Christmas bonus (United Kingdom)

A Christmas bonus in the United Kingdom refers to an additional payment, often discretionary, made by employers to employees around the Christmas period. It is generally regarded as a gesture of goodwill and appreciation for the employee's work throughout the year.

Unlike some countries where a "thirteenth month" or similar bonus is legally mandated, Christmas bonuses in the UK are not usually a legal requirement unless explicitly stated in an employment contract or company policy. The bonus may be a fixed sum of money, a percentage of the employee's annual salary, or a gift.

The payment of a Christmas bonus is subject to income tax and National Insurance contributions in the same way as regular salary payments.

Factors influencing whether an employer provides a Christmas bonus can include the company's financial performance, industry norms, and the employer's overall compensation philosophy. While once more prevalent, Christmas bonuses have become less common in recent years, with some employers opting for alternative forms of employee recognition or increased year-end performance bonuses tied directly to individual or company targets. The exact conditions for eligibility, calculation, and disbursement, if any, are determined by the employer.