Businesses are ditching Christmas parties this year

Owners cite rising costs as they prioritize employee bonuses.

Some small business owners are skipping traditional Christmas parties in favor of employee bonuses, citing rising costs and economic hardship.

Rizal-based café owner Kristel Ann Mejia said she had chosen to give cash bonuses to employees instead of holding the traditional holiday party.

“In light of the current economy, we are skipping the traditional Christmas party this year and giving cash bonuses directly to our employees instead,” she posted to Threads on October 26.

Other business owners shared similar plans in the comments section of Mejia’s post, believing cash bonuses to be a more practical benefit for employees.

Some, like Cebu-based business owner Robert Calatcat, are choosing to simply scale down their Christmas parties while still providing gifts for employees.

“We’ll do a simple Christmas Party. Distribute grocery items to employees, give goodies to their children, simple Rewards and Recognition to high performers and simple pakain. No performance. No expense from employees. Hindi rin kami nagpaperform last year,” Calatcat commented.

Calatcat said his team deserved a simple celebration after the challenges it had faced over the past year.

“Ngayon kasi sa company namin, we need togetherness kasi andami namin pinagdaanan nung earthquake and typhoon last year. Nakasurvive kami so mabuti rin magcelebrate kahit simple lang,” he added.

However, some larger companies may be opting to scale down celebrations and gifts altogether. Some employees also shared under Mejia’s post, saying previously granted Christmas benefits would be discontinued this year due to rising costs.

“Samin may year end party pa rin pero inalis na christmas basket and [gift certificate] huhu,” said Threads user @mrs.breds.

Christmas parties often come with additional expenses for businesses and employees alike, with workers sometimes asked to contribute their own share and bring gifts. While many may be saddened at the loss of one holiday celebration, the savings could provide some relief to those already coping with rising living costs.

Headline inflation rose to 7.2% in September 2026 from 6.1% in the previous month, its highest level in more than three years. Average inflation for the year stood at 5.4%, while inflation in September last year was only 1.7%.

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