Piraeus Bank launches payroll cost-cutting plan

Piraeus Bank announced a plan to cut its payroll cost by implementing a cost-cutting programme, offering its employees the option of taking a long-term leave – with a duration of one to three years – and ensuring return to their posts afterwards.

The programme is addressed to 5,094 bank employees and to 1,611 employees in Piraeus Bank subsidiaries in Greece, with the aim to expand the programme to the group’s subsidiaries abroad (total workforce of 6,757 employees). The bank’s employees have a deadline of responding by Dec. 15.

Bank’s officials said the plan could save up to 20 million euros a year even if only 5.0 pct of its employees accepted the option.

Under the terms of the programme, an employee taking a leave would be paid 40 pct of an annual gross salary (one year leave), 45 pct for two years and 50 pct for three years, while Piraeus Bank will pay all employers’ contributions to pension funds.