Panayiotis Rougalas
Negotiations over the renewal of the 2023–2027 Collective Agreement between the Cyprus Banks Association (KESK) and the Cyprus Bank Employees’ Union (ETYK) have ended on a positive note, clearing the way for pay increases and improved benefits for bank employees.
According to information obtained by K, the two sides have reached an agreement in principle to extend the collective agreement through 2027, closing a long-running chapter that had remained unresolved since the previous agreement expired in 2025, despite covering the period from 2023 onward.
The final deal focuses on supporting lower-paid employees, providing both one-off payments and permanent monthly wage increases. While ETYK’s demand for a four-day workweek was not included, a firm red line for banks, employers agreed to additional annual leave for staff.
Pay raises confirmed
Under the agreement, all bank employees will receive a €4,500 lump-sum payment, to be paid in three installments, one each in 2025, 2026, and 2027.
In addition, workers will see a permanent €100 monthly salary increase, rolled out in two stages: €50 in 2026 and €50 in 2027, fulfilling a long-standing demand from ETYK. Further technical details are expected once the agreement is formally signed.
Better loan terms, more leave
The deal also improves access to low-interest, preferential loans for bank employees. The ceiling for housing loans will rise to €180,000, while car loans will increase to €30,000.
Although the four-day workweek was rejected, banks agreed to grant six additional days of annual leave to both existing and newly hired employees.
Final approvals pending
The agreement now awaits approval by the governing bodies of both KESK and ETYK. Once approved, the deal will be formally signed and officially announced by the parties involved.
The agreement secures labor peace in the banking sector at a time when negotiations had stalled over competing demands. Strong economic performance and positive results in the banking sector ultimately created the space for compromise, allowing both sides to reach what officials described as a “golden mean.”
*Read it in Greek here.
