The preliminary agreement reached on the renewal of the collective agreement in the banking sector contains both positive and negative elements for employers and employees.

The most significant outcome of the forthcoming signing of the five-year collective agreement (2023–2027) is the assurance of industrial peace for the next three years.

Banks that are members of the Employers’ Association of Banks view this as crucial, as any labour disruption in the financial sector carries significant costs.

A review of the main provisions of the draft agreement—leaked but not denied by either side, both of which declined to comment—suggests a potential “win-win” outcome.

Bank employees will receive €4,500 in lump-sum payments by the end of 2027, paid in three instalments of €1,500 between 2025 and 2027.

This is the first time such a provision appears in a banking collective agreement and marks a shift, as the one-off bonus does not create recurring payroll costs. Previous agreements relied on percentage-based, recurring wage increases.

Across-the-board annual increments remain, regardless of performance, and COLA is restored at 100%, resulting in an estimated annual cost of 4%–5% for banks.

Banks’ contributions to both the union health fund and GeSY remain unchanged.

Employees will also receive a €100 salary increase for 2026–2027, paid in two €50 instalments and incorporated into basic pay.

However, the actual cost to banks is €50, following the union’s acceptance of a reduction in the employer health fund contribution from 3% to 2%, saving banks about €650 per employee annually.

After statutory and other deductions, employees are expected to net a monthly increase of €35–€40.

The union withdrew its proposal for a four-day working week, initially submitted for bargaining purposes, in exchange for six additional days of annual leave per grade.

As a result, bank employees will be entitled to 28 to 34 days of annual leave, depending on seniority.

Provisions for preferential, low-interest staff loans remain unchanged, with caps of €180,000 for a first home and €30,000 for car loans.

On the employers’ side, wages reduced following the 2013 Troika-imposed cuts will not be restored. Acceptance of that demand would have increased payroll costs by over 7%, a level considered prohibitive for smaller banks.

Banks declined to comment on the overall cost pending ratification by KEST, noting that payroll structures vary by institution.

The preliminary agreement will be submitted to the Board of the Employers’ Association of Banks and to district general assemblies of union members.

Senior banking sources told Brief that reservations remain among some employers, while others stressed that no final agreement has yet been concluded.