ONS: Financial services bonuses still highest

Financial services bonuses are still the highest of any sector in the UK economy.


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.


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