Hellenic Bank has decided to extend its voluntary exit scheme by six days, allowing employees to submit their applications until March 11, it emerged on Wednesday.

According to a report from Stockwatch, citing sources within the bank, the decision to extend the deadline aims to increase the number of employees opting for the scheme, as participation so far has fallen short of the bank’s expectations.

Late on Tuesday, reports indicated that approximately 150 employees had accepted the offer, a figure significantly below the bank’s initial target of 400 staff departures, which primarily focuses on older and lower-performing employees.

The bank has already informed its staff about the extension through an internal circular.

The scheme, which was originally set to close at midnight on Tuesday, has been prolonged in an effort to encourage more employees to take part.

Another option under discussion is postponing any further workforce reduction plans until after the completion of Hellenic Bank’s merger with Eurobank, at which point the newly unified entity could assess staffing requirements and potentially introduce a new exit scheme.

Hellenic Bank has already begun relocating employees to centralised services as part of the restructuring process ahead of the merger.

This follows recent transfers to customer contact centres in Nicosia and Limassol to meet operational demands.

Under the voluntary exit plan, eligible employees could receive a maximum lump sum of €200,000, calculated based on age, years of service, and salary.

The compensation is tax-free, though the bank has emphasised that this will not be the case in future exit schemes, as upcoming tax reforms are expected to introduce taxation on severance payments across the public and banking sectors.

Hellenic Bank previously ran a voluntary exit scheme in 2022, through which 450 employees departed, representing 17 per cent of its total workforce at the time.

The bank has indicated that this current scheme is its last, though the merger with Eurobank may influence future decisions regarding staff reductions.

*This article is a translated version of content originally published on StockWatch.