SMBs hiked year-end bonuses 11.5% in a signal of ‘optimism’

A new report has found that the average year-end bonus for 2025 was much more generous and widespread than the previous year within the nation’s small business sector.

The 2025 Year-End Bonus report from Gusto, which manages payroll, HR and benefits needs for small businesses, found that the average bonus paid to employees at U.S. small businesses increased 11.5% in December 2025 compared with December 2024. This figure well outpaces inflation, which hovered around 3% for most of the year. READ MORE