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[quote=Anonymous][quote=Anonymous]I think it's very interesting that when a new child is added, all of the nannies here will argue that OF COURSE nanny should get a raise, but when a child no longer needs care, pay stays the same.  I think pay should be per hour, not per child, so I don't advocate lowering the nanny's pay in this instance, but this is just an interesting observation.[/quote]

Your statement is ridiculous.   An hourly rate is based on many different factors, including experience, location, duties and number of children.  Paying strictly by the hour without taking into consideration the other factors I mentioned adds a "McDonalds-like, quantity over quality" quality to the nanny profession.
OP can do whatever she likes because at the end of the day, she is the boss.
Lowering the pay of an employee can definitely save you money.  It also puts added pressure and stress on the employee.
I think we can all agree that nobody can work at their highest level when they're worried about paying the bills.
Lowering your nanny's pay will have one of two effects.
1.  She will continue working for you, while slowly beginning to resent you.  Her quality of work will surely decline.
2.  She will decide to no longer work for you, forcing you to search for a new nanny.
The quality of candidate you want will (in most cases) not be willing to work for a lower rate when a child is in school.
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