Holiday Bonus: Is it mandatory to give a Christmas bonus?

With the Christmas season in full swing and 2023 drawing to a close, businesses big and small are focused on having office parties and celebrating the festivities.

Something else being considered is whether to give employees a Christmas bonus. That entails an extra payment, which is usually a percentage of the employee’s salary that is given in addition to their regular pay.

They are a common practice for most businesses as it’s a way for employers to show employees that their hard work over the year has been appreciated.

Why give a Christmas bonus and is it mandatory?

While some employers give bonuses for good performance or years of service, it’s also a way to show appreciation. It helps to boost morale and keep employees happy, and can provide them an extra incentive to work hard and produce results.

Employers usually consider their budget and whether they can afford to give everyone a bonus.

There are no legal obligations for employers to give employees a Christmas bonus, however many choose to do so. Whether an employer does so is entirely up to them, though it is seen as good practice.

Alternatives to a bonus

A holiday bonus doesn’t have to be an extra sum of money on top of the employee’s salary. It can also be something like extra vacation days, gift cards or cash.