Why John Lewis Brought Back its Annual Bonus

For the first time since 2022, the John Lewis Partnership will be paying its staff an annual bonus. 

The group has put aside around US$46m for staff bonuses, which offers staff a 2% bonus – equivalent to a week’s pay. 

This follows a challenging period for the company, in which it scrapped the bonus scheme to focus on investing in the business and “disciplined financial management”. 

Jason Tarry, Chairman of the John Lewis Partnership, says: “There is much still to do, but our growing cash generation and strong balance sheet enable us to invest more in our brands and our Partners to improve the experience for our customers. 

“I'm really grateful for the commitment and passion our Partners bring and, alongside our continued investment in Partner pay, we’re pleased to be in a position to award a 2% Partnership Bonus. We remain on track to make further progress this year.”

Financial recovery at John Lewis

John Lewis reported in its full year results for 2026 that it had seen “another year of growth” following a phase of falling profits that first began in 2020 – with the COVID-19 pandemic leading to the closure of 16 stores across 2020 and 2021. 

The company first scrapped its bonus scheme during this period, with staff receiving a one off bonus in 2022 before the scheme was once again paused to prioritise business transformation. 

While the company shared that it has a “cautious” outlook for 2026, it believes it is “well positioned to navigate the challenging macroeconomic environment” as it invests in a retail-first strategy. 

Jason says: “Our multi-year plan to invest in customers and our brands for the long term is working; we have grown customer numbers and achieved record satisfaction. 

“Despite a subdued market, a challenging lead into the crucial peak period and increased taxes, we took the decision to continue investing in the business, and have delivered cash and profit growth.”

Leading an employee-owned business

For the majority of its history, John Lewis has not had a CEO. Instead, the employee-owned business has operated with a Chairman who leads the board and acts in the interest of the staff, who are known as partners. 

In 2023, the company brought in Nish Kankiwala as a temporary CEO to lead the company through a financial turnaround as it faced high costs, falling sales and significant losses. 

After two years, John Lewis announced it was scrapping the CEO role at the end of Nish’s contract. The company said it believed it had made significant progress and could reduce its top-level management structure to return to its more employee-centred model.  

An investment in people

In February 2026, John Lewis announced that it was investing around US$143m in employee pay, which it said was “driven by the business’ desire to invest in its Partners, representing spend above and beyond the requirements of the National Minimum Wage.”

Shop floor staff are set to receive a 6.9% increase to their wages, with rates of pay set to increase for “partners who gain advanced skills and take on specialist roles”. 

Helen Webb, Chief People Officer for the John Lewis Partnership, said: “Our Partners are the heartbeat of our business. This £108m investment is about putting more money into their pockets month-in, month-out. 

“This pay growth demonstrates a sustained commitment to Partner pay, consistent with previous years. This ensures that the rewards for our Partners’ hard work are built into their monthly pay as we continue to invest in the future of the Partnership."