Cyprus banks and employees union reach deal on new five-year agreement

The Cyprus Union of Bank Employees (Etyk) on Monday announced that it has reached an agreement in principle with the Cyprus Bankers Employers Association (Kest) to renew their collective agreement for the years 2023–2027.

The agreement provides for salary increases, additional annual leave and improved loan terms for bank employees.

According to a statement by Etyk, the understanding was reached with the Bank Employers’ Association following months of negotiations, which intensified in recent months.

Etyk said the talks gained momentum after the re-establishment of the Bank Employers’ Association, which, after almost a decade, assumed responsibility for negotiating the renewal of the collective agreement with the union.

“After months of tough negotiations, the two sides managed to reach an agreement in principle for the renewal of the collective agreement, which generally seems to satisfy both sides,” Etyk said.

The agreement covers the period 2023–2027 and includes both one-off and general pay increases for all staff.

Etyk reported that particular emphasis was placed on low-wage earners, whose increases are higher in percentage terms. The one-off increases amount to a total of €4,500 for all staff, while basic salaries will rise by €100, split into two €50 increases.

Beyond pay, the agreement also extends annual leave for all staff by six days.

This, Etyk said, “shows the great importance that the agreement places on reducing employee anxiety and stress, which admittedly has reached great proportions in recent years and is dangerous for the health of colleagues.”

In addition, the amounts employees are entitled to borrow from banks for housing, car and student loans are substantially increased under the new terms.

Etyk said the agreement will be presented to general assemblies in all provinces on Tuesday, December 23, 2025, when members will vote on whether to approve it.

Among other provisions, the agreement introduces common salary scales across all banks and differentiates the contribution rates of banks to Etyk’s health fund.

The agreement applies to all bank employees and, according to Etyk, and ensures industrial stability for the next two years, something it said would be beneficial for both banks and their staff.