Nanny Holiday/End of Year Bonuses

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It is always the discretion of the employer as to whether or not the nanny gets a bonus at the end of the year. While there is no expected amount that nannies are entitled to as holiday or year-end bonuses, they function as a vital part of the family, so many families find it appropriate to give these bonuses at the end of the year. Here are some tips on what is standard, and also some ideas for your kids to chip in to show their appreciation of the nanny.

Cash bonuses: If this is the route you can afford to take this year, the average year-end bonus is two weeks of pay. For newer nannies who have just recently been hired, many families calculate a day’s pay per each month the nanny has been with them to figure the total amount of the bonus. For example, if your nanny started working with you at the beginning of October, you would want to offer a bonus of three days’ pay at the end of December.

Non-cash bonuses: Maybe your relationship with your nanny is one where you don’t feel comfortable giving cash. Maybe you just want to offer something more personal. Be creative. Instead of cash, you could opt to spend that money on giving a gift of travel to your nanny (airfare, accommodations, paid time off). If you get your nanny a gift card, try to add a personal touch – maybe you know her favorite place to shop, eat, or get a spa treatment, for example. The longer your nanny has been with you, the easier it will be to find that perfect bonus. Just remember, most bonuses and non-cash compensation are taxable income to the employee and should be treated as such.

Gifts from the children: Whether your children are babies or teenagers, there is always a creative way to approach showing your nanny that she is appreciated. While it should go without saying that our employees feel more valued when they are given praise for their hard work frequently, the holiday gift is your child’s opportunity to say, “thank you” in a personalized way. If your child is too young to make their own gift you could always give the nanny a framed photo of the nanny and child together. If your child is older and likes to cook or bake, a nice gift would be a baked good with the recipe attached. Let your child participate in the gift idea and creation; in this way, the gift is personalized and genuine. Amee, a Philadelphia nanny, wrote “The one year my girl made me a necklace from sea shells and stones she collected. It was the best gift ever.”

The rough economy: Perhaps the two-week pay bonus is just not feasible for your family this year. And while it may feel horrible not to be able to show your appreciation in this way, your nanny will need to understand. Bonuses are not mandatory. If you are facing tough economic times this year and don’t anticipate being able to extend a bonus to your nanny, give a card of appreciation and try to arrange a non-monetary bonus, such as an added day or week off if you can plan it. Your nanny will appreciate knowing that by not receiving a bonus, it was not for your lack of wanting to give. A mom with a Sacramento nanny wrote us: “This year I will be giving my nanny extra days off instead of buying gifts. I’m sure she’ll appreciate it just as much.”