The EBS will offer staff interest-free loans to compensate them for non-payment of a traditional Christmas payment worth a month's salary.
The loans are understood to be subject to a 12.5% benefit-in-kind tax however.
Staff were told yesterday that they would not receive the payment known as the "13th month" because of rules governing AIB, which merged with EBS in July.
The company acknowledged that the 13th month Christmas bonus is specified in the employees' contracts.
He said that it was not pensionable and staff leaving before the Christmas payroll run in any given year would not receive the payment.
Asked why managers would continue to get a "13th month", sources said their payment was "base salary", which they could choose to have paid over 12 or 13 months, but was not a bonus.
They pointed out that managerial staff had not received performance related bonuses since 2008, while lower grades had received their Christmas payment up to this year.
Company sources said they were conscious of the late notice to staff that they would not receive the payment and acknowledged that staff were deeply hurt and angry.
The company is offering staff an interest-free loan for the equivalent of the Christmas payment, which can be repaid over 12 or 24 months.
A Department of Finance spokesperson said that given the significant cost to the State of the financial assistance to Irish banks, which has protected jobs in the sector, the Government insisted as part of the Placing Agreement [signed in July 2011] that no new bonuses would be paid.
He said this was based on clear legal advice.
Department sources also said the issue of payment of EBS Christmas bonuses was raised with the department in late October/early November.
They said it was made clear to HR management at that time that bonus payments were prohibited under the placement agreement.
Staff at the EBS financial institution are to ballot for industrial action.
Colm Quinlan of the UNITE trade union said said the average earnings of those affected were about €30,000.
The union is to ballot for strike action in the week before Christmas.
