Holiday & Year-End Bonus Statistics 2026: 10% Have a Holiday Bonus, Not 60%

51%
have access to any nonproduction bonus (BLS, March 2026)
15%
have access to an end-of-year bonus (BLS, March 2026)
10%
have access to a holiday bonus (BLS, all workers, March 2026)
$1.33
bonus cost per hour worked, 2.8% of total compensation

Every December the same claim circulates: most employers give a holiday bonus. The federal data says otherwise. In March 2026, 15% of US private industry workers had access to an end-of-year bonus and 10% of all workers had access to a holiday bonus. Those are access figures โ€” the share of workers whose employer offers the benefit at all โ€” so the share who actually receive one in any given December is lower still.

This page is built on the two federal series that measure bonuses directly: the National Compensation Survey, which asks whether a benefit is available, and Employer Costs for Employee Compensation, which measures what employers actually spend. Every figure carries its reference period. The five metrics we derived ourselves are labelled, with their arithmetic shown, so you can recompute them with your own assumptions.

Year-end bonus benchmark cheat sheet

The numbers a compensation, HR or finance team needs to answer "is our bonus normal?" in one table. Everything here is sourced in section 13.

Benchmark2026 figureSource and reference period
Access to any nonproduction bonus (private industry)51%BLS NCS, March 2026
Access to an end-of-year bonus (private industry)15%BLS NCS, March 2026
Access to a holiday bonus (all workers)10%BLS NCS, March 2026
Access to a referral bonus (all workers)10%BLS NCS, March 2026
Access to cash profit sharing (private industry)6%BLS NCS, March 2026
Access to payment in lieu of benefits (private industry)4%BLS NCS, March 2026
Access to a longevity bonus (private industry)3%BLS NCS, March 2026
Employer cost, nonproduction bonuses (private industry)$1.33/hour, 2.8% of total compensationBLS ECEC, June 2026
Employer cost, all supplemental pay (private industry)$1.88/hour, 4.0%BLS ECEC, June 2026
Total compensation (private industry)$46.89/hourBLS ECEC, June 2026
Bonus access, management and professional occupations61%BLS NCS, March 2026
Bonus access, service occupations37%BLS NCS, March 2026
2026 salary increase budget, for context3.4% average, 3.5% medianConference Board, 460+ US compensation leaders, published September 2025
Federal flat withholding rate on a cash bonus22%, rising to 37% above $1m cumulativeIRS Publication 15, 2026

1. Who actually gets a year-end bonus

The Bureau of Labor Statistics files every cash payment not tied directly to individual output under one heading: nonproduction bonuses. Within it sit five groups, and within those, the specific bonus types that matter at this time of year. These are the March 2026 access rates โ€” the share of workers whose employer makes the bonus available.

Bonus typeAccess, March 2026BLS categoryCoverage
Any nonproduction bonus51%โ€”Private industry workers
End-of-year bonus15%Performance-based awardPrivate industry workers
Holiday bonus10%Performance-based awardAll workers
Referral bonus10%Employee incentive awardAll workers
Cash profit sharing6%Performance-based awardPrivate industry workers
Payment in lieu of benefits4%OtherPrivate industry workers
Longevity bonus3%Recognition awardPrivate industry workers

Source: BLS, "What types of nonproduction bonuses are available to workers?", reference period March 2026, page last modified 25 September 2026. Note the coverage column. BLS states the holiday and referral figures for all workers and the others for private industry workers, so they are not strictly interchangeable โ€” most write-ups quote all seven as a single series. Hiring, retention, management incentive, attendance, employee recognition, safety, suggestion, union contract signing, birthday and retirement bonuses are also named by BLS without a published access rate.

Access to nonproduction bonuses by type, March 2026

Share of workers whose employer makes the bonus available. Bars drawn to scale against the 51% total.

