The Financial Services Union (FSU) is to ballot members at AIB on pay proposals that include a 3.5% increase.
It will be split between a 1.75% fixed increase and a 1.75% performance-related increase.
The deal also includes a tax-free €1,000 voucher.
The proposals will see eligible staff receiving a minimum payment of €1,500, with the bank’s lowest paid workers being prioritised.
“Following intensive negotiations over the last two weeks we have reached a set of pay proposals to put forward to members in AIB to ballot,” said FSU Head of Industrial Relation and Organising Gareth Murphy.
“These are recommended and supported by the FSU,” he said.
“The bank has also agreed to pay the increased Vhi premium, circa €600, which is of significant value to members in the Republic of Ireland and our clear understanding throughout the negotiations was we expect a full variable pay payout of 5% this year in addition to these proposals,” Mr Murphy said.
The ballot of FSU members will open this Friday, 13 February, and will remain open for two weeks.
AIB said the deal also includes a commitment to ongoing change and co-operation during the period of the agreement.
“AIB’s success is the consequence of the great work and dedication of all our colleagues,” the bank’s Chief People Officer David McCormack said.
“That’s why we’re pleased to propose a pay agreement which recognises their important and valuable contribution,” he said.
“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,” Mr McCormack added.
