Barclays has reached an agreement with trade union Unite that will deliver a 5.35% pay increase to around 20,000 employees in the UK. The deal follows negotiations between the bank and the union and was approved by Unite members.
The agreement applies to workers below the vice president level in the UK, including staff in branches and head office functions. It does not cover employees working in the investment banking division.
According to Unite, members voted overwhelmingly in favor of the offer after discussions with Barclays. The union said the agreement represents a leading pay settlement within the finance sector and covers a significant portion of the bank’s UK workforce.
The announcement comes at a time when pay and rewards in the banking industry continue to attract attention, particularly as major lenders balance staff compensation, bonus payments, and wider business performance.
Unite Members Approve Deal After Negotiations With Barclays
The pay agreement was reached following negotiations between Barclays and Unite, which represents around 35,000 workers across the bank. According to Unite, the proposal received strong backing from its members during the voting process.
The 5.35% increase is understood to apply to employees below the vice president rank in the United Kingdom. This includes staff working in branches and at the bank’s head office. Employees in the investment banking division are not included in the arrangement.
Barclays welcomed the outcome of the talks. A spokesperson for the bank said it was pleased to have reached an agreement with Unite following what were described as constructive discussions and subsequent approval by union members.
The spokesperson added that the pay package reflects Barclays’ focus on its fair pay agenda and is intended to ensure that employees are recognized in a manner that is fair, competitive, and sustainable for the organization.
According to the reported figures, the median total pay for Barclays UK employees stood at £60,603 in 2025. The latest settlement therefore affects a workforce segment that spans a range of operational and corporate roles across the bank’s UK operations.
Pay Settlement Comes Amid Wider Focus on Compensation at the Bank
The wage increase follows a year in which Barclays distributed approximately £2.2 billion in bonuses to eligible employees. According to the reported data, that total was 15% higher than the amount awarded in the previous year.
Bonus payments at major banks are generally directed toward senior executives, investment bankers, and employees whose work contributes directly to financial performance. The latest figures underline the continued importance of variable compensation within the sector.
The report also noted that Barclays chief executive C.S. Venkatakrishnan received a total pay package of £15 million, including fixed pay and bonus awards. That figure was up from £11.6 million in 2024.
Barclays was also the first UK bank to remove a cap on bankers’ bonuses in 2024. The restriction had previously been imposed under European Union rules. The change gave certain senior bankers the opportunity to earn bonuses worth up to ten times their base salary.
According to the report, Barclays expected around 1,600 employees classified as “material risk-takers” to be affected by that policy change. Against that backdrop, the newly agreed pay rise for thousands of UK employees marks a separate development in the bank’s broader approach to compensation across different parts of its workforce.
