While the average Christmas bonus is expected to increase by 8.3% this year to £788, just one in five employees are expecting to receive one, according to research by The Global Payroll Association (GPA).
Its survey of 2,320 British office workers also found that while almost half (46%) have worked for their current organisation for more than a decade, just 21% of this group are expecting a Christmas bonus.
Of those who are, only 14% said it was contractual, while 64% feel that the sum gifted is sufficient. The most common type of bonus paid is a flat figure payment, with gift cards and a percentage of an employee’s salary being the second and third most common. Other popular forms of Christmas bonuses include a hamper, a profit share payment, and additional holiday days over Christmas or the coming year.
The GPA also analysed the latest Office for National Statistics’ (ONS) earnings data, to find that the average person in Britain earns £38,413 per year. With a Christmas bonus estimated to sit at 2% of earnings, the average person should expect to take home an additional £768.26. This figure has increased by 8% in the last year and by 40% in the last decade.
Melanie Pizzey, chief executive officer and founder of the Global Payroll Association, said: “Christmas is a time for giving and most workplaces will try and show their appreciation to employees in one form or another. For some, this means a nice boost to their monthly pay cheque although a Christmas bonus isn’t as common as you might think, with just one in five workers expecting to receive one this year.
“This Christmas is likely to be tougher than last given the government’s changes to national insurance, with many already struggling as a result of this tax hike. Whatever the case may be, spare a thought for the hard-working payroll professionals within [an] organisation, who will be working tirelessly to ensure that any additional bonuses are paid and often this side of Christmas rather than for the end of month.”
