CYPRUS: HB staff offered tax-free redundancy package

Hellenic Bank staff will be offered a tax free redundancy package as part of the voluntary retirement plan announced last Friday.

Eligible for the package are all staff with at least one year’s of service.
The payout will not exceed 80% of gross salaries which would be paid to any staff member from the date of the gratuitous amount until the date of their normal retirement.
Employees who will accept the voluntary retirement plan and have completed 30 years of service will be entitled to two years of annual remuneration.
The bank, according to a circular, will continue providing health care coverage through the payment of employer contributions to the union’s health fund (TYETYK) until December 31, 2016 for members of staff who will retire under the plan.
The submission of applications ends on December 18.
This is the second voluntary retirement plan implemented at Hellenic after the banking crisis and the events which followed Eurogroup decisions of March 2013.
In July 2013, the bank announced a voluntary retirement plan which led to 165 staff leaving, costing EUR 9.6 mln in compensation.