Bank of Ireland workers are to receive a series of pay increases under proposals, in return for greater flexibility and revamped workplace structures.

Staff are set to be balloted on the changes, which are being recommended by the banking trade union IBOA. 

Under the proposals, salaries would increase by 1.75%, back dated to July 2014, and by 2% from January next year. 

Staff would also receive a lump sum of 5% of their current salaries at the end of this year. 

The bank has restructured its pension scheme and reduced its staff numbers by 4,600 since 2008. However, pay was not cut during the crash. 

IBOA head Larry Broderick said the proposals "acknowledge the major sacrifices made by Bank of Ireland employees over the last six years".  

The bank said an agreement would lead to a "more streamlined and standardised organisational design" for the company. 

Senior management at Bank of Ireland, including CEO Richie Boucher, are excluded from the pay proposal.