AIB and FSU Finalize 2025 Pay Deal: Increases Up to 7%, €1,500 Voucher, Extra Leave

AIB and the Financial Services Union (FSU) have agreed on a pay deal for 2025. The deal includes pay increases of 4% to 7%, depending on job grade, and a minimum payment of €2,000 for all employees.

Each staff member will also receive a €1,500 voucher and an additional day’s paid leave in 2025. Entry-level pay will rise by 7% to €30,000.

Negotiations concluded earlier this week. The FSU will start a ballot for union members on Monday, December 2, which will last for two weeks and end on December 16. The FSU recommends this agreement as it addresses inflation and cost-of-living pressures.

AIB stated that the 4% pay increase is based on performance. The agreement also settles a claim for a 35-hour workweek. In return for dropping this claim, employees will receive the tax-free voucher and an extra day off.

What are teh key benefits of the new pay deal for AIB employees in 2025?

Interview with David McCormack, Chief People officer at AIB, on the New Pay Deal for 2025

News directory 3 (ND3): Thank you for joining us today, david. The recent pay deal agreed upon by AIB and the Financial Services Union is significant. Can you elaborate on the key components of this agreement?

David McCormack (DM): Absolutely, and thank you for having me. The new pay deal for 2025 includes a range of enhancements for our employees. We’ve set out pay increases between 4% and 7% based on job grades, with a guaranteed minimum raise of €2,000 for all employees. Additionally, we’re excited to offer a €1,500 tax-free voucher and an extra day of paid leave within the year.

ND3: That’s quite a complete package.Could you clarify how the pay increases will affect entry-level positions specifically?

DM: Certainly. Entry-level pay will see a significant increase of 7%,raising the starting salary to €30,000. It’s essential for us to ensure that our entry-level employees feel supported and compensated fairly as they embark on their careers with us.

ND3: The financial Services Union has noted that this deal addresses inflation and cost-of-living pressures. How does AIB factor these economic challenges into its compensation structure?

DM: We recognize the realities of inflation and the rising cost of living; it’s a shared concern for many of our employees. This agreement is a response to those pressures.Our aim is to ensure that our employees feel valued and supported, notably as they navigate economic challenges. We believe the outlined pay increases and additional benefits will provide meaningful relief.

ND3: In addition to financial enhancements, what other benefits does this deal entail?

DM: Alongside the pay increments, we’re proud to introduce ten days of foster parent leave and menstrual health support, addressing important aspects of our employees’ well-being. Furthermore, we’re committing to reviewing our compassionate leave programme, reflecting our commitment to supporting employees during difficult personal times.

ND3: How important is employee support and engagement in the context of this agreement?

DM: It’s critical. We understand that satisfied employees are more productive and engage better with their work. This compensation package is intended not only to reward performance—specifically the 4% increase which is performance-based—but also to enhance our workplace culture and support those who may feel the impact of being lower-paid.

ND3: The FSU will begin a ballot for union members shortly.What is your hope for the outcome of this vote?

DM: I hope the union members see the value in this deal as we do.It represents a mutually beneficial understanding that takes into account performance, the current economic landscape, and the workplace environment. Our aim is for this agreement to be endorsed, promoting stability and assurance for our workforce moving forward.

ND3: Thank you for your insights, David. It sounds like a significant step for AIB and its employees.

DM: Thank you. We truly believe this agreement strengthens our commitment to our staff and enhances our overall workplace.

Other benefits include ten days of foster parent leave, menstrual health support, and a review of the compassionate leave program.

David McCormack, Chief People Officer at AIB, emphasized the importance of employees. He expressed satisfaction with the pay agreement, which supports lower-paid staff and resolves productivity issues while enhancing employee support.