NICs hike brings Christmas bonus woes |
The Chancellor’s decision to increase the National Insurance burden for companies has led many employers to cut Christmas bonuses for staff, the Telegraph reports. According to a study carried out by Robert Walters, of the workers who typically receive an end-of-year bonus, 45% will receive nothing in December or January, according to a survey of 500 employers, a jump from 32% in 2023, and 30% the year before. A third of employers attributed bonus cuts to reduced profit margins, while a quarter cited economic uncertainty and inflation. Robert Salter, director at tax firm Blick Rothenberg, said: “Some firms haven’t changed anything yet, as the rises haven’t kicked in yet – and they want to reward workers who have had a good year. But some companies have struggled anyway, and [ . . . ] are cutting bonuses, because if they get it wrong, they may have to make redundancies – and they would much rather cut bonuses where they can.”