Workers at JCB factories in Staffordshire, Derbyshire and Wrexham will share in the bonus worth a total of more than £2m.
And from January 1, 2012, UK employees will receive a pay increase, which is linked to November’s Retail Price Index.
JCB Chairman Sir Anthony Bamford said today: “JCB has continued to recover strongly this year from the difficult trading conditions of 2008 and 2009 and all areas of our business rose to the challenge of growing sales in a tough economic environment.
“Last year we sold 51,600 machines and this year sales will increase by more than 30 per cent.
“The award of another Christmas bonus and a substantial pay increase wouldn’t have been possible without team work at JCB during the severe economic downturn of 2008 and 2009 when everyone worked together to ensure the business emerged strongly from a difficult trading period.
“The economic outlook has become more uncertain in recent months but if we continue to work as a team, I’m sure we can achieve even more next year.”
In October 2008, JCB staff in the UK voted to work a 34 hour week in order to help save the jobs of hundreds of their colleagues.
All employees also endured an 18-month pay freeze from 2009 to the summer of 2010.