John Lewis and Waitrose workers are in line for a 3% bonus as the department store announced bumper sales.
As well as the bonus, staff are getting a 2% pay rise, as John Lewis has signed up to the Real Living Wage.
This means its workers' overall pay packets are going up by £54million.
The two measures add up to a 5% increase in income for the average worker. However, inflation is currently 5.5% , meaning workers' cash is still being eroded at a higher rate.
Management of John Lewis Partnership, which owns John Lewis and Waitrose, are donating their bonuses to the British Red Cross.
John Lewis announced it had £4.93billion of sales for the year ending January 29, up 8% on the previous 12 months, it announced today.
It made a loss before tax of £26million, but said that was £491million better than the preceding year.
John Lewis closed 16 stores last year, and lockdown meant all its shops had to shut for 10 weeks.
The department store chain said two-thirds of its sales last year were made online.
John Lewis Partnership chair Dame Sharon White told staff: “I want to thank you for your commitment and dedication in what has been another tough year. With the pandemic and with so much change within our business, I don’t underestimate the personal impact and I am truly grateful."
Last week The Mirror reported that John Lewis had cut ties with Russia due to the country's invasion of Ukraine.
John Lewis has withdrawn all products made in Russia from shelves - though it only stocked two in the first place.
A statement said: "The John Lewis Partnership is removing from sale products in Waitrose and John Lewis that are made in Russia.
"This means that, from today, we will no longer sell two products - one Russian Vodka in Waitrose and one line of pizza oven pellets in John Lewis.
"We’re working with our suppliers to review products that have components of Russian origin and will be seeking to mitigate further exposure to the region."
John Lewis is also ditching its famous "Never Knowingly Undersold" promise to shoppers after almost 100 years.
The famous slogan was an early example of a price match guarantee.
It meant the iconic retailer would match the price of branded products in other shops if a customer found it cheaper elsewhere.
But the policy did not apply to online-only rivals, and John Lewis says it no longer reflects how people shop.
The firm said it will invest £500million in keeping prices down without customers having to shop around.
This figure is 25% more than was spent on maintaining lower prices in 2021, John Lewis said.
The “Never Unknowingly Undersold” promise was introduced in 1925 when John Lewis only had two branches.
