While worker bonuses are declining, pay transparency is gaining momentum in 2026

Good morning!

For many, the start of a new year often signals the beginning of performance review and raise season. But recent data shows the proportion of U.S. workers receiving bonuses has been declining since 2021.

Last year, fewer than 40% of employees got a bonus—down from 44% in 2021. The study also notes that in 2024, the average bonus payout was $1,786, a drop from $1,857 the previous year.

This isn’t the only pay-related trend to watch in 2026. Pay transparency will also be a key topic this year, according to Jay Caldwell, Chief Talent Officer at ADP. In June, European Union member states will be required to comply with new pay transparency laws that mandate salary disclosures in job advertisements (much like ).

“This has suddenly shifted from being less of a hypothetical to something very real for companies,” Caldwell said. “They have to adapt to the requirements of their local jurisdictions. I think the trend here is going to be taking concrete action.”

In the EU, if large employers find a gender pay gap of 5% or more, they will be obligated to conduct an audit to address the disparity. Caldwell predicts 2026 will bring increased investments in the HR compliance space. HR leaders should ensure they have the “right automation in place” to help them adhere to these new laws more easily, he added.

“I think that’s the core challenge: More and more organizations are becoming more global and dispersed, operating across more states and countries,” Caldwell said. “Employers will have to be very disciplined in managing this.”

Kristin Stoller
Editorial Director, Live Media