Banks throughout Europe are racing to draw up new salary deals with staff and executives before the end of the month in order to comply with new EU limits on bonuses.

Annual salaries are expected to soar for bank staff following the new regulations capping bonuses at no more than an employee’s annual salary, or, in unusual circumstances, twice the annual wage.

The new regulations will come into force from January 2014, with banks eager to establish pay terms ahead of shareholder meetings and before the close of the financial year, which ends in March.