Any nonproduction bonus
51%
End-of-year bonus
15%
Holiday bonus
10%
Referral bonus
10%
Cash profit sharing
6%
Payment in lieu of benefits
4%
Longevity bonus
3%

Two observations worth carrying into any year-end planning conversation. First, the headline 51% is held up substantially by bonus types that have nothing to do with December โ€” referral bonuses alone are as common as holiday bonuses. Second, the gap between 15% end-of-year access and 10% holiday access is the gap between two different instruments: one pays on the year's results, the other pays because it is December. For every three workers with an end-of-year bonus, two have a holiday bonus.

Roughly half of US private sector workers are employed somewhere that offers no cash bonus of any kind. That is the baseline every "most companies give a holiday bonus" headline should be measured against.

2. The ten-year trend: access is rising, slowly

Access to nonproduction bonuses has climbed steadily since the late 2010s. The series below pulls the comparable March readings BLS has published.

March ofAny nonproduction bonusEnd-of-year bonusHoliday bonus
201738%11%6%
202241%12%โ€”
202448%12%7%
202550%13%โ€”
202651%15%10%

Sources: BLS Economics Daily articles and benefits fact sheets for each reference year. The 2017, 2022, 2024 and 2025 figures are private industry workers. The 2026 holiday figure is stated by BLS for all workers, so the 7%-to-10% step is not a clean like-for-like comparison and part of it may be coverage rather than change. NCS access estimates carry sampling error: treat single-year moves of a point or two as noise and the direction over a decade as the signal. Dashes mark years where BLS did not publish a separate figure for that type.

The decade-long direction is clear. Bonus access is up 13 points since 2017 and end-of-year access up 4 points. That runs against the story told in most December coverage, which reports bonuses as vanishing. Both can be true, and section 8 explains why: the share of employers who have a bonus programme is growing while the share advertising one to new hires is shrinking fast.

3. What bonuses actually cost employers

Access tells you whether a programme exists. The Employer Costs for Employee Compensation series tells you what it costs. In June 2026, private industry employers spent $1.33 per hour worked on nonproduction bonuses โ€” 2.8% of total compensation of $46.89 an hour.

Component, private industryCost per hour workedShare of total compensation
Total compensation$46.89100.0%
Wages and salaries$32.8270.0%
Total benefits$14.0730.0%
Supplemental pay (all)$1.884.0%
Nonproduction bonuses$1.332.8%

Source: BLS, Employer Costs for Employee Compensation, June 2026 reference period, released 9 September 2026 (USDL-26-1494), Table 1. Nonproduction bonuses are a component of supplemental pay, which also contains overtime and premium pay and shift differentials. For context the same release puts civilian workers at $49.46 per hour with nonproduction bonuses at $1.20, or 2.4%.

One ratio from that table is worth stating on its own, because it reframes what supplemental pay is. Nonproduction bonuses are 70.7% of all supplemental pay ($1.33 of $1.88). Overtime, premium and shift pay together are the minority of it. "Supplemental pay" is, in the main, bonuses.

4. Bonus cost is outgrowing pay itself

The cost series has a longer memory than the access series, and it tells a sharper story. Nonproduction bonus cost per hour has risen much faster than total compensation since the end of 2021.

Reference periodNonproduction bonuses, $/hourShare of total compensationTotal compensation, $/hour
December 2021$0.892.3%$38.07
March 2024$1.26โ€”โ€”
June 2026$1.332.8%$46.89
Change, Dec 2021 to Jun 2026+49.4%+0.5 points+23.2%

Sources: BLS ECEC releases for December 2021 (released 18 March 2022) and June 2026 (released 9 September 2026), private industry workers, Table 1; the March 2024 figure is as stated in the BLS Economics Daily article on end-of-year and holiday bonuses, published 18 December 2024. Nominal dollars, not inflation-adjusted. BLS has also announced that workers' compensation costs leave the ECEC from the December 2026 reference period, so later total-compensation figures will not be directly comparable with these.

5. Who gets left out, and the gap that widened

BLS publishes bonus access by occupational group, and the spread is the widest single disparity in the dataset. In March 2026, access ran from 37% in service occupations to 61% in management, professional and related occupations.

