**Nicosia, Cyprus** – In a significant development poised to bolster the financial well-being and working conditions of its banking workforce, a landmark agreement has been reached between the Cyprus Banks Association (KESK) and the Cyprus Bank Employees’ Union (ETYK). This new collective agreement, which will remain in effect until 2027, introduces substantial pay enhancements, an increase in annual leave entitlements, and more favourable terms for employee loans, marking a crucial step towards securing labour harmony within the island's financial sector.
The culmination of extensive negotiations, the accord addresses long-standing demands from ETYK and is a testament to the robust economic performance and positive financial outcomes currently being experienced by Cypriot banks. This favourable climate has evidently paved the way for a compromise that benefits a broad spectrum of employees, with particular attention paid to supporting those on lower incomes. The agreement, currently awaiting ratification by the respective governing bodies of KESK and ETYK, is expected to be formally implemented following their approval.
Central to the agreement are considerable financial incentives for bank employees. All staff members are set to receive a one-off payment amounting to €4,500. This sum will be disbursed in three equal instalments of €1,500, distributed annually across 2025, 2026, and 2027. In addition to this lump sum, a permanent increase to monthly salaries has been negotiated. Beginning in 2026, a €50 increment will be added to every employee's monthly pay, with a further €50 increase scheduled for 2027, resulting in a cumulative permanent monthly raise of €100. This phased approach ensures a sustained improvement in remuneration over the coming years.
Beyond direct salary adjustments, the agreement significantly enhances employee benefits. A notable concession is the granting of six additional days of annual leave. This improvement will be applicable to both current employees and those newly recruited, ensuring that all members of the banking workforce can enjoy a more substantial period of rest and personal time. Furthermore, access to employee loans has been considerably improved, with increased ceilings designed to offer greater financial flexibility. The maximum amount available for housing loans has been raised to €180,000, while the ceiling for car loans has been elevated to €30,000, all offered at preferential, low-interest rates.
While the negotiations encompassed a wide array of employee concerns, one notable demand that did not feature in the final pact was the implementation of a four-day workweek. Despite its absence from this particular agreement, the comprehensive package of financial and non-financial benefits secured is anticipated to significantly boost morale and job satisfaction across the sector. The extension of the collective agreement through 2027 provides a period of stability and predictability for both employers and employees, fostering an environment conducive to continued growth and operational efficiency within Cypriot banks. This agreement underscores a commitment to valuing the workforce and acknowledging their contributions to the sector's success.