I did give our nanny a raise after a year although she did not ask for it and was appreciative. I also look at other things. She obviously gets paid for holidays but since my husband and I are from abroad and get 30 days a year we're never here on those dates so she has a better holiday agreement than other people do as well coming to 6 full weeks. This means she can also travel to her country for at least 2 weeks if I notify her of our absences in advance which we do. Have always been flexible and if I get home early she leaves early as well! I think it is a give and take and not all is money. She also got a one week Christmas bonus in cash, so net, and in a troubled situation we advanced her money as well so I know that she is happy with us and so are we. Being such a vital part of our life is not all about money.

Hi All,

Its very informative and overwhelming reading all of your comments.
I am not going to add anything new under the sky here but here is the thing:

A pay rise as many highlighted earlier is not compulsory, it depends where you are at financially and emotionally.

To my opinion you do not have to compromise your pleasure for someone else; at the end of the day its not the Salvation Army, its a Job.
If you are happy to do so for X or Y reasons and can afford it without feeling sad deep down, go for it.
If not, threat your nanny as well as you can as she is in charge of your loved ones permanently.

Having said that, it is important to comprehend the reasons behind a pay rise as if its an attempts to keep your nanny with you and out of the job offers, I CAN CONFIRM FOR SURE THAT IT DOES NOT STOP ANYONE FROM LEAVING IF THEY WANT TO DO SO.

I have experienced it myself with one nanny that I particularly appreciated and would always recommend but as she as after something else I couldn't offer she left when time came regardless of feeling, attention gifts,... we were offering her whenever possible.
I am sorry to sound selfish but don't do what you do not want to and vice versa.

Chees.

Like in any job, an annual pay rise for your nanny is not guaranteed...it depends on performance, the financial state of the family, etc etc.
Also, pay rise is only one way to motivate your employee(s) - there are many other ways, such as bonus, gifts, extra holidays, etc - it sounds to me like you are already doing some of these.
If you try to pay your nanny more than you can afford (remember, whatever rise/bonus/presents you give her this year, she will also expect next year), it's potentially bad for both of you as you may not be able to employ her for as long...

FYI - we give our nanny a bonus at the end of the year, very nice presents, pay her overtime, let her leave early whenever we can, pay her in lieu of the holiday days she hasn't taken during the year.

I've just read an article about nannies feeling aggravated about washing up (parents' dishes). It gave me this idea for you. You should speak to her to give and receive feedback about how the job is going. If you find out there is something she is unhappy with (washing up, or otherwise), resolving this may be more important and make her feel more valued than a pay rise would.

I thought I could offer a few suggestions from a nannies point of view....

There's lots of ways to show your apprication that maybe are at a smaller cost too, in the past families I have nannied for have given me extra holidays days than my allowance according to my contract when they are away on holiday paid, given me payed sick days the rare occasion you have to take off, told me to go home early if they arrived home early sometimes, brought home fresh flowers for me, asked the children to draw me a picture or a card, taken me out for a light tea as a family and regularly told me how much they appricate me and the effort I go too. It's lovely working for a family that show you that you are valued and a part of there family and doesn't have to be in the form of lots of money.

Many of the family's I have nannied for have given me a pay rise each year, - usually in the form of a bonus for the past years work (anywhere from £500- £1500) at my yearly review with a lovely personal written thank you card. I personally don't expect a pay rise or a bonus and have never asked a family for an Increase in salary.

I surpose it might also depends what salary your nanny is on and if that is a competitive salary for that job and area and her experience/ qualifications - depending on the age of your nanny she might also be looking to buy a car, a property etc. Nanny rates can go up and Down within a year - so you might not realise that the rate is In fact a very good salary or maybe below market rate now. I know nannies that are on £11- £14 net per hour for 1 family and £12-£15 net per hour for a nannyshare in areas such as clapham, balham and wimbledon park so completely depends.....

I surpose like anyone that works it's lovely to feel rewarded, appricated and mostly that you are good at your job!

Hello,

I run one2one nannies and have also been a nanny myself. From my experience, an annual rise for a good nanny is the courteous thing to do, unless stated in your contract.

Hope you find these comments helpful.

I suggest that you explain the situation regarding your own pay rise (or lack of) to your nanny. If you pay her a fair wage and she enjoys working for you anyway, that may well be enough for her. (This assumes you haven't bought a new car, been on an expensive holiday, and the children's father hasn't had a big promotion etc etc ... The first two things are both things nannies have specifically complained about to me!) Perhaps you could also agree to review her salary at the time your salary is next reviewed? As has already been mentioned a review doesn't mean an automatic rise, but it does mean it should be considered (alongside performance).

Mellomumma ,don't take it personally . I wasn't referring to you but I do agree with decentemployer when she said "I think, between the commons and around, we get confused about what we can and can't afford". I know more than a few families that say that they can't afford this or that (including giving the nanny a rise) but they are still going on expensive holidays/driving a 4x4/shopping at Waitrose etc.. so my point is that if they would look at their outgoings in a realistic way they would find things that they can cut down.

