Ministry of Defence (MOD) employees will receive bonuses worth a total of £30 million for the year 2011-12, down from £43 million for the previous year.
The performance-related bonus, which was introduced by the former Labour government, will be paid out to 96% of employees.
The average bonus for junior staff stands at £430, with some receiving £860. Senior staff receive larger payments.
A spokesperson for the MOD, said: “We intend to get this figure down to 10-20% in the future. This is the start of drawing it down.”