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Release: More than 1 in 4 employees receive bonuses

12-Oct-2015

And Derby is the bonus capital of the UK with 46.9% of employees earning bonuses. 

More than a third of men earn bonuses compared to just over a fifth of women, Kensington analysis shows. 

More than one in four employees rely on bonuses at work to boost their take-home pay, new analysis*, conducted for mortgage lender Kensington shows.

Its analysis of Government data shows 27.8% of UK workers – the equivalent of 8.62 million ** employees - receive bonuses on top of their salary.

The bonus capital of the UK is not London, but Derby where 46.9% of employees receive bonuses. Inner London ranked just sixth behind Bracknell Forest, Milton Keynes, Windsor & Maidenhead and Cheshire East. Take a look at the table below for more details.

Employees in Torbay and Middlesbrough are the least likely to receive bonuses. Just 14.1% in Torbay do compared with 15.6% in Middlesbrough.

Men are more likely to receive bonuses than women – the analysis shows 34.7% of male workers receive bonuses compared with just 21.1% of female workers.

Steve Griffiths, Head of Sales at Kensington, says: “Bonuses are an important part of total pay for more than 8 million people. This is not about multi-million bonuses but hard working people who rely on additional bonus payments as part of their total income.

“And, with the average house price now more than £200,000, it is hugely important for many people to find a lender that is able to consider all of their earned income, including bonus payments, when calculating how much they can afford to borrow.

“Kensington treats customers as individuals. Every application is assess by an experienced underwriter and, for the right cases, we are able to include 100% of a customer’s bonus as part of our affordability assessment.”

ONS data*** shows total bonuses paid across the UK in the year to April 2014 were worth £40.5 billion and contributed an average of 6% to total pay. However there are huge differences in industries with average finance and insurance bonuses worth 23.6% of total pay and £13,300.

The tables below shows the top 10 local authority regions for bonuses and the 10 local authority where workers are least likely to receive bonuses.

TOP 10

LOCAL AUTHORITY REGION

PERCENTAGE RECEIVING BONUSES

Derby

46.9%

Bracknell Forest

46.4%

Milton Keynes

41.6%

Windsor & Maidenhead

41.6%

Cheshire East

41.3%

Inner London

40.8%

Swindon

40.5%

Slough

39.5%

Flintshire

38.6%

Warrington

38%

 

BOTTOM 10

LOCAL AUTHORITY REGION

PERCENTAGE RECEIVING OVERTIME

Torbay

14.1%

Middlesbrough

15.6%

Carmarthenshire

16.1%

Pembrokeshire

16.5%

Isle of Wight

16.7%

East Ayrshire

17.5%

Merthyr Tydfill

17.7%

Derry

17.8%

Midlothian

17.9%

Cynon Taf

18.4%



Kensington mortgages are for customers with complex circumstances. Where appropriate, the lender, can take account of 100% of additional earnings, which can include bonuses, overtime, second jobs as well as investment and pension income. Kensington mortgages are only available through professional mortgage intermediaries, such as mortgage brokers and IFAs.


* Kensington analysis of ONS data on overtime and bonus payments in Annual Survey of Hours and Earnings

** UK labour force is 31.03 million
http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/august-2015/statistical-bulletin.html

***  
http://www.ons.gov.uk/ons/rel/mro/news-release/bonus-payments-up-4-9--on-last-year-at--40-5-billion/bonus0814.html

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