Banks agree: Employees to get €4,500 in bonuses, salary hikes and expanded loans

A final agreement has been struck between Cypriot banks and the employees’ union ETYK, bringing months of consultations to a close and setting the stage for a formal vote. Kathimerini first reported last week that an agreement in principle had been reached and is now the first to present the full details ahead of the upcoming general meetings.

Covering the 2023–2027 period, the new framework agreement is seen as crucial for ensuring industrial peace and stability, providing predictability for both employees and banks across the country. It addresses salaries, benefits, institutional matters, and terms of employment, applying to all staff at banks that are members of the Cyprus Employers’ Association of Banks (KEST). From January 1, 2026, the updated scales will officially apply to all employees.

Bonuses and Salary Increases

Staff will see a series of bonuses totaling €4,500 across three years: €1,500 for 2024 results by January 30, 2026; €1,500 for 2025 results by June 30, 2026; and €1,500 for 2026 results by June 30, 2027. Any bonuses already paid for 2024 will be accounted for.

On top of this, employees will get a €50 increase in their basic salary from January 1, 2026, with another €50 boost from January 1, 2027. Seventy-five percent of the annual increase will be applied automatically, while the remaining 25 percent will be determined jointly between each bank and ETYK.

Vacation Days and Loans

Vacation entitlements will rise by six days for all categories of bank staff starting January 1, 2026. Loan limits will also increase: mortgages up to €180,000, renovation loans €50,000, student loans €30,000 for Cyprus-based children and €40,000 for children studying abroad, car loans €20,000, and wedding loans up to four months’ salary.

Leave, Health, and Benefits

The agreement also covers childbirth, maternity, and paternity leave in line with legislation, while giving employees the option for unpaid leave for educational or family health reasons. Health coverage is expanded, with all employees joining the Single Health Fund starting January 1, 2026. Contributions are set at €7 per dependent per month and 1.25% of a spouse’s salary if covering a working partner. Banks will match €7 per dependent, while contributions to TYETYK will rise to 2%, with employees able to choose rates between 1% and 1.5%.

Automatic Price Indexation (ATA) rules, currently applied to government staff, will extend to all bank employees, and teleworking provisions are included, with implementation details to be agreed upon by both sides.

Finally, the agreement includes a full codification of existing agreements, with any issues not explicitly addressed continuing under the current ETYK agreements.

*Read the Greek version here.