The average year-end bonus for employees in the United States saw a modest increase of 2% in 2024 compared to the previous year, according to a report by Gusto Insights. This research arm of a technology company that provides payroll services for over 400,000 U.S. businesses found that the average bonus was $2,503 in 2024, up from $2,447 in 2023.
However, the distribution of bonuses varied significantly across different industries. The Communications sector experienced a notable rise of 22%, with bonuses averaging $5,134 in 2024. Real Estate also saw an increase of 10%, bringing the average bonus to $5,040.
Despite these increases, there was a nearly 2% decline in the proportion of workers receiving bonuses. The report noted: “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.”
Certain sectors faced reductions in bonus amounts. Workers in transportation and warehousing received smaller end-of-year bonuses due to decreased demand. Their average bonus fell by 10%, from $1,212 in 2023 to $1,088 in 2024.
Similarly, declines were observed in Personal Services and Tourism & Accommodations sectors. The report indicated a cooling off of wage growth following significant increases during pandemic-era shutdowns and reopenings. In Personal Services, the average bonus dropped from $994 in 2023 to $898 in 2024. For Tourism and Accommodations workers, it decreased from $1,322 to $1,225.