Nonproduction bonus access by occupational group, private industry

The two groups BLS states explicitly in its March 2025 and March 2026 releases.

Management & professional, 2026
61%
Management & professional, 2025
58%
Service occupations, 2026
37%
Service occupations, 2025
37%

6. The industry table: construction beats tech on holiday bonuses

The most useful breakdown BLS has published on this topic splits end-of-year and holiday bonuses by industry. It is March 2024 data โ€” the most recent industry detail available for both bonus types โ€” and the ranking inverts between the two columns in a way that nothing else in the dataset does.

IndustryEnd-of-year bonusHoliday bonusWhich is more common
All private industry workers12%7%End-of-year
Information22%4%End-of-year, by 5.5ร—
Wholesale trade21%9%End-of-year
Construction19%14%End-of-year, narrowly
Manufacturing17%10%End-of-year
Hospitals6%2%End-of-year
Leisure and hospitality5%6%Holiday
Retail trade4%9%Holiday, by 2.3ร—
Transportation and warehousing4%5%Holiday

Source: BLS, The Economics Daily, "Access to end-of-year and holiday bonuses for private industry workers in 2024", published 18 December 2024, March 2024 reference period, all occupations. Ratios in the final column are ours.

Read the two columns together and the pattern is about what kind of bonus an industry can promise. Industries with measurable annual results and salaried staff โ€” information, wholesale, manufacturing โ€” pay on the year. Industries whose December is their busiest month โ€” retail, leisure and hospitality, transportation and warehousing โ€” pay for the holiday instead, and in retail the holiday bonus is more than twice as common as the end-of-year bonus. The three sectors most likely to be working on 24 December are the three where the year-end bonus has effectively been replaced by a holiday one.

Construction is the outlier. At 14%, construction workers are 3.5ร— more likely to have access to a holiday bonus than information workers at 4%, and twice as likely as the private sector average. It is the only industry in the table that scores highly on both columns.

7. About that "60% of employers give holiday bonuses" figure

Search for holiday bonus statistics in any December and one number dominates: 60% of employers plan to give a holiday cash bonus. It is worth knowing exactly where it comes from before it goes into a board deck.

8. Bonuses are disappearing from job ads faster than from payrolls

This is the reconciliation between a rising access series and a falling bonus narrative. Employers are keeping their programmes and stopping advertising them.

MeasureLatestComparisonSource
US job postings mentioning a year-end or annual bonus0.74%Down from 1.65% a year earlier โ€” a fall of more than halfIndeed Hiring Lab, as reported December 2025
US job postings offering a signing bonus3.0% (December 2025)5.6% at the August 2022 peak; 1.8% average in 2019Indeed Hiring Lab, February 2026
Signing bonuses, nursing postings8.4% (December 2025)13.5% in December 2024Indeed Hiring Lab, February 2026
Signing bonuses, physician and surgeon postings10.6% (December 2025)11.8% in December 2024Indeed Hiring Lab, February 2026
Share of workers receiving a holiday or annual bonusFalling since 2021About 44% at the 2021 peakADP payroll data, as reported December 2025
One-time discretionary pay (sign-on, retention)Being scaled backParticularly in technology and trade-sensitive sectorsConference Board, 460+ US compensation leaders, published September 2025

The signing bonus series is the cleanest labour-market signal in this dataset, because it is observed behaviour in live job ads rather than a survey: 3.0% of postings in December 2025 against a 5.6% peak in August 2022, still above the 1.8% baseline of 2019. Bonuses used to buy candidates in a tight market are retreating towards pre-pandemic levels while the bonuses written into existing compensation plans are not. The nursing figure โ€” 13.5% to 8.4% in twelve months โ€” is the sharpest single move in the set.

The practical consequence for a year-end programme is that external benchmarks sourced from job ads will understate what your competitors actually pay their existing staff, and surveys of employer intent will overstate it. The access and cost series are the only two that measure the installed base.

