Permanent TSB has announced that all staff will see a pay increase in the next two years along with a number of other improved benefits.
The bank has been in talks with unions in recent months and has agreed upon a "progressive two year pay for performance deal" of 6.5 per cent, with a 3.5 per cent increase in the first year followed by a 3 per cent increase in the second year.
As a part of the plan, the minimum starting salary for all entry-level or graduate staff will also increase from €25,000 to €27,500.
READ MORE: Will I get a pay rise in Ireland in 2022? Predictions of which sectors will see pay go up
Any staff paid less than €27,500 will have their salary adjusted to the new minimum.
The bank will also introduce a string of new benefits, including a change to the bank's pension scheme, focused on delivering enhancements for staff nearing retirement age.
A once-off "wellbeing day" will also be offered to all staff and can be taken at a time agreed with the employee's manager during 2022.
The existing marriage leave arrangement will also be altered to be more inclusive and will now be referred to as a "life leave arrangement".
Permanent TSB staff will also benefit from an increased maternity leave benefit from 18 weeks to 26 weeks, during which staff will be on full pay less social welfare.
Sick Leave will also be enhanced to provide staff with "increased pay certainty" if they fall ill at an early point in their career with the bank.
A spokeswoman for the bank said: "Over recent months, we have been engaged in constructive conversations with employee representative bodies on a new colleague pay and benefits deal," she said.
"These conversations have taken place against the backdrop of significant market, societal and economic uncertainty.
"In this context, we sought to agree an affordable and progressive deal for colleagues that included meaningful base pay increases along with an enhanced suite of colleague benefits.
READ MORE: More than 10,000 people applied for 1,200 Garda jobs
READ MORE: Major pay rise on the way for one sector of Irish workers under new law
Get breaking news to your inbox by signing up to our newsletter.
