By Daniel Hunter
Total bonus payments received across the whole economy during the financial year April 2012 to March 2013 were £36.9 billion, an increase of 1% compared with the same period in 2011/12. This equates to an average of around £1,400 per employee.
Of the £36.9 billion paid in bonuses in 2012/13, £13.3 billion was paid in the finance and insurance industry, virtually unchanged from the previous financial year.
The increase in bonus payments for the whole economy was driven by the rest of the economy, which experienced a 1% increase in bonuses. Total bonus payments received in the rest of the economy in 2012/13 were £23.6 billion, almost as high as bonus payments in 2007/08, when bonus payments were at their peak.
However, a number of businesses responding to the Monthly Wages and Salaries Survey (MWSS) reported that they paid their bonuses in March last year but in April this year. Thus, it is useful to also examine bonus payments paid in the period May to April to present a complete picture of how bonus payments changed between 2011/12 and 2012/13.
Using this method, total bonus payments received across the whole economy during the period May 2012 to April 2013 was £38.6 billion; an increase of 4% compared with a year earlier. The average bonus per employee at whole economy level during this period was £1,500. Of the £38.6 billion, £14.0 billion was paid in the finance and insurance industry, also a 4% increase over the year.
Usually, the majority of large bonuses are generally paid in the period December to March each year, mainly, but not exclusively, in the finance and insurance industry. This period is sometimes referred to as "bonus season". Seventy-two per-cent of total bonuses paid in the finance and insurance industry in 2012/13 were paid during this period.
Bonus payments paid in the rest of the economy between December 2012 and March 2013 represented 43% of total bonuses, with the majority of the bonuses paid in March. This means that the "bonus season" is less significant in the rest of the economy than in the finance and insurance industries.
Join us on