Cabinet to approve return of bonuses for banking staff

James Cox

Cabinet is expected to approve plans to bring back bonuses for banking staff.

Pay has been capped at €500,000 at the three bailed out banks - AIB, Permanent TSB and Bank of Ireland - and bonuses have been banned since the financial crash.

But plans before Cabinet this morning are expected to allow bonuses to resume.

The cap on the salaries of Bank of Ireland staff is also expected to lift, now that the State has sold its stake in the bank.

Banks will now be able to pay bonuses of up to €20,000, according to the proposals.

The proposals are part of the Retail Banking Review, which was set up a year ago by Minister for Finance Paschal Donohoe when it became clear Ulster Bank and KBC Bank would be leaving the Irish market.