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[quote=Anonymous]We're in the exact same boat as the OP. We're at just about $21/hour.  We now have our nanny run virtually all of our errands.  Personal assistants run about $25/hour (according to agency websites), so I keep telling myself that our nanny pay isn't too out of whack (but I know it's high).  With our kids in school and our nanny running errands, I now have our weekends back to spend with our kids.  I would sit down with your nanny and make a list of what you are comfortable delegating and what she is comfortable doing and then keep a running list.  I haven't bought or wrapped a single birthday present or picked up/dropped off dry cleaning in a year.  It's great.  I have watches with batteries that work, packages get mailed out, clothing donated, and meals prepared for us.

In terms of the raise aspect -- I just don't feel right now giving a raise, especially since the payroll tax pulled an extra chunk out of our nanny's paycheck.  The raise, however, will be small and much smaller than usual. We also are contemplating offering a quarterly bonus instead of a raise.  In the end, it's still money, but our nanny might prefer to have a real amount of money rather than an extra $10/week or whatever the raise ended up being

You also could offer an IRA benefit in lieu of a raise. Does your nanny have a child?  You could offer to open up a 529 plan -- though still money, I think you could get a tax benefit off of it?  (not sure, you'd have to look into it).

I do think it is appropriate to sit down and have an honest discussion with your nanny, because you are going to keep running into this year after year.  Best to sit down and explain that raises aren't going to be every year and ask for feedback. Your nanny might be worried about her job too.  [/quote]

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