Christmas Bonus

Christmas Bonus

As Christmas approaches, many American workers look forward to receiving a Christmas bonus, usually a lump sum of money added to their December paycheck. This Christmas gift from employer to employee may have been inspired by English Boxing Day customs. Although the Christmas bonus began as a voluntary gift, it evolved into an expected increase in one's December salary.

By the late nineteenth century many American employers had adopted the custom of distributing Christmas bonuses among their workers. These personalized exchanges often took place at office Christmas parties, another new, late nineteenth-century custom. The boss himself usually presented each worker with their presents or money. Often the employer tied the gift to the employee's performance during the year.

Christmas bonuses became increasingly common throughout the last decades of the nineteenth century, but between 1900 and 1920, these kinds of personalized exchanges all but disappeared. Labor unions, which grew in numbers and in influence during this period, began to bring the issue of the Christmas bonus to the bargaining table. Unionists argued that workers depended on these bonuses and needed to know in advance approximately how much they would receive. They objected to the nineteenth-century practice whereby the bonuses were distributed according to the whims of managers and bosses. As the twentieth century rolled on, their arguments prevailed. Christmas bonuses were increasingly calculated according to agreed-upon formulas. These formulas often took into account such things as salary level and years of service.

In recent years the number of companies giving Christmas bonuses has declined. Some firms have switched to year-round incentive programs that reward effective employees. Others provide employees with a lavish Christmas party or a day off in lieu of a bonus. According to the Bureau of National Affairs in Washington, D.C., about nine percent of companies with 1,000 or more workers distributed Christmas bonuses in 1999. Workers in small companies were luckier, with about 25 percent of their employers offering modest cash bonuses at Christmas time.

Further Reading

Del Re, Gerard, and Patricia Del Re. The Christmas Almanack. Garden City, N.Y.: Doubleday, 1979. Ostrowski, Jeff. "Companies Moving Away From Christmas Bonuses, Study Finds." The Palm Beach Post (December 24, 1999): 1D. Waits, William. The Modern Christmas in America. New York: New York University Press, 1993.
References in periodicals archive ?
A SURVEY by the Birmingham Mail showed that Sandwell binmen were being offered the best Christmas bonus across Birmingham and the Black Country.
WE may be geriatrics and we may be in our second childhood but that doesn't mean Tony Blair should try to bribe us with a winter fuel allowance, council tax rebate and a Christmas bonus.
Social and Family Affairs minister Mary Coughlan told the Fianna Fail ard Fheis yesterday: "There have been rumours that this year the Government would reduce the Christmas bonus back to the 65 per cent levels afforded by the rainbow coalition in the Eighties - or even abolish it altogether, because of more difficult financial times.
The dividends will be paid quarterly at the rate of 3 cents per share per quarter, except the third quarter when the company will pay 4 cents per share adding one cent as a Christmas Bonus.
INDEPENDENT TD Tommy Broughan yesterday called for the reinstatement of the dole Christmas bonus.
MANILA -- Senator Ralph Recto has filed a bill increasing to P75,000 the amount of 13th month pay, Christmas bonus and other benefits to be exempted the payment of income tax.
But it will infuriate workers who have seen their Christmas bonus and double time for Sunday working both axed.
Unless, of course, we are still part of the fortunate few who receive a Christmas bonus.
PENSIONERS would need a Christmas bonus of nearly pounds 700 to be as well off as they were under the Tories.
In an email to branches, Coral claimed it was paying a record Christmas bonus overall.
In the meantime, I am pleased to announce that the special Christmas bonus of pounds 100 per child will be paid this year in addition to the Christmas bonus paid to foster carers,'' the Minister said.
The board of directors also authorized management to increase the dividend for the third fiscal quarter of 2004 fiscal year to four cents per share reflecting a one-cent Christmas Bonus paid in that quarter.