There is no set formula for determining how much of a Christmas bonus you should give. If you are giving money to service personnel such as the mailman or trash collector then a gift of $20 is usually appropriate. If you are talking about your employees then you may want to look at your profitability for the year and if it was a good year then express it as a percentage of their pay. Many companies do a flat gift in the form of a gift certificate to the grocery store to pay for the holiday dinner. The best way to determine the amount is partially with your heart to thank people for their contributions but also using sound business judgement in ensuring you will have the money to operate next year with an amount set aside for unexpected expenses. Everyone would rather have a job than worry about what they did or didn’t get at Christmas.