Piraeus Bank will inaugurate Greek credit institutions’ latest round of early retirement packages in the coming period, as the former’s plan was approved on Wednesday by the Hellenic Financial Stability Fund.
Piraeus Bank will inaugurate Greek credit institutions’ latest round of early retirement packages in the coming period, as the former’s plan was approved on Wednesday by the Hellenic Financial Stability Fund.
All four Greek systemic banks have announced early retirement plans as a way of reducing payroll costs, following this year’s latest recapitalization of the four.
Piraeus wants to reduce 1,500 employees from its payroll.
This plan will be “targeted”, according to reports, as most employees close to retirement over the past decade have already taken advantage of previous such programs.
Initial reports state that the maximum severance payout will reach between 180,000 to 200,000 euros. Piraeus’ provision in Q4 for the scheme was 110 million euros, while it will recoup the money in two years, given that the plan will slash 52 million euros off its payroll per annum.
Two options will reportedly be offered: the first offering compensation in case of an immediate resignation and the other offering a two-year paid sabbatical followed by the resignation.
The emphasis will be on enticing employees over the age of 40, which account for 54 percent of Piraeus’ workforce today, as well as on staff-members in regional branches and branches that are scheduled to close.