Around 91,000 John Lewis Partnership employees are to share a bonus payout of £202.5 million.
Employees will receive 15% of their average salary, equivalent to eight weeks’ pay, just two percentage points lower than last year’s 17% bonus payout.
The retail giant, which includes John Lewis and Waitrose, set out the bonus plans in its annual report Results for the 52 weeks ended 25 January 2014.
It also reported that the organisation’s defined benefit (DB) pension deficit increased by 22% to slightly more than £1 billion, a rise of £181.3 million.
In January 2014, John Lewis Partnership paid a one-off £85-million cash contribution into its DB pension scheme and set out plans to reduce its deficit.
The partnership also invested £584 million in benefits in 2013. This includes the bonus, pensions, staff discount, catering subsidy, long-service leave, leisure spending and the running of its five holiday centres.
Charlie Mayfield, chairman of the John Lewis Partnership, said: “The pension is one of the most important benefits offered to [employees], but also accounts for the greatest single investment made each year by the partnership.
“We are undertaking a review of the pension scheme to ensure that it can remain fair to [employees] and sustainable from a business perspective.
“It has been a good year for the partnership. As a result of our performance, I am delighted that 91,000 partners will receive a bonus of 15%, equivalent to nearly eight weeks’ pay.
“The bonus reflects the balance of a strong trading year, but also the increased costs of pension provision.”