Hi again, Jenny and thanks for your reply.
First, I really doubt that someone else pays their cleaning lady $200 for only a couple of hours; she may have mentioned this to your friend, as a way for it to get back to you so you would consider giving her a raise.
Your house is quite large and if she splits up the work and gets the whole house done, plus the ironing, within the three days, I do think the $100 is quite fair, along with the other 'perks' of the job (which are added into the salary), which include your generous end of year bonus, paying her overtime, if she stays longer than usual, paying her in cash, and driving her home, plus paying for her transportation to get to you. However, if she feels she deserves a raise and you are very pleased with her work, plus you've had a good working relationship/built trust for 5 years, it might be worth it to offer her a raise of between $25-$50 per day, in order not to lose her.
If you pay her by check and give her a 1099, I don't think she will be pleased and may tell you she can't continue working for you with that arrangement.
If it's important to you to keep her on, because you are very pleased with her work and do not want to go through the hassle of looking for another cleaning lady who you would have to 'break in' to how you like things done, and make sure you can trust, it would be worth it to give her a small raise, to keep her happy and not lose her. If you have been paying her the same amount per day for 5 years, and the cost of living has increased, she may feel she's entitled to a raise, and if she were working in another field, she probably would have gotten a raise within the 5 years.
So, if you feel you really want to keep her on, it would be silly to be 'penny-wise and pound-foolish', as the saying goes, and I would offer her the raise. The amount is up to you.
I hope everything works out well and please keep me posted on what you decide to do.
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