Hitting the one-year mark with your nanny? Congratulations on reaching this important milestone! Over the past year you’ve likely built a strong bond with your nanny, and they have probably become an integral part of your family’s daily life. As you approach this “Nanny-versary”, it’s a great time to show your appreciation and set the stage for continued success in your working relationship.

At the one-year mark, we recommend putting a refreshed contract in place that includes any necessary updates. This is a great opportunity to reflect on what’s working well and also make any needed adjustments to better support both the nanny and your family. You might revise the schedule, clarify expectations around duties, or update the sick leave or vacation policy to reflect the current arrangement or plans for the coming year. If your nanny’s role has evolved (for example, taking on more household management responsibilities), it’s a good idea to document those changes. It’s also helpful to review any benefits offered, such as a mileage reimbursement (which may have changed), healthcare stipends, or use of a family car to ensure they are clearly outlined. A well-crafted contract serves as an excellent reference point for both parties and helps prevent misunderstandings down the road.

It’s also common at the one-year mark to see a pay increase of 3–5%. This acknowledges your nanny’s contributions and helps keep compensation aligned with rising living costs and industry standards. If there have been significant changes to the job requirements, such as the addition of a child or an increase in household responsibilities, a more significant pay increase may be in order.

Many families choose to offer a bonus as well, though the amount can vary. Some give a bonus equivalent to one week of the nanny’s regular pay, while others provide a smaller cash bonus. Other families opt for a thoughtful gift—such as a spa gift card, a piece of jewelry, or a gift card to a favorite restaurant.

If a cash bonus or gift aren't possible, you might consider offering additional benefits like extra paid time off or a healthcare stipend. A heartfelt card, a framed photo of your children with the nanny, or a piece of artwork your child has created for the nanny can also go a long way to making your nanny feel valued and appreciated. While it’s certainly not required to offer a bonus or a gift, many families find it to be a meaningful gesture that shows appreciation for the nanny’s hard work and dedication over the past year. A little appreciation can go a long way toward building a happy, long-term partnership!

If you have any questions about how to renegotiate a contract, offer a competitive increase in pay, or approach your nanny about changing responsibilities, we’re here to help! Your Happy Nest values staying in contact with families and nannies throughout the course of their employment relationship and will be happy to make specific recommendations based on your family’s situation.

Don’t hesitate to reach out if you have questions for us at hello@yourhappynest.com