Twin Cities Nanny Holiday Bonus Guide: The Professional Standard
- Rachel Tepley
- Dec 11, 2025
- 8 min read
Updated: Dec 16, 2025
Our comprehensive guide on the nanny holiday bonus covers everything families need to know about giving a holiday bonus for your nanny in the Twin Cities, including best practices, recommended amounts, and creative tips for showing appreciation during the festive season.
There are so many people who keep a busy family’s life moving and fulfilled, from your child’s teacher to your delivery person. But, few are as indispensable as a dedicated nanny.
Yet surprisingly, many caretakers in Minnesota don’t receive a holiday bonus or end-of-year monetary gift. This often happens because families are simply unaware that providing a bonus is the established industry standard for professional caregivers. Showing your appreciation with an end-of-year holiday bonus for your nanny is not only a kind gesture, but also an opportunity to recognize the dedication, care, and energy your nanny invests every day.
By making holiday bonuses a thoughtful tradition (similar to celebrating Nanny Appreciation Week), you can foster a positive work environment and strengthen your relationship. This gesture is crucial for employee retention, helps your nanny feel valued as part of the family team (not just "the help"), and is an investment that directly benefits the stability and happiness of your children.
We know that deciding on a nanny holiday bonus can feel tricky, so Nurturing Nannies created this comprehensive guide to help you navigate this season with confidence and ease.
Not sure what’s standard in your area? Our team can help you navigate market-specific rates and best practices. Email us at info@nurturingnannies.us today!
Defining the Holiday Bonus: How It Differs From Regular Pay
To properly give your nanny a holiday bonus, we think it’s important to first clarify what a bonus truly is.
What's a Holiday Bonus?
A holiday bonus is an additional amount of money given to someone as a gift or reward for their services. It is not a regular part of their pay and it’s usually given during special occasions such as the holidays or at the end of the year.
Note on Industry Standard: When we refer to "Industry Standard," we mean the prevailing, widely accepted compensation and employment practices used by professional household employers. Our guidance is aligned with the best practices recommended by national organizations such as the International Nanny Association (INA) and the Association of Premier Nanny Agencies (APNA). These standards are professional norms for attracting and retaining high-quality caregivers, but they are not the same as legal mandates.
Cultural Variances to Be Aware Of
When it comes to giving bonuses, customs and traditions can vary. In some countries, it’s customary to give a bonus equivalent to one month’s salary at the end of the year. This cultural context is something to be aware of when hiring a professional nanny.
For Minnesota Families: Many parts of the world operate under a legal or cultural tradition called "13th Month Pay," where employees are accustomed to receiving a full extra month's salary at the end of the year. While the U.S. industry standard is typically one to two weeks' pay, if your nanny comes from a background where a month's pay is the norm, and your contract simply says "bonus," they may have an expectation that differs significantly from your plan. By being aware of this, you ensure your employment contract clearly specifies the bonus amount, preventing misunderstanding and fostering clear, professional communication from day one.
Legal Considerations
It’s essential to note that a nanny holiday bonus is not a legal requirement. It is entirely at the discretion of the employer. However, some employment contracts may include bonuses as part of the compensation package (making them non-discretionary). In such cases, the employer is legally obligated to adhere to any agreed-upon terms, making clear communication in the written contract absolutely crucial. But despite it not being a legal obligation, a holiday bonus is still a meaningful gesture that can go a long way in fostering a positive and mutually respectful employer-employee relationship..
Recommended Rates for a Nanny Holiday Bonus: Twin Cities
While there is no one-size-fits-all formulation, the amount of a nanny bonus is very market specific. For the Twin Cities area, according to the industry standard Nurturing Nannies advises families to adhere to the following professional guidelines, based on gross weekly pay:
Nanny Tenure with the Family | Recommended Cash Bonus |
Less than 1 Year | One week's pay |
1 Year or More | Two weeks' pay |
2+ Years (Exceptional Loyalty) | Half a month's to a full month's pay |
We've found that families in higher-paying regions like Blaine, Minneapolis, Minnetonka, Eden Prarie, Edina, Hopkins, Maple Grove, Plymouth, Rochester, Saint Paul, and Woodbury often exceed the standard. At the end of the day, the amount you give is a personal decision for your family.
Factors to Consider When Deciding How Much to Give
Determining a bonus amount is not an exact science. What really drives the bonus are things like tenure, location, responsibilities, and performance. Below are a few things to consider:
How Long Your Nanny Has Been With Your Family: The longer the tenure, the higher the bonus should be, recognizing loyalty and valuable contributions.
Your Financial Situation: It’s essential to consider your own family’s financial means and budget accordingly. The thought and gesture are ultimately more important than the exact dollar amount.
Your Nanny’s Job Performance: If your nanny has exceeded expectations, taken on extra duties, or handled challenging situations with grace, the bonus should reflect this exceptional work.
Why It’s Important to Give a Nanny Holiday Bonus
Your nanny is there for you every single day. They shoulder the responsibility of nurturing your children, making sure their days are filled with learning, laughter, and love. They see how the intricate details of your family work and what it takes to make your household work.
Nannies are not just caregivers; they play a crucial role in your children’s emotional and social development too, cheering them on as they take their first steps or utter their first words.
A well-rewarded nanny is a happy nanny, and a happy nanny means a happy home. When we show our nannies how much we appreciate them, especially with a thoughtful holiday bonus, you are investing in their happiness and job satisfaction.
