Fewer than one in ten UK employees are expecting a larger Christmas bonus this year, according to new research. Just 9% anticipate an increase, while 62% say they are not expecting a Christmas bonus at all.
The findings, from from all-in-one benefits hub Epassi UK, show that despite declining expectations financial incentives continue to carry weight. Seven in ten employees say the prospect of a Christmas bonus helps keep them motivated, supporting productivity and retention during a period of ongoing cost pressures. For many, bonuses remain closely linked to financial security rather than discretionary spending.
Half of employees expecting a bonus say it provides a financial lifeline due to high living costs. Four in ten report they could not afford Christmas without it, underlining the connection between seasonal rewards and day-to-day financial wellbeing. At the same time, confidence in the future of Christmas bonuses appears fragile, with 43% believing this may be the last year they receive one.
Concerns about the sustainability of one-off payments are shaping broader conversations about how employers support staff through rising living costs. The research suggests that financial wellbeing is increasingly viewed as a year-round issue rather than a seasonal gesture.
The Limits of One-Off Bonuses
While bonuses remain valued, many employees favour more consistent forms of support. Among those expecting a Christmas bonus, 59% say they would prefer ongoing financial assistance throughout the year. This reflects a desire for stability rather than reliance on a single payment at the end of the year.
Benefits packages are increasingly seen as a more effective alternative. Six in ten employees who will receive a Christmas bonus say they would prefer an improved benefits package instead. A similar proportion believe that money spent on a Christmas party could be redirected towards financial support that delivers longer-term value.
Recent research from Zest found that 62% of employees consider company benefits the most important factor when choosing where to work. However, more than half believe their current benefits package is inadequate, suggesting a gap between expectations and delivery that may affect morale and retention.
Benefits Packages and Long-Term Financial Wellbeing
Matt Russell, CEO at Epassi UK and Zest, says the data reflects changing employee priorities.
“Although many employees are resigned to not receiving a bonus from their employer, there is strong demand for financial support throughout the year to help them with rising living costs. Ongoing financial support delivered through benefits packages is a cost-effective approach for employers to reward staff, keeping them motivated which in turn boosts talent retention and productivity,” he said.
The findings point to a growing link between financial wellbeing and perceptions of fairness and support at work. As living costs remain high, employees appear less persuaded by symbolic rewards and more focused on practical assistance that helps them manage everyday expenses.
Moving away from one-off payments towards consistent benefits could play a growing role in addressing financial stress while supporting engagement and retention across the workforce.