The Financial Services Union (FSU) will ballot members at AIB this week on a set of pay proposals that would provide a 3.5% increase. The proposed rise is split evenly, with a 1.75% fixed increase and a 1.75% performance-related element, and also includes a tax-free €1,000 voucher.
Under the deal, eligible staff would receive a minimum payment of €1,500, with priority given to the bank’s lowest paid workers. FSU Head of Industrial Relations and Organising Gareth Murphy said the proposals follow intensive negotiations over the past two weeks.
“Following intensive negotiations, we have reached a set of pay proposals to put forward to members in AIB to ballot,” Murphy said. “These are recommended and supported by the FSU.”
In addition to the pay increase, the bank has agreed to cover the cost of the increased Vhi health insurance premium, approximately €600, which is of significant value to staff in the Republic of Ireland. Murphy added that the union expects a full variable pay payout of 5% this year, alongside the proposed increase.
The ballot of FSU members opens on Friday, 13 February, and will remain open for two weeks.
AIB said the agreement also includes a commitment to ongoing collaboration and change during the term of the deal. Chief People Officer David McCormack emphasised the role of staff in the bank’s success.
“AIB’s success is the consequence of the great work and dedication of all our colleagues,” McCormack said. “That’s why we’re pleased to propose a pay agreement which recognises their important and valuable contribution.”
He highlighted that the deal is designed to ensure colleagues, particularly those on lower salaries, are rewarded for their efforts. “This deal ensures our colleagues, particularly our lowest paid, are duly rewarded for the efforts they go to in building a more sustainable future for our 3.4 million customers and the communities we serve,” he added.
Take-up of industrial and logistics space in Dublin in Dublin increased by 81% in 2025, highlighting a broader trend of growth in key sectors that contribute to Ireland’s economy, as companies continue to invest in both human and physical resources. Analysts said these developments underline the importance of competitive pay and incentives in retaining skilled staff, particularly as businesses expand operations and face rising costs.
The FSU and AIB said they hope the ballot will be completed smoothly and that the proposals will receive strong support from staff, marking a step forward in negotiations and recognising employees’ contribution to the bank’s ongoing performance.
