Bank salaries on the rise but overall take-home pay plummets

Staff at banks covered by the State have seen their basic salaries increase since 2008, but their total levels of remuneration have plummeted because bonuses and other benefits have been scrapped.

The Mercer report on bank pay, commissioned by the Department of Finance, shows senior managers have taken bigger salary cuts than clerical staff on a pro rata basis. Moreover, bank staff are underpaid compared with EU averages and executives of Irish PLCs.

However, the sector is still loss-making and the banks will have to cough up between 6% and 10% in pay and pension cuts in an effort to reduce the overall cost base and return to profitability.