Salary increases in both lump-sum payments and annual wages, additional days of annual leave, and the highest boosts for lower-paid banking employees are included in the preliminary agreement reached last Friday regarding the renewal of the collective agreement in Cyprus’ banking sector.

The collective agreement, provisionally concluded between the Association of Cyprus Banks and ETYK, will cover the years 2023–2027.

According to Brief, for 2023, 2024 and 2025, the increases will be granted retroactively. Specifically, a lump sum of €4,500 will be paid to staff in three instalments, disbursed in 2025, 2026 and 2027. It was also agreed that monthly salaries will receive an additional €100, again provided in two instalments of €50. Regarding lower-wage earners, the preliminary agreement foresees ad hoc increases in monthly pay.

ETYK traded its pioneering proposal for a four-day work week—submitted for negotiation purposes rather than as a substantive demand—in exchange for an increase of six additional days on the existing entitlement to annual leave. In total, bank employees will now be entitled to 36 days of annual leave, excluding public holidays.

Provisions concerning low-interest and preferential loans for bank employees remain in effect under the new collective agreement.

For the purchase of a first residence, employees will be eligible for a maximum loan of €180,000, and for the purchase of a car, up to €30,000.

The preliminary agreement will be submitted to the Board of Directors of the Employers’ Association of Banks for ratification, as well as to the district general assemblies of the union’s members.

However, senior banking sources clarified that no final agreement has yet been reached, as further clarifications are required on several important points of the preliminary deal.

It is also noted that neither side was able to provide the total labour cost that this agreement would generate for the banks.