Permanent TSB (PTSB) and its staff unions have reached a new pay agreement for 2025, concluding months of extensive negotiations and mediation. The deal includes a 4% salary increase for employees, split evenly between a general pay rise and performance-based compensation.
The agreement, which has been accepted by members of the Financial Services Union (FSU), Mandate, and Unite, will be backdated to January 1, 2025. It also includes an increase to the bank’s entry-level salary, which will now stand at €29,580. In addition, minimum and maximum pay scales across all grades will see upward adjustments.
PTSB and the unions confirmed the deal in a joint statement, highlighting the role of an independent mediator in facilitating the outcome.
“The bank and group of unions welcome the acceptance of this pay agreement by the members and acknowledge the extensive work and effort that took place between all parties to reach this agreement,” the statement said.
A key element of the deal is a planned review of the bank’s current Performance Evaluation System. A special representative group will be established to carry out this work from July through December 2025, with the aim of improving how performance-related pay is determined and applied.
The new pay package is seen as a significant step in improving industrial relations at the bank, following what sources described as a complex negotiation process shaped by cost-of-living pressures and employee concerns about fairness and career progression.
Union representatives welcomed the outcome, describing it as a “balanced agreement” that recognises both staff performance and the need for sustainable pay structures.
PTSB, which has undergone a number of structural changes in recent years, said the new pay deal reflects its commitment to maintaining a competitive and equitable reward system for employees as the bank continues to grow its business and workforce.
The agreement comes amid broader wage negotiations across the financial services sector, where inflation and rising housing costs have placed pressure on employers to boost staff compensation. The involvement of three major unions and an independent mediator underlines the significance of this latest settlement.
With this deal now in place, attention will turn to the review of the performance evaluation framework and how future pay progression will be managed within the bank.
