How to Approach Giving Your Nanny a Raise and Review (and What’s Typical)

Kara Varnell
May 5
2 min read

Hiring a nanny brings personalized, in-home care to your children—something that’s incredibly valuable. But how do you handle raises and performance reviews once your nanny has been with your family for a while? Many families aren’t sure what’s customary or how to begin the conversation.

Here’s a practical guide to help you navigate annual reviews and compensation increases with confidence and care.

1. Schedule a Formal Review—Yes, Even for a Nanny

Just like in any professional role, a nanny deserves structured feedback and the opportunity to grow. A yearly review (or bi-annual, depending on your preference) gives you both a chance to reflect on what’s working and what could improve.

Tips:

Let your nanny know in advance when the review will happen.
Set aside time when the kids are not present.
Prepare notes on strengths and areas for growth.
Ask for their feedback too—nannying is a relationship, not a one-way street.

2. Decide on a Raise—What’s Typical?

Raises are a key part of retaining quality caregivers. Most families offer raises on an annual basis, though sometimes sooner, depending on performance, responsibilities added, or cost-of-living changes.

Typical Raise Amounts:

Certain families provide a pay increase of approximately $1 to $2 per hour while maintaining all other benefits unchanged.
Certain families opt to introduce a health care stipend or enhance an existing one.
An alternative approach is to offer additional paid time off instead of increased monetary compensation.
Some families opt for a combination of additional paid time off and a modest salary increase.

Also Consider:

Has your nanny taken on additional children?
Are they working more hours?
Have duties shifted (e.g., added household tasks)?

Ultimately, there is no specific amount you are required to offer; however, it is important to ensure your nanny feels appreciated and valued, to foster a long-term relationship with your family.

3. Communicate Clearly and Thoughtfully

Approach the raise as part of the review—not as an afterthought. Express appreciation, be clear about your expectations moving forward, and outline what’s changing.

Sample Script:

“We’re so grateful for the love and care you give to our children. You’ve become such an important part of our family. As part of our annual review, we’d like to increase your hourly rate from $X to $Y starting on [date], in recognition of your hard work and commitment.”

If you’re not able to offer a raise right away, be honest—but do set expectations for when one may be possible, or consider offering a bonus or additional paid time off as a gesture of appreciation.

4. Put It in Writing

After the conversation, follow up with a written summary of the new rate, start date, and any role adjustments. This protects both you and your nanny and ensures everyone’s on the same page.

5. Build a Stronger Relationship

Approaching a raise and review with professionalism and empathy shows your nanny that you value them—not just as an employee, but as a person. That kind of trust leads to longevity, loyalty, and most importantly, a happy home environment for your children.

Need help with review templates or a personalized compensation evaluation? At Select Sitters, we’re happy to support families through every stage of their nanny relationship.