Construction equipment manufacturer JCB has announced a £2.5 million Christmas bonus pot for its workforce despite predicting economic headwinds early next year.
The firm, which sells its products in more than 160 countries, said its UK employees would receive a £500 Christmas bonus payment, as well as a 3% pay rise in January.
Around 5,000 workers at JCB factories in Staffordshire, Derbyshire and Wrexham will benefit from the inflation-linked pay hike, which matches November's rise in the Retail Price Index.
JCB's chairman, Sir Anthony Bamford, said the company had performed well in 2012, and was delighted to be able to award the bonus in recognition of employees' hard work and commitment.
Sir Anthony said: "We had a strong start to the year although it has become a lot tougher in recent months, but overall it's been a good year."
JCB's chief executive officer, Alan Blake, said: "When JCB is doing well, Sir Anthony is always very keen to share its success with employees.
"Looking ahead, we are expecting some economic headwinds in the early part of 2013 but we're investing in future growth opportunities around the world.
"JCB is a resilient company and we're confident that 2013 will be a good year as well."