9. What a $500 cash bonus is actually worth

Year-end bonus budgets are almost always set in gross dollars and received in net ones. The 2026 federal arithmetic is fixed and public, so there is no excuse for the gap being a surprise in January.

IRS Publication 15 for 2026 keeps the flat withholding rate on supplemental wages โ€” which is what a bonus is โ€” at 22%, rising to 37% on cumulative supplemental wages above $1 million in a calendar year. No other percentage is permitted under the flat-rate method. The alternative is to aggregate the bonus with regular wages and withhold as though it were one payment. Either way, Social Security and Medicare still apply.

That 1.53ร— multiplier is the single most useful number in this entire page for a December budget conversation, and it is the reason the cash-versus-non-cash question is a finance question rather than a sentimental one. Outside the US the arithmetic changes completely: several countries have a genuine tax-free allowance for non-cash gifts, which a cash bonus cannot use. Our UK trivial benefits and multi-country tax guides work through the thresholds country by country.

10. The December payment that arrives in a recognition vacuum

There is one more number that belongs in a year-end bonus discussion, and it is not a bonus number. As of May 2026, 29% of US employees said they had received recognition or praise for doing good work in the past seven days, and 31% were engaged.

29%
received recognition or praise in the past 7 days (Gallup, May 2026)
31%
of US employees are engaged (Gallup, May 2026)
70.4%
of a $500 cash bonus the employee actually receives
1.53ร—
employer cost to deliver $500 net in cash

Put the two datasets side by side and the structural problem with the December bonus becomes visible. Seven workers in ten go a full week without being recognised for anything, and then one worker in ten receives a payment in December. The bonus is not competing with other bonuses for attention; it is arriving into a near-silence, which is both why it feels significant and why it does so little by itself. A single annual payment cannot carry the weight of a year of unacknowledged work, and the access data says it is not even attempting to for half the workforce.

On the cash-versus-non-cash question specifically, the honest answer is that the research most often cited is thinner than its popularity suggests. The study that circulates most โ€” in which a gift-wrapped water bottle raised a data-entry rate by about 25% while an equivalent cash bonus produced no measurable effect, and in which roughly 80% of participants took the cash when offered the choice โ€” reaches most readers through a Harvard Business Review discussion summarised in a 2014 trade article, not through the primary paper. The finding is interesting and the direction is plausible. It is not a basis for a policy decision on its own.

What the data on this page does support is narrower and more useful. The tax arithmetic in section 9 is fixed and knowable: in the US a cash bonus and a gift card are taxed identically, so there the choice is about delivery and perceived value rather than efficiency. Outside the US the choice is frequently a real financial one, because several jurisdictions exempt modest non-cash gifts and exempt no cash at all. And the frequency question โ€” one payment a year against several smaller moments โ€” is where the recognition evidence actually points. We work through that trade-off in why cash bonuses are losing to digital rewards and points-based versus gift card rewards.

11. Bonus statistics to treat with caution

These figures circulate widely, appear in most year-end bonus articles, and should not be cited as current without the context below. We have kept them out of the body of this page deliberately.

Circulating statisticWhat it actually isWhy it needs a caveat
"60% of employers give holiday bonuses"Employer-intent survey of 1,500 employers and employees, commissioned by a marketing company, reported December 2024Roughly 6ร— the federal access rate; counts companies not workers; field dates unpublished
"The average holiday bonus is $251 to $500"A modal band from the same December 2024 survey, self-reported by employees about the prior yearThere is no federal per-recipient bonus amount. BLS publishes access and employer cost, never an average payout
"27% of employees want cash, 5% want gift cards"Express Employment Professionals polls, published by SHRM in December 2014Twelve years old and still recirculated as current preference data
"78% of companies offer a year-end gift or bonus"Challenger, Gray & Christmas survey of about 100 HR professionals, November 2014, described by its publisher as non-scientificThe firm's 2022 edition found 27% awarding no bonus at all; we could not locate a 2025 or 2026 edition
"44% of workers got a holiday or annual bonus"ADP payroll data for 2021, its peak year, reported in a December 2025 news segmentReached us secondhand; we could not locate a published ADP release stating the series, and 2021 is a peak not a norm
"Year-end bonus mentions in job ads fell from 1.65% to 0.74%"Indeed Hiring Lab figures given in a December 2025 news interviewDirectionally corroborated by Indeed's published signing-bonus series, but not itself a standalone Hiring Lab publication
Any "X% of employees would quit without a bonus"Stated intention in a surveyIntention-to-quit questions consistently overstate actual behaviour and have no observed-turnover equivalent

