AIB has accepted the recommendation of the Labour Relations Commission in relation to redundancy payments.
The bank's Chief Executive David Duffy wrote to staff today confirming the news.
Mr Duffy said the bank will begin taking applications for early retirement and voluntary severance this Wednesday.
AIB is aiming to cut its workforce by 2,500.
He said: "We will be as flexible as possible in facilitating staff requests, but the final decision on the application acceptance and timing must rest with the bank."
