The total amount of bonuses paid in Financial and Insurance Activities in 2010-11 stood at £14bn, the ONS reports. This is identical to the previous year’s figure and up on the 2008-09 figure of £12bn.
In 2006-07 and 2007-08 bonuses paid in this area of the economy totaled £19bn and accounted for more than 45% of all bonus payments. Overall, despite the drop off post the credit crisis, bonuses in this industry have been on a fast trend upwards over the past 11 years. Payments in this area of the market are now 58% higher than they were in 2000-01.
Only 4% of employees work in finance and insurance but they account for 40% of all bonuses paid in the 2010-11 financial year. This compares to the fact that the public sector, excluding financial services, accounts for 22% of employment in Great Britain yet their total share of bonus payments amounts to just 1.5%.
According to the ONS report the average annual bonus per employee in financial services was £12,500. The next highest was the mining and quarrying sector with an average per person bonus of almost half that, £6,300.
Bonuses are an essential part of financial services, making up a significant part of the total pay of employees, 24.5%, ONS highlights.