Author name: Sandhya Rani

Millions of US Workers See Pay Rise as Minimum Wage Laws Kick In This article is based on recent reporting

A six-year payroll study shows fewer US workers receive bonuses, with payouts shrinking and seasonal timing becoming more concentrated.
Bonuses are becoming less common—and smaller—across the US workforce, according to a six-year analysis of payroll data conducted by ADP. The study, covering December 2019 through December 2024 and approximately 12 million employees, reveals that fewer than 40% of US workers received a bonus in 2024, a steady decline from the pandemic-era peak of nearly 44% in 2021.
The drop reflects a shift away from the aggressive incentive strategies employers adopted during COVID-related labor shortages. Median bonus payouts also declined slightly, falling from $1,857 in 2023 to $1,786 in 2024, although payouts varied widely depending on role, industry, and income level.
Bonus distribution remains highly seasonal, with December, January, and November accounting for a significant share of payouts—an important consideration for payroll planning. Industry trends also diverge: construction and manufacturing lead with over half of employees receiving bonuses, while education lags significantly.
For payroll teams, these trends underscore the growing importance of accurate incentive tracking, timing precision, and compliance readiness, especially as bonuses continue to play an outsized role in compensation for higher-income employees.