How to Determine Your Nanny or Babysitter’s End of Year Tip?

The one thing that parents desire more than anything else after bringing a new bundle of joy into the world is to be able to provide that bundle of joy with all that is necessary for them to flourish and grow. While it’s possible that some parents will decide to take care of their children while staying at home, the reality is that the majority of parents will have to go back to work in order to keep their family afloat financially. And for the millions of parents out there, having access to quality child care is essential.


There are many different models of child care. Others send their children to daycare, while others still hire a nanny or babysitter to come to their home and watch their children. Some parents have friends or family who are able to assist them, while others take their children to daycare.

It is not uncommon for families who fall into the third category to create a close and trusting relationship with the nanny or babysitter. However, it can be challenging to adequately convey the significance of such a relationship. The holiday bonus is one method that might be utilized to accomplish this goal.

Having said that, when parents question themselves, “How much should I tip my nanny at the end of the year?” there is a degree of misunderstanding and doubt that exists. Some nannies and babysitters are recruited on a more casual basis, in which the terms of paying such a tip are not as obvious, despite the fact that there are plenty of services and agencies that supply professional and experienced nannies and babysitters.

In order to get the lowdown on tipping, we discussed the topic with experts in the industry as well as parents who have experience working with nannies. This is a guide about how to utilize a tip at the end of the year to show the people who care for your children that you also care about them.

Why It’s Important to Tip Your Nanny or Babysitter

The first argument, which may appear as self-evident as it is, for why you should offer your nanny or babysitter something extra before the new year is that you care about them. Marla, a mother who lives in New York City, is quoted as saying, “The position of a babysitter comes with a tremendous responsibility.” “We wanted her to understand the significance she played in our lives,”

You want your nanny or babysitter to know that they are appreciated and valued because you trust them to care for your children. This is important not only to cultivate a stronger relationship with them but also to increase the likelihood that they will continue to be dedicated to caring for your young children.

The second reason is a straightforward one: if you employ a professional nanny or babysitter through an agency or a service, it is customary to tip them at the end of the calendar year. According to Michelle LaRowe, Executive Director of Morningside Nannies, a nanny agency located in Houston, Texas, “it is industry norm for parents to offer their nanny with a year-end or holiday bonus,” which is a quote from LaRowe. “Bonuses do matter for nannies because they demonstrate appreciation for the effort and investment the nanny has given to the family over the year and they signal that the nanny has met or exceeded expectations,”

Tipping your nanny or babysitter at the end of the year only results in positive outcomes; nevertheless, failing to do so may have negative repercussions for the professional relationship. According to LaRowe, there is “nothing good that comes from not paying your nanny a year-end bonus.” “When it comes to holiday giving, your nanny is someone you do not want to leave out because of the potential for wounded sentiments as well as the feeling of being unloved and devalued,”

How Much You Should Tip Your Nanny or Babysitter?

Because the relationship between the nanny and the family may be slightly different in each household, there is not necessarily a one-size-fits-all method to choosing how much money to tip the nanny. According to LaRowe, “Traditionally speaking, nannies earn a holiday bonus comparable to one to two weeks’ wages,” and this is something that is given to them every year. However, the amount of a bonus can be affected by a variety of factors, including a family’s financial situation, the length of time a nanny has worked for the family, the location of the family, and the nanny’s place of employment.

In the case of Marla, she decided what to do based on what other families did who were in a like circumstance in terms of the number of children, the location, and the finances. According to her, “we granted an extra week’s pay in addition to a paid week off,” which was provided by the company.

It’s possible that your nanny or babysitter’s private life or situation will come into play at some point. According to Anna Baxter, a resident of Vancouver, British Columbia, “Our nanny was young, having just graduated from college, and she was sort of in-between university and finding out what she wanted to do with her life.” “Our circumstances were advantageous for all parties; we were looking for young, organized, and bright female aid who could drive and assume full responsibility for the children while she was on duty. We were interested in part-time work that was flexible.

And as she was deciding what the next step in her life would be, she was seeking for a flexible way to make money.

Therefore, when December rolled around, Baxter would leave a tip to express her gratitude, and she would generally include a little something more as well. According to her explanation, “we paid her an extra week’s compensation in addition to a beautiful present.” It was a manicure and pedicure for her and a friend one year, table placements and napkins for eight people to kit out her flat the following year.

LaRowe suggests calculating one day’s pay for each month of employment to present as a bonus to your nanny if she has been working for you for less than a year come December. If this is the case, you should offer her a bonus equal to the total amount of the calculated bonus. “The amount you offer often increases the longer a nanny has been with a family,” she adds.

“The longer a nanny has been with a family, the more you give.” It is not uncommon for long-term nannies to be paid an amount that is comparable to one full month’s salary.

Making the Tip Official

If you do have a more casual relationship with your nanny, like Baxter did, you may decide how much of a tip to leave for her at the end of the year when the time comes. However, in the event that this is not the case, LaRowe encourages families to give it some thought in advance. “Many employers of nannies add a reference to a yearly bonus in the written work agreement that they have with their nannies,” she says.

“They also consider this into their budget for providing childcare.”

When it comes to tax time, you and your nanny or babysitter will both benefit tremendously from your having taken these steps. According to LaRowe, “many parents and nannies are unaware that the annual bonus counts as taxable income,” which means that you as the employer and your nanny as the recipient will both be required to pay taxes on it. “Many parents and nannies are unaware that the annual bonus counts as taxable income,” says LaRowe.

In the end, your nanny or babysitter is accountable for one of the most vital aspects of your life, and you want them to understand the significance of this responsibility. If you do, it’s possible that he or she may remain a member of your family for many years to come. According to Baxter, “Our nanny was so amazing, and she was with us for around five years.” “The children continue to text her!”