Staff at Permanent TSB are to receive a pay increase of up to 6.5% over two years.
The deal will see up to 3.5% awarded this year and 3% in 2023, subject to agreed performance.
The starting salaries for entry level or graduate recruits are also to increase to €27,500 from €25,000.
Existing staff who are currently earning less than €27,500 will see their pay rise to this amount.
"Over recent months, we have been engaged in constructive conversations with Employee Representative Bodies on a new Colleague Pay and Benefits deal," a spokeswoman for the banks 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."
As part of the agreement the bank's staff pension will also be changed to specifically focus on delivering enhancements for colleagues nearing retirement age.
Staff are also to receive a once-off "Wellbeing Day" this year.
The bank’s existing marriage leave arrangements are also to be replaced by a new "Life Leave" arrangement, while maternity leave will increase from 18 to 26 weeks.
During that period, staff will receive full pay less social welfare.
The changes also include alterations to sick leave with all staff, subject to a minimum level of service, now becoming entitled to paid sick leave for short term and longer-term absences due to ill-health.
Staff at PTSB are primarily represented by the Unite and Mandate unions, and both unions have passed the proposals at ballot.
Permanent TSB is the latest of the main banks to strike a pay deal with staff, amid rising inflation.
Staff at Bank of Ireland look are to receive a 7.5% increase over the next two years.
While Ulster Bank has proposed a 4% increase for most workers and a 6.5% pay increase for those on medium to lower pay.