The pattern across the whole list is one thing: there is no reliable published figure for the average year-end bonus amount in the United States. The federal statistical system measures whether a bonus is available and what bonuses cost employers in aggregate. It does not measure what a typical recipient gets. Every dollar figure in circulation is a survey artifact, and most of them are modal bands from small panels. If you need a per-head number for planning, derive it from your own payroll or from the aggregate cost series in section 3, and label it as a derivation.

12. What the 2026 data means for year-end planning

Four things follow from the numbers above, for anyone setting or defending a year-end budget this quarter.

Benchmark against access, not intent

If you offer any year-end bonus you are already in the minority of employers by workforce weighting. 51% access to any bonus and 15% to an end-of-year bonus are the figures to quote when someone claims the company is behind the market. Survey headlines of 60% are measuring a different thing.

Budget the 1.53ร— gross-up, or stop promising net amounts

A $500 net cash bonus costs $765 fully loaded, and 34.6% of what you spend never reaches the employee. Decide which number you are communicating โ€” gross or net โ€” before the announcement goes out, because the January complaint is always about the gap.

Check your own occupation gap

Nationally the bonus access gap between management and service occupations widened from 21 to 24 points in a single year. Run the same cut on your own population. If your frontline, shift and service staff are outside the programme, the December announcement will land as confirmation of that, not as a reward.

Spread the frequency, not just the amount

29% of employees were recognised in the past week. A single December payment into that silence is expensive and short-lived. The same budget delivered across the year โ€” service milestones, project completions, peer recognition โ€” produces more moments without raising the cost, and it is far easier to attribute.

If the last point is where you want to go, the operational question is delivery: how to issue many small rewards, in many countries, without creating a payroll project each time. That is what our bulk gift card API and bulk gift cards for employees guide cover, and our rewards budget framework works through the per-head arithmetic.

13. Methodology and sources

Every figure on this page carries its source and reference period. Federal establishment data and survey panel data are labelled separately, because they measure different populations and are not interchangeable. The five derived metrics are labelled as ours, with their inputs and assumptions stated. Widely circulated figures we could not trace to a current primary source are listed in section 11 rather than repeated as fact.

