net. Any increase in Net salary can have a dramatic affect on your overall cost. So look at increasing the Gross salary.
Mr Anchovy's PAYE Calculator may be useful to see how a small change in Gross (or Net) salary affects the cost to employer.

I had a 4% increase this year which I am happy with.

My husband and I have had year on year pay cuts for the last few years (both work in NHS ). I've given my nanny a 1.2% increase (so 1% net) as a gesture of goodwill. Whenever the pension comes in the employers contributions will be the pay rise.