The average year-end bonus increased 2% in 2024 compared to 2023, according to a recent report from Gusto Insights, the research arm of a technology company that provides payroll services for over 400,000 U.S. businesses.
The average year-end bonus for all employees was $2,503 in 2024 compared to $2,447 in 2023, according to the data. However, bonus amounts varied greatly by industry with the biggest percentage increases in Communications (up 22% to $5,134 in 2024) and Real Estate (up 10% to $5,040 in 2024).
However, the share of workers receiving a bonus declined by almost 2% over the same period. So, while there are fewer workers who received a bonus this year than in 2023, the average payment was a bit higher for those who received one, the report said.
“This indicates that while some employers are continuing to use bonuses as a tool to keep their top performers engaged, they may not be paying bonuses to the entire staff, as we sometimes saw during the peak of the hiring market in 2021 and 2022,” the report said.
Notably, many service industry workers saw smaller end-of-year bonuses in 2024 than in 2023. Sectors like transportation and warehousing faced reduced demand, leading to significant declines in year-end bonuses (-10%) for workers in these industries. Workers in that industry received an average bonus of $1,212 in 2023, but only $1,088 in 2024.
The decline in the amount of the average bonuses paid to workers in Personal Services (-10%), and Tourism & Accommodations workers (-7%) signals that after years of significant wage growth in response to pandemic-era shutdowns and subsequent re-openings, wage growth may be cooling off in these industries.
The average bonus for a worker in the personal services industry was $994 in 2023 but declined to $898 in 2024. Workers in Tourism and Accommodations received an average bonus of $1,322 in 2023 but only $1,225 in 2024.