  • BLS, National Compensation Survey โ€” "What types of nonproduction bonuses are available to workers?" Reference period March 2026, page last modified 25 September 2026. 51% of private industry workers with access to any nonproduction bonus; end-of-year 15% and cash profit-sharing 6% of private industry workers; holiday 10% and referral 10% of all workers; payment in lieu of benefits 4% private industry and 22% state and local government; longevity 3% private industry and 9% state and local government. An establishment survey weighted to the workforce: it measures whether a benefit is available, not whether it was paid. Source for sections 1, 2 and 3.
  • BLS, Employee Benefits in the United States โ€” March 2026, released 25 September 2026 (USDL-26-1534). Access to nonproduction bonuses among private industry workers ranging from 37% in service occupations to 61% in management, professional and related occupations. The March 2025 edition, released 25 September 2025, gives the comparable range as 37% to 58%, and reported 50% overall access and 13% end-of-year access for private industry workers. Source for section 5 and derived metric 3.
  • BLS, Employer Costs for Employee Compensation โ€” June 2026 reference period, released 9 September 2026 (USDL-26-1494), Table 1. Private industry total compensation $46.89 per hour worked, wages and salaries $32.82 (70.0%), benefits $14.07 (30.0%), supplemental pay $1.88 (4.0%), nonproduction bonuses $1.33 (2.8%); civilian workers $49.46 total and $1.20 nonproduction bonuses (2.4%). The December 2021 release, published 18 March 2022, gives private industry total compensation $38.07, supplemental pay $1.32 (3.5%) and nonproduction bonuses $0.89 (2.3%). BLS has announced that workers' compensation costs are removed from the ECEC from the December 2026 reference period. Source for sections 3 and 4 and derived metrics 1 and 2.
  • BLS, The Economics Daily โ€” "Access to end-of-year and holiday bonuses for private industry workers in 2024", published 18 December 2024, March 2024 reference period. 12% end-of-year and 7% holiday bonus access for private industry workers; nonproduction bonus cost of $1.26 per hour worked in March 2024; the full industry table reproduced in section 6. The companion 2017 article reports 38% overall access with 11% end-of-year and 6% holiday. Source for sections 2 and 6.
  • Indeed Hiring Lab, "Healthcare Hiring Keeps Signing Bonuses Alive in a Cooling Labor Market", published 26 February 2026. 3.0% of US job postings offering a signing bonus in December 2025, against a 5.6% peak in August 2022 and a 1.8% average in 2019; nursing 8.4% down from 13.5% and physicians and surgeons 10.6% down from 11.8% year on year. Observed job-posting data, which describes what employers advertise to candidates, not what they pay existing staff. Source for section 8.
  • Marketplace, "The number of employers offering holiday or annual bonuses is falling", 26 December 2025. The source of the ADP figure of about 44% of workers receiving a holiday or annual bonus in 2021, and of the Indeed Hiring Lab figures on year-end bonus mentions in job postings falling from about 1.65% to about 0.74%. Both reached us through this reporting rather than through a primary publication; flagged accordingly in section 11. Source for section 8.
  • The Conference Board, salary increase budget survey โ€” press release 3 September 2025, 40th annual edition, more than 460 US compensation leaders surveyed 19 May to 20 June. Average projected 2026 salary budget increase of 3.4% with a 3.5% median, level with 2025; one-time discretionary pay such as sign-on and retention bonuses being scaled back, particularly in technology and trade-sensitive sectors, with no percentage attached to that reduction. Source for sections 4 and 8.
  • Gallup, Global Indicator: Employee Engagement โ€” figures as of May 2026. 29% of US employees received recognition or praise for doing good work in the past seven days; 31% of US employees engaged. Source for section 10.
  • IRS Publication 15 (Circular E), Employer's Tax Guide, for use in 2026, with Publication 15-B on fringe benefits. Flat 22% withholding on supplemental wages with no other percentage permitted under that method, and 37% on cumulative supplemental wages above $1 million in a calendar year; the individual rates were permanently extended by P.L. 119-21. Social Security and Medicare apply to bonuses regardless of the withholding method chosen. Source for section 9 and derived metric 5.
  • Agital employer and employee survey โ€” 1,500 employers and employees, reported in trade press 18 December 2024. The origin of the 60% employer-intent figure, the 42% employee-expectation figure, the 43% received-last-year figure and the $251โ€“$500 modal band. Field dates and the split between the two groups are not published. Used only in sections 7 and 11, as the subject of the discussion rather than as a source of fact.
  • Hours basis for derived metric 1 โ€” 2,080 hours is the full-time-equivalent convention (40 hours ร— 52 weeks). ECEC costs are per hour worked across full- and part-time workers, so annualising at 2,080 produces a full-time-equivalent figure, not an observed average per employee. Adjust for your own average hours before reusing it.
  • Citation. If you use these figures, please cite the underlying source rather than this page, and link here as the compilation. The five derived metrics โ€” the implied $2,766 per worker and $5,424 per worker with access, the 2.13ร— ratio of bonus-cost growth to total-compensation growth, the finding that the entire 2025-to-2026 access gain sits with management and professional occupations while service occupations stayed at 37%, the 6.0ร— gap between surveyed employer intent and federal worker access, and the 34.6% leakage and 1.53ร— gross-up multiplier on a cash bonus โ€” are original to this page and should be attributed to Rewordin together with their stated inputs and assumptions.

