Nanny Holiday Bonuses and Gifts

Each year, we get numerous requests from clients and the media asking about Christmas and year end bonuses. We’ve put together this information that answers the most common questions.

It is industry standard for parents to provide their nanny with a year end or holiday bonus.

In fact, many nanny employers factor this into their childcare budget and include reference to an annual bonus in their written work agreement with their nanny.

Traditionally speaking, nannies receive a holiday bonus equivalent to one to two week’s wages.

Things like experience, how long a nanny has been with the family, geographical location and what a family can truly afford can influence how much a bonus is.

This amount typically increases the longer a nanny has been with a family, with long-term nannies receiving as much as what is equivalent to one month’s wages.

For nannies who are new to a family, calculating one day’s pay for each month of employment is a standard approach.

While parents and nannies may be familiar with the idea of year end bonuses, many are not aware that the annual bonus counts as taxable income.

In a recent GTM survey, 52% of respondents listed Annual Bonus as one of the top benefits for nannies.

For nannies, bonuses do matter, as they indicate the nanny has successfully met or exceeded expectations and they show appreciation for the commitment and investment the nanny has made to the family throughout the year.

Nothing good comes from not giving your nanny a year end bonus. From hurt feelings to feeling unappreciated and undervalued, when it comes to holiday giving, your nanny is someone you don’t want to leave out.

Comments are closed.