Around 5,000 workers at JCB factories in Staffordshire, Derbyshire and Wrexham will share in the bonus, worth £2.5m.

In addition, from January 1, 2013, staff will see a pay increase linked to November’s Retail Price Index in line with a three and a half year pay deal.

JCB Chairman Sir Anthony Bamford said: “JCB has performed well in 2012.

“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.

“I’m delighted we’re able to award another Christmas bonus this year as a thank you for everyone’s hard work and commitment during 2012.”

Production Manager Ian Davies, aged 32, of Wrexham, who works at JCB Transmissions in Wrexham, said: “While the JCB Christmas bonus is something of a tradition, it isn’t something we take for granted. It’s brilliant that the company rewards us at this special time of year.”