    Key takeaways

    • 51% access to any bonus, 15% to an end-of-year bonus, 10% to a holiday bonus. Those are the March 2026 federal numbers, and they are the right benchmark for "is this normal?".
    • The widely quoted 60% is roughly 6ร— the federal rate because it counts surveyed companies, not workers, and it dates from December 2024.
    • Bonus cost per hour has grown 2.1ร— faster than total compensation since 2021 โ€” employers have been shifting money into variable pay while base-pay budgets flattened at 3.4%.
    • The access gap by occupation widened to 24 points in one year, with service occupations flat at 37% for two years running.
    • Construction and retail pay for the holiday; information and wholesale pay for the year. Which bonus is normal depends entirely on the industry.
    • 34.6% of a cash bonus is lost to withholding and payroll tax, and $500 net costs $765. In the US a gift card is taxed identically; outside the US it often is not.
    • There is no reliable average bonus amount. Federal data measures access and employer cost, never per-recipient payouts.

    Make the December payment one of twelve, not the only one

    29% of employees were recognised in the past week, and roughly one in ten has a holiday bonus. The budget you are about to spend in a single December payment goes further as a series of smaller moments people actually remember. Rewordin delivers gift-card rewards in 150+ countries in local currencies, with per-recipient reporting on who was rewarded, when and what for โ€” so recognising someone in Manila takes the same effort as recognising someone in Milwaukee.

    About the authors

    MK
    Maciej Kamieniak
    Founder & CEO, Rewordin

    Maciej is the founder and CEO of Rewordin, a global employee rewards and recognition platform delivering gift cards in 150+ countries. He works directly with HR, People Ops, compensation and finance teams on reward programme design, HR systems integration and bulk gift card procurement, and writes about the research behind effective recognition. Based in Wrocล‚aw, Poland. Connect on LinkedIn โ†’

    NK
    Natalia Kamieniak
    CFO, Rewordin

    Natalia is the CFO of Rewordin and co-reviewer of every quantitative claim published on the platform โ€” including the implied annual bonus spend in section 3, the bonus-cost growth ratio in section 4 and the withholding and gross-up arithmetic in section 9, all published here with their assumptions and limitations rather than as survey findings. Connect on LinkedIn โ†’

    Last reviewed: 19 October 2026 ยท Date published: 19 October 2026 ยท Next data update: the BLS Employer Costs for Employee Compensation release for the September 2026 reference period, and the Employee Benefits in the United States release for March 2027
    Every statistic on this page is attributed to a named source with its reference period. Federal establishment data is distinguished from survey panel data. Derived metrics are labelled and their arithmetic shown. Widely circulated figures we could not trace to a current primary source are listed separately in section 11 rather than repeated as fact. This page is general information on compensation benchmarks and withholding mechanics, not tax advice; confirm your own position with a qualified adviser.

    What percentage of companies give holiday bonuses in 2026?

    The federal figure measures workers rather than companies, and it is much lower than the surveys suggest. In March 2026, 10% of all US workers had access to a holiday bonus and 15% of private industry workers had access to an end-of-year bonus, according to the BLS National Compensation Survey. 51% of private industry workers had access to a nonproduction bonus of any kind, a category that also includes referral, profit-sharing and longevity bonuses. The widely republished claim that 60% of employers give holiday bonuses comes from a December 2024 employer-intent survey and is roughly six times the federal access rate.

    What is the average holiday bonus amount?