Creative Ways to Give Your Nanny Their Holiday Bonus
So, you’ve decided on the bonus amount, but how about adding a bit of sparkle? While there’s nothing wrong with just a check or direct deposit (cash is always appreciated!), a well-thought-out gift or gesture can add a personal touch that truly warms the heart.
Heartfelt Card & Art: Always include a handwritten thank you note from the parents and a drawing, craft, or scribble from the children. These keepsakes are often treasured more than anything.
Extra Paid Time Off (PTO): A valuable, non-monetary gift! Offer an extra paid day off in the new year. Pro-Tip: Discuss this with your nanny in advance rather than springing last-minute PTO on them.
Relaxation or Experience Gifts: Treat your nanny to a well-deserved break.
A gift certificate for a spa day (massage, manicure, or facial).
Tickets to a concert, theater show, or sporting event (especially if you know their interests).
A Movie Night gift basket with theater tickets, or a DoorDash/takeout gift card for a night in.
Personalized Gift Cards: Find out what their hobbies are! Personalize your gift card to align with what they really enjoy (e.g., coffee, books, a local Twin Cities restaurant, or a favorite boutique).
Photo Keepsake: A professional or framed photo shoot with the children is a lasting, high-value gift they can proudly display.
Family Inclusion: Consider inviting them to a low-key family dinner or including them in a small holiday gift exchange (if appropriate for your family dynamic).
The True Takeaway: These gestures show your nanny that they are valued and appreciated as a member of the family's vital support team, not just as an employee.
Key Considerations for Implementation
For families in Minneapolis and nationwide, careful planning ensures the gesture is received well:
Timing and Communication
When to Give It: We suggest giving your nanny their holiday bonus in early to mid-December so they can use the funds for holiday planning. Giving the bonus up to the last workday before the New Year is still standard practice and deeply appreciated.
If You Must Forgo a Bonus: If you must forgo a bonus, it is essential to discuss this well in advance (early November is ideal) to set clear expectations and avoid disappointment. Give a respectful, direct, and honest explanation, and at the very least, provide a heartfelt card showing your appreciation.
Legal and Payroll Considerations
Tax Implications: The bonus is considered supplemental wages. As of 2025, if you pay your nanny $2,800 or more annually, you are required to report and pay the relevant federal "nanny taxes" (Social Security and Medicare). Minnesota also requires employers to manage State Unemployment Tax (SUTA) and comply with laws like Workers' Compensation and Earned Sick and Safe Time (ESST). Nurturing Nannies always recommends using a payroll service (like Poppins Payroll) to ensure correct withholding and legal compliance for this extra payment.
The Full Compliance Picture: To understand all of your legal and tax responsibilities as a Minnesota household employer, including ESST and the upcoming Paid Family and Medical Leave (PFML) mandates, please consult our full guide: HERE
Policy: Have a clear, written policy outlining eligibility and how the bonus is calculated. Ideally, the terms for bonus eligibility should be established in your initial employment contract. If a bonus is written into the employment contract, you are legally obligated to adhere to those terms.
Nanny Holiday Bonus FAQs
Do I need to give a bonus to my part-time nanny?
Yes, a bonus is the thoughtful and professional thing to do, even for part-time positions. While the amount may be prorated, an end-of-year gesture is key for showing appreciation and helping with long-term retention.
Can the bonus be given as extra paid time off instead of cash?
While extra PTO is a wonderful supplement and highly valued, it should not fully replace the financial bonus. Cash is the industry standard for an "end-of-year bonus" and ensures your nanny has funds for their own needs.
What if I don't know how much to give?
Determining a bonus amount is not an exact science. If you need specific guidance on market rates or help figuring out what is appropriate for your unique situation, email info@nurturingnannies.us with the subject line Holiday Bonus and we’ll help you out, free of charge!
Nurturing Nannies Endorses: It's the Thought That Counts
A nanny holiday bonus is a reflection of gratitude, trust, and the invaluable role your caregiver plays in your family’s life.
Local Market Insight: The Minnesota job market remains very competitive, with strong demand for skilled professionals. Offering a fair and generous holiday bonus is one of the most effective strategies for securing your excellent caregiver for the year ahead. We know the holiday bonus is just one piece of the puzzle. To truly ensure long-term satisfaction and retain the high-caliber talent in the Twin Cities, consistency, benefits (like PTO and healthcare stipends), and year-round recognition are essential. We coach all of our clients through this, so if the thought of this stresses you out feel free to reach out to us, we can take that stress off your shoulders.
Important Disclaimer
Disclaimer: The information provided in this guide is for general informational purposes only and reflects industry best practices recommended by Nurturing Nannies. It is not intended as, and should not be relied upon for, legal, tax, or financial advice. Always consult with a qualified professional (such as a payroll service, tax advisor, or employment attorney) regarding your specific household employment obligations in Minnesota.
Honor your nanny’s hard work with confidence. Need specific guidance on market rates or help figuring out what's appropriate for your unique situation?
Connect with Nurturing Nannies today for personalized guidance.
Payroll Partnership (Our Recommendation for DIY Families)
We know that not all families choose to work with an employment agency like ours. However, Nurturing Nannies has a deep passion for ensuring nannies are paid legally and that families don't get penalized or "screwed over" in the complex tax process.
Therefore, for families taking the DIY employment approach, we confidently recommend:
Poppins Payroll - We wouldn't recommend anyone we don't personally trust. Poppins is our go-to for simple, stress-free compliance. Use promo code NURTURING for your first two months free, then just $49/month after that. No contracts, just straightforward payroll and great customer support.
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