A significant agreement has been reached between the Cyprus Banks Association (KESK) and the Cyprus Bank Employees’ Union (ETYK), promising substantial improvements for the banking workforce. This collective agreement, effective until 2027, introduces considerable pay raises, increased annual leave, and more favourable loan terms for employees. The accord represents a crucial stride towards fostering greater labour harmony within the island's financial industry.
This comprehensive pact is the result of extensive negotiations, addressing long-standing demands from ETYK. It reflects the robust economic performance and positive financial outcomes currently enjoyed by Cypriot banks. This favourable economic climate has facilitated a compromise beneficial to a wide range of employees, with particular consideration given to those on lower incomes. Formal implementation is anticipated following the ratification by the governing bodies of both KESK and ETYK.
A key feature of the agreement involves substantial financial incentives for all bank employees. A one-off payment of €4,500 will be distributed in three annual instalments of €1,500 throughout 2025, 2026, and 2027. Furthermore, permanent monthly salary increases have been negotiated. Beginning in 2026, salaries will rise by €50 monthly, with an additional €50 increment scheduled for 2027. This phased approach will result in a cumulative permanent monthly raise of €100 for every employee.
Beyond direct salary adjustments, the agreement significantly enhances employee benefits and overall well-being. A notable concession includes an additional six days of annual leave for all staff, both existing and newly recruited. This will provide a more substantial period for rest and personal pursuits. Additionally, access to employee loans has been considerably improved, with increased borrowing ceilings for greater financial flexibility. The maximum housing loan amount has been raised to €180,000, while car loans can now reach €30,000, all offered at preferential low-interest rates.
While various employee concerns were discussed, a four-day workweek was not included in this particular agreement. Nevertheless, the comprehensive package of financial and non-financial benefits is expected to significantly boost morale and job satisfaction across the sector. The agreement's extension through 2027 offers stability and predictability for employers and employees alike, fostering an environment conducive to continued growth within Cypriot banks.