When and How to Give a Nanny a Raise

Raises are part of keeping a great professional. Handled well, they cost less than turnover and buy years of loyalty.

A raise is one of the clearest ways a family signals that it values the person caring for its children, and households that handle raises thoughtfully keep their nannies far longer than those that never revisit pay. Yet many families are unsure when a raise is due or how to approach it. The principles are simple.

On timing, an annual review of compensation is the sensible baseline. Most thoughtful families revisit a nanny's pay once a year, typically around the anniversary of the hire, both to keep pace with the rising cost of living and to recognize another year of growing experience and value. Beyond the annual rhythm, certain moments naturally warrant a raise: a meaningful expansion of the role or responsibilities, a new child added to the nanny's care, the assumption of additional duties, or simply a professional who has become indispensable and whom you wish to retain. A raise that arrives before a valued nanny starts wondering whether they are appreciated is worth far more than one extracted after they have begun looking elsewhere.

On how much, raises should at least keep pace with inflation and the cost of living, so that a nanny is not effectively earning less each year, and should reflect genuine growth in responsibility or value. Where the role has expanded substantially, the raise should reflect the larger job, not a token increase. It is worth being aware of the going market for the role as it has evolved, so that a long-tenured nanny is not falling behind what they could earn elsewhere, which is a common and avoidable cause of losing good people.

On how, handle it with warmth and clarity. A raise is a moment to express genuine appreciation, so frame it as the recognition it is, not a grudging concession. Communicate it clearly, confirm the new figure and its effective date, and update the work agreement accordingly. If you run payroll through a service, adjusting the pay is straightforward. Some families pair a raise with a brief, positive review of the year, which makes the gesture feel considered and mutual.

A note on the relationship: raises and bonuses both play a part. Many families also mark exceptional years, or the holidays, with a bonus, which is a warm acknowledgment distinct from the structural raise that keeps base pay current. Both say the same thing: your work is seen and valued.

The households that keep great nannies treat compensation as a living thing that grows with the relationship, not a number set once and forgotten. We counsel families on keeping pay fair and current over the years, because a well-judged raise is among the least expensive and most effective ways to keep a professional who has become part of the family. At Nannies + more…®, it is simply how we work.