JCB’s UK employees will share a Christmas bonus pot worth £2.5 million and will receive a 3% pay rise.

Around 5,000 staff at factories in Derbyshire, Staffordshire and Wrexham will receive a £500 Christmas bonus.

From 1 January 2013, all UK employees will also receive a pay increase linked to November’s Retail Prices Index (RPI), which was set at 3%.

Anthony Bamford, chairman at JCB, said: “JCB has performed well in 2012. We had a strong start to the year, although it has become a lot tougher in recent months, but overall it’s been a good year.

“I’m delighted we’re able to award another Christmas bonus this year as a thank you for everyone’s hard work and commitment during 2012.”