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HB: Tax free lump sum as a lure

24/11/2015 10:33
The lump sum to be paid to employees of the Hellenic Bank will be tax free as a lure to join the voluntary retirement plan announced last Friday by the bank.

According to a circular issued by the HB administration to staff members, anyone who has completed at least one year working at the Bank can participate in the plan.

The plan provides for a gratuitous lump amount representing ex gratia payment for the termination of service and career loss for each employee to retire under the plan.

This sum will not be subject to taxation after obtaining a relevant affirmation from the inspector of taxation.

To determine the amount to be offered to each member of staff, both the basic salary and ATA before any deductions or contributions will be used as parameters, as well as the months of service.

The lump sum to be paid will not exceed 80% of gross salaries which would be paid to any staff member from the date of the gratuitous amount until the date of their normal retirement.

Employees who will accept the voluntary retirement plan and have completed 30 years of service will be entitled to two years of annual remuneration.

HB and ETYK have agreed on activating a special formula for this matter.

The bank, according to the circular, will continue providing health care coverage through the payment of employer contributions to the union’s health fund (TYETYK) until December 31, 2016 for members of staff who will retire under the plan.

In case of approval of the application for participation in the special plan, the person concerned and the bank will agree on the termination of their employment relationship by signing a written agreement.

The bank will have the absolute right to accept or reject each request.

The submission of applications ends on December 18.

It is the second voluntary retirement plan implemented at the Hellenic Bank after the banking crisis and the events which followed Eurogroup decisions of March 2013.

In July of 2013 the Hellenic Bank announced a voluntary retirement plan which led to 165 staff members leaving, taking in total €9,6 mn as compensation.