The majority of staff in Bank of Ireland are set to receive pay increases of about 2.2 per cent next year and a further 2.6 per cent in 2017.
The report of an independent mediator has recommended that there should a general increase for personnel and a separate rise based on performance.
The general increase for 2016 has been recommended at a level of 0.9 per cent with a further rise of 0.975 per cent in 2017.
Mediator Martin King has proposed that the first general increase should come into effect next April but be backdated to January.
Performance pay is based on where an employee of Bank of Ireland is placed on a scale involving five possible ratings.
Staff deemed to have underperformed or not fully met expectations will not receive any performance -related increase in pay.
The mediator in his report said that the general review salary rise should apply to staff who were considered not to have fully met expectations.
Those classified as fully meeting expectations - which is understood to cover the majority of staff at the company - will receive an additional increase of 1.3 per cent in 2016 and 1.64 per cent in 2017 on top of the general review pay rises.
Members of the finance union IBOA in Bank Of Ireland are now expected to vote on the new pay proposals in a ballot to be held after Christmas.
The union's general secretary Larry Broderick said the mediator's recommendations had come after weeks of intensive negotiation between the parties.
“While the final decision on the proposals will be taken by our members in Bank of Ireland in a ballot in the New Year, the outcome of our engagement with the employer is a further positive sign of the return to more normal collective bargaining in this employment following the consolidation of the bank’s return to profitability,” he said.
Bank of Ireland declined to comment on the mediator’s recommendations.
However, the company confirmed that it is also in negotiations with the SIPTU and Unite trade unions in Ireland regarding their members. In addition, the bank has engaged with Partners’ Council in the UK regarding employees there.
“With respect to grades/units where union representation is recognised, considerable work has been undertaken on this arrangement, including engagement with staff representative bodies,” the bank added.
The IBOA is also in direct negotiations to secure a pay rise for AIB staff for 2016. AIB staff received a 2 per cent rise for this year.
