Bank of Cyprus announces small-scale voluntary exit scheme

Bank of Cyprus has launched a new targeted voluntary exit scheme for up to 40 employees, following a similar program in 2025 that saw 110 departures at a cost of 19 million euros. The application window opened on June 2, 2026, and remains active until June 19, 2026. Eligible staff must be at least 55 years old or have completed 25 years of service at the banking group. Compensation up to 200,000 euros is tax-free, while amounts exceeding this threshold are subject to a 20 percent tax under current tax reform laws. All payments are subject to a 2.65 percent contribution to the General Healthcare System (Gesy). Employees aged 60 or older receive an additional 10 percent bonus on their compensation and retain health and life insurance benefits until retirement age. CEO Panikos Nicolaou noted that large-scale exits have currently ceased, and personnel costs in the first quarter of 2026 rose by 4 percent due to salary increases.