Enhanced benefitsLuxembourg banking sector unions secure new collective agreement

A significant milestone was achieved in the banking sector on Thursday, 11 July. Trade unions, including the Luxembourg Association for all Employees with a Need for Assistance (ALEBA), the Independent Luxembourg Trade Union Confederation (OGBL), the Luxembourg Confederation of Christian Trade Unions (LCGB), and the Luxembourg Bankers’ Association (ABBL), announced significant progress on a new collective agreement for sector employees.

“The final texts are now at the approval stage” and will cover the period from 2024 to 2026, the trade unions stated in a press release. The new agreement emphasises employability and aims to reward the “loyalty and commitment” of banking employees.

The new agreement includes a section dedicated to perks and bonuses for employees. These include a one-off bonus of €500 to be paid to “all employees” in January 2025. There will also be an increase in the severance bonus.

Additionally, the new agreement includes a chapter on training, with a larger budget allocation for employers and a minimum provision of 16 hours of training per year per employee. The agreement also introduces measures to improve work-life balance.

Key provisions in the agreement:

• Exceptional one-off bonus of €500 to be paid to all employees in January 2025;
• Increase in loyalty bonuses;
• Financial package to reward employee commitment to be distributed in 2024, 2025, and 2026;
• Increased departure amounts and thresholds for the four employee groups.
• Improved recognition of skill acquisition.
• A minimum budget for outplacement training set at €5,000, with a maximum of €8,000.
• A 10% increase in the annual training budget.
• An individual training allowance of at least 16 hours per year.