    There is no reliable published average. The US federal statistical system measures whether a bonus is available and what bonuses cost employers in aggregate, not what a typical recipient receives. Every dollar figure in circulation โ€” including the commonly quoted $251 to $500 band โ€” comes from a survey panel rather than from official data. What can be derived from federal data is the aggregate: nonproduction bonuses cost private employers $1.33 per hour worked in June 2026, which annualises to roughly $2,766 per private industry worker per year, or about $5,424 per worker who has access. Both figures are our derivation and depend on an assumption of 2,080 hours.

    Is a year-end bonus the same as a holiday bonus?

    Not in the federal data, and the distinction is useful. BLS counts them as separate types of performance-based award. An end-of-year bonus is tied to the year's results and is more common in industries with measurable annual performance โ€” information, wholesale trade, manufacturing. A holiday bonus is tied to the holiday itself and is more common in industries whose December is their busiest month: in retail trade it is more than twice as common as the end-of-year bonus. Construction is the one industry that scores highly on both, at 19% and 14% respectively in the March 2024 data.

    How is a year-end bonus taxed in the US?

    A bonus is supplemental wages. For 2026, IRS Publication 15 allows an employer to withhold a flat 22% of it for federal income tax, with no other percentage permitted under that method, rising to 37% on cumulative supplemental wages above $1 million in a calendar year. The alternative is to aggregate the bonus with regular wages and withhold as if it were a single payment. Either way Social Security and Medicare apply, and state and local income tax is extra. The 22% is withholding rather than final tax liability, so an employee with a lower marginal rate recovers part of it at filing.

    Are gift cards taxed differently from a cash year-end bonus?

    Not in the United States. The IRS treats a gift card as a cash equivalent, so it is taxable wages from the first dollar and the de minimis fringe benefit exclusion does not apply to it. A $100 gift card and $100 of cash bonus carry the same withholding and payroll tax. Outside the US the position often differs: several countries exempt modest non-cash gifts while exempting no cash at all, which is why the same programme can be tax-inefficient in one jurisdiction and efficient in another. Our guides to the IRS rules and to UK trivial benefits work through both cases.

    How much of a $500 bonus does an employee actually keep?

    About $351.75, or 70.4%, before any state or local income tax: $500 less 22% federal flat withholding and less the employee's 7.65% FICA share. The employer also pays its own 7.65%, making the fully loaded cost $538.25, so 34.6% of what the employer spends does not reach the employee. Delivering $500 net requires a gross bonus of $710.73 and about $765 of employer cost โ€” a 1.53 times multiplier. The Social Security component stops once annual wages exceed the wage base, so the arithmetic is more favourable for high earners.

    Are holiday bonuses going away?

    The two datasets point in opposite directions, and both are right about different things. Access to nonproduction bonuses has risen from 38% in 2017 to 51% in 2026, so more employers have a bonus programme than a decade ago. At the same time bonuses are retreating from job advertisements: signing bonuses appeared in 3.0% of US postings in December 2025 against a 5.6% peak in August 2022, and year-end bonus mentions reportedly more than halved year on year. Employers are keeping the bonuses written into their existing compensation plans while withdrawing the ones used to attract candidates.

    Which workers are least likely to get a year-end bonus?

    Service occupations. In March 2026, 37% of private industry workers in service occupations had access to a nonproduction bonus against 61% in management, professional and related occupations โ€” a 24-point gap. The gap widened over the previous year, because the management and professional figure rose from 58% while the service figure stayed at 37%. By industry, hospitals (6% end-of-year, 2% holiday), leisure and hospitality, retail trade and transportation and warehousing have the lowest end-of-year access, though retail and hospitality partially substitute a holiday bonus instead.

    Does a year-end bonus improve engagement or retention?

    Not on its own, and the recognition data explains why. As of May 2026, 29% of US employees said they had received recognition or praise in the past seven days and 31% were engaged, so a December payment typically arrives after a year in which most people were acknowledged rarely or not at all. One annual payment cannot carry that weight. The more defensible use of the same budget is to raise the frequency of recognition rather than the size of a single transfer โ€” the cost is identical and the number of moments is much higher.