Bank of Cyprus, the island’s largest lender, said that it offered its workers a voluntary retirement scheme which provides compensation of up to €200,000 per retiring worker.
“All permanent workers and workers at its subsidiaries have the right to participate after having completed at least one year in service,” Bank of Cyprus told its workers in a circular according to a document obtained by the Cyprus Business Mail. “The bank maintains the right to accept or reject any request at its absolute discretion”.
The Cyprus Business Mail understands that the bank, which currently employs 4,610 workers, wants to decrease its staff by 250 in order to increase its efficiency, reduce payroll and reorganise its structure and aims mainly at older, highly-paid members of its staff.
Workers who will seek to take advantage of the offer will receive 50 per cent of their monthly salary for every year of service at the bank, if they served for less than 15 years, the bank said.
Compensation will increase to 75 per cent of their monthly salary for every year of service for the next 15 years a worker was employed at the bank and workers who worked from more than 30 years at Bank of Cyprus will receive 125 per cent of their salary for every year in service.
“In addition, four monthly salaries will be paid” to everyone who will benefit from the scheme, Bank of Cyprus said adding that the maximum amount of compensation to be paid cannot exceed 70 per cent of the remaining earnings until retirement.
Beneficiaries will also be entitled of medical care and life insurance until the end of 2016, the bank said.
It is the third retirement scheme offered by Bank of Cyprus since the end of 2012. In 2013, a total of 1,577 workers opted in favour of two separate retirement schemes, with the bulk of them doing so after the banking crisis.