Anonymous wrote:I don't think either of you are being unreasonable. You're both within the standard range of raises for a new child. You happen to be on the low side and your nanny happens to be on the high side. It is perfectly within your right to decide your finances cannot handle the higher wage. But it's also your nanny's right to decide it's time for her to move on. It's a tricky situation, good luck navigating it.
+1
Just tell her what you told us - that you adore her, you think she is worth her weight in gold, but you are completely stretched and can't afford to pay her more than X but you don't want to lose her. You can then,
if you want, ask her if more PTO/a contribution to her healthcare coverage/whatever you might want to offer would help.
I will say that nannies getting raises for additional children is entirely an American phenomenon - this doesn't happen in other countries. However, your nanny may feel that she's been underpaid for a while and the raise she's requested will put her where she feels she needs to/ought to be. Or she might just be trying to milk you for more money - we don't know her, we can't really tell. But you can only do what you can do, and you are certainly not underpaying in terms of market rate so even if you did lose this nanny, you'd be able to get another excellent one without needing to up your offer.