Understanding the true cost of Christmas and the festive season for employees

In 2025, a whopping 78% of Australians planned to adjust their Christmas spending to make their budgets stretch further, expecting to spend an average of $491 on gifts and $506 on food and drink over the festive season.

In 2026, interest rate rises and cost-of-living pressures have exacerbated this financial stress, with our research finding that half of Australian and New Zealand employees feel somewhat or very negative about the current economic climate, and 82% say their cost of living is higher than 12 months ago.

So, if between Secret Santas, prawns for lunch, travel to your favourite relatives and whipping up your Aunt's Pavalova these numbers are making your eyes water, think about your employees and their families! 

As we head into the busiest (and sometimes most stressful) time of year for many of us, it's time to consider what are some of the most meaningful and impactful ways in which we can positively support our workforce in their day-to-day?

So how can HR leaders help, with their budgets tight and rising costs pressuring the business, as well as the individual? Our data points to clear ways that employees want their employer to help them manage the cost of living increases outside of pay. 

What employees want from employers 

• 7 in 10 Australian and New Zealand employees say access to discounted gift cards, retailer discount codes, and cashback would be helpful.

• Around 6 in 10 say access to financial wellness programs (e.g., budgeting tools, financial coaching) would be helpful.

• 8 in 10 say it would be helpful if their employer offered discounts on groceries and petrol.

• Around 7 in 10 say the same for utilities, insurance, health and medical expenses, and internet and mobile plans.

• 1 in 2 say discounts on clothing, personal care, travel, and technology would be helpful. 

Unfortunately, around 4 in 10 respondents don't receive any financial wellbeing support whatsoever from their employer, despite the fact that two thirds say they would be more likely to stay with their employer if discounts were offered.

As you can see, offering an employee discounts program and boosting awareness of of your benefits is crucial. As we head into another festive season, employers have an opportunity to provide meaningful support without increasing fixed payroll costs.

The growing importance of financial wellbeing

Cost-of-living concerns continue to rank among employees' biggest challenges. While pay remains important, many organisations are acknowledging that salary increases alone are not always sustainable.

Increasingly, employees are looking for practical benefits that help them manage everyday expenses and improve their disposable income. Financial wellbeing has become a core part of a modern Total Rewards strategy, alongside recognition, wellbeing, and career development.

This shift is reflected across the market, with employers increasingly investing in benefits that provide tangible, day-to-day value rather than occasional perks.

Where employees spend the most during the festive season

While spending habits vary across households, several categories consistently account for the largest share of festive spending.

Gifts for family and friends

Gift-giving remains one of the biggest Christmas expenses. For parents especially, the pressure to deliver a memorable Christmas can lead to significant spending on toys, games, technology, and entertainment. With many households carefully managing budgets, savings on popular retailers can make a meaningful difference.
Employee discounts on brands such as Big W, Target, Myer, LEGO, EB Games, and JB Hi-Fi help employees save on purchases they were already planning to make, without changing their shopping habits. For employers, these savings provide immediate and visible value, particularly during periods when household budgets are under the greatest pressure.

The Christmas grocery bill

Food remains one of the largest seasonal expenses. From Christmas lunches and family dinners to entertaining guests and stocking the fridge for the holiday period, festive grocery spending can quickly escalate.

Research shows Australians expected to spend more than $500 on food and drink during the Christmas period, making grocery savings one of the most valuable categories within an employee discounts program. Savings at everyday retailers such as Woolworths, Coles, Dan Murphy's, Liquorland, and BWS can help employees reduce the cost of both everyday shopping and festive celebrations. Importantly, grocery discounts continue delivering value long after the holiday season ends.

Travel and holidays

Whether visiting family interstate, taking a road trip, or escaping for a summer holiday, travel costs can add up quickly. Flights, accommodation, fuel, and car hire all place additional pressure on household budgets during the end-of-year period.

Employee discounts can help reduce these expenses through savings and cashback across travel providers, accommodation platforms, and fuel retailers, helping employees get more from their holiday budgets.

For example, savings on petrol at Ampol can really add up, or booking your flights early on Webjet, Expedia, or Booking.com for savings (or even cashback!) of 5-7%. This provided $250,000 in savings for employees one Christmas season. 

If a luxurious AirBnB getaway is calling your name you can save 5% off instant e-gift cards, or if resort-style poolside is more your thing, saving 4%-10% at Booking.com, hotels.com and agoda could be more your speed. 

Technology and big-ticket purchases

Electronics can have a hefty price tag attached, but among the electronic retailers offered on the Reward Gateway | Edenred employee benefits platform, you can save up to 5% on JB Hi-Fi and Apple and 10% at Xbox, and earn cashback at popular electronics providers Sony, Microsoft, and Dell.

This is where the BIG savings come into play, proven by employees using the Engage app (formerly SmartSpending) saving more than $1.7 million in just one shopping season. 

Depending on your employees’ shopping habits, providing an employee benefits program can put more money back in your employees’ pockets, without the cost of a company-wide pay rise. What’s more, a discounts benefit with special savings and cashback where they’re already buying can help add to their overall savings for moments like end-of-year costs.

Supporting employees without increasing payroll costs

One of the biggest challenges facing HR leaders is balancing employee expectations with budget realities. While organisations want to support their people, large-scale salary increases are not always commercially viable.

Employee discounts provide an alternative way to help employees manage rising costs by:

• Increasing disposable income
• Delivering value immediately
• Supporting financial wellbeing year-round
• Providing benefits employees actively use
• Demonstrating employer commitment during periods of financial pressure

The impact can be substantial, with employees often saving hundreds or even thousands of dollars annually on purchases they would have made anyway.

A simple way to make a meaningful difference

Financial wellbeing is no longer a nice-to-have. It's a critical part of the employee experience.

As cost-of-living pressures continue to influence household budgets, organisations that help employees make their money go further can create a tangible and highly valued benefit.

An employee discounts platform helps extend employees' disposable income where it matters most, from groceries and fuel to travel, gifts, and everyday essentials.

And unlike many benefits initiatives, it can be implemented quickly (even within 48 hours!) and begin delivering value almost immediately.

Help your employees save this festive season

Christmas should be a time for celebrating with family and friends, not worrying about finances.

If you're looking for a practical and cost-effective way to support employees through the festive season and beyond, an employee discounts program can provide meaningful savings on the things that matter most.

Discover how Reward Gateway | Edenred can help your employees save more on everyday spending and strengthen your Total Rewards strategy in time for the festive season.