EMCC European Monitoring Centre on Change

Bank of Cyprus (BoC)

Bank of Cyprus (BoC)

Geographic Location

Country: Cyprus
Region: Kypros / Kibris


Sector: Financial services
Financial and insurance activities
64.1 - Monetary intermediation
Number Employed: 4155

Employment Effects

Announcement Date: 04-10-2019
Planned Job Reductions min: 400
Planned Job Reductions max: 400
Type of Restructuring: Internal restructuring
Employment Effect Start: 04-10-2019
Foreseen End Date: 18-10-2019
Other Job Reduction Measures: 400

Additional Information

Bank of Cyprus (BoC), one of the largest banking and financial services group in Cyprus, announced a voluntary retirement scheme for 400 employees. The reason behind the decision are cost reduction measurements recommended by International Monetary Fund (IMF). The participation in the scheme is open to employees close to the retirement age of the country, who have at least five years of working experience in the bank. The offer entered into force on 4 October and is expected to end on 18 October 2019.    

The bank will provide lamp-sum compensation, which will be calculated based on the years of service, the annual salary and age of the applicant. The upper limit of the compensation will not exceed 70% of the remaining salaries up until the retirement of the applicant, up to a maximum of €200,000. A prolonged healthcare provision for the staff participating in the Health Fund Scheme is also offered up to two years after leaving. The compensation will not be subjected to taxes, which is already approved by the Commissioner of Taxation. According to the press releases, the Cyprus Union of Bank Employees (ETYK) is expected to support the Scheme. 

The bank underwent similar restructuring in 2012, 2013 and 2016.