It depends on what is written in the contract (if you have one). An annual review does not mean a pay rise and most contracts state that the employer is under no obligation to give one. It is a choice.

I do give a pay rise; my family can afford it and I appreciate that we are in a comfortable financial situation. I also offer bonuses and nice birthday presents/treats. She is part of our family, she works hard and she has been with us for over two years.

An au pair is NOT a cheap nanny! Their hours are not the same as daily nannies (or full day part time nannies) and their roles are not the same. I do agree that people should be realistic about what they can afford and sometimes a nursery or childminder are more viable financially. Nannyshares are also an option.

Gail makes a good point; not everyone gets a pay rise. Perhaps some on here weren't hit by the financial 'crash'? Anyway, I work and run a family owned business and I haven't given myself a pay rise in years...maybe I should? Seriously, parents don't feel obligated to do something you cannot afford. Do what you can, like making them feel cherished and valued; no money required.

Thanks for your insights. We really do value our nanny and I believe we treat her well, always pay her overtime if I am late back, give her nice presents for Christmas, birthday etc as well and she has lots of extra leave when we're away and just show she is appreciated on a regular basis.

I work in the public sector and haven't had a pay rise in almost five years and my pension contributions have increased each year (so have actually had a pay cut each year). We pay our nanny the current market rate and pay tax and NI on all her earnings (unlike some people I have come across who pay their nannies cash in hand). More than my entire take home salary goes on paying my nanny, so we can't afford to pay much more than we are currently doing, else I might as well give up work altogether.

An au pair isn't an option because my children are too young and do need a professional and we also don't have the space for anyone to live in.

I've checked her contract and it does say we'll review her salary annually, which I'll discuss with my husband first and then see what we decide to do.

wow! Never one to engage in rants on this site but I am rather shocked by some of the most recent comments. Not all of us who live around here value materialist things over our children's wellbeing, nor would be willing to sacrifice childcare experience and qualifications over childcare cost. It is a simple fact for us in our family, we pay well above market rate for an exceptional nanny and would do anything to keep her but unlike the hiding poster of decentemployer and wild assumptions of windmill25 i would not trade for an au pair because my kids need more than supervision nor treasure a luxury handbag over paying my nanny, we can't simply afford more than we have. (Post already a pay rise) Our decision was to have a nanny based on our children and honestly I am very offended of the assumptions that were made. Some of us regardless of cost do get Nannies because it is in our best interest of our children, we are just at capacity on budget. I remember pre kids a great quote from a CEO from my firm. I was happy to shed most of my wage to our nanny and that meant I ate beans on toast for a year, however my kids we're happy and that was a willing sacrifice for me. Don't just assume.

It is a job isn't it? So yes,a yearly pay rise and a bonus is expected.If people can't afford it then they should get an au pair not a nanny.

Yes I absolutely give my nanny an annual pay rise. I couldn't live without her and since she is my employee (all nannies working in your home are) then I want to show her how much I value her. I have got a pay rise from my employer every year except 2008 so I'm not sure why I would treat her differently.

I think, between the commons and around, we get confused about what we can and can't afford. I see the £2,100 per month including tax and NICs that I pay her as a necessity. I don't drive a fancy car, I don't have a second home, I don't wear expensive clothes or have any expensive jewellery apart from my engagement ring.

The trouble around pay rises might happen because you see her pay in terms of a net hourly rate. So yes, an increase from £9 net to 9.50 net is a massive hike when its translated into gross pay. But that's why people should be agreeing an annual gross salary instead of a net one.

Many nannies around London are not English and sadly I think we exploit them because their home countries do not have the same earning opportunities. But they are still people, employed by us and living in an expensive city.

If you like your nanny, give her a pay rise. It does wonders for industrial relations.

No, not necessarily. I have never before this year given a rise and neither has anyone I have spoken to. I have only given my nanny a raise this year as we were paying her under market rate and I felt she had proved herself enough to be paid more of a market rate. (I spoke to nanny agencies and looked on here to see what people were paying, when we took our nanny on we knew it was a bit less than we'd have had to have paid more experienced nannies).

So we have in our contract that we have an annual review with our nanny and she did ask for a payrise the last time we completed this review. Honestly if she hadn't asked for one we would not have considered it and although we did give her a rise when it comes to this year we are very much in the same situation as you and will not be able to afford it anymore. I am of the opinion that I will explain to her that as much as we would love to give her a rise we simply can't. I haven't considered a cash bonus but I do think it is important to show a deserving nanny that you appreciate her in some way. We have given her a late start or early finish on occasion, pay for her to go out for lunch when working so she is not restricted to our home at meal times or coffee and cake with her nanny friends. Like you said nice presents and christmas bonuses are another way.