AIB and the Financial Services Union (FSU) have agreed a pay deal that recommends a 10% increase over the next three years for non-manager staff.
The agreement will also increase the entry level salary at the bank to a minimum of €28,000.
Members of the FSU will now be balloted on the pay deal.
"These negotiations were long and tense and there were times throughout that it looked like we would not come to an agreement," said John O'Connell, General Secretary of the FSU.
"The FSU were conscious of the difficulties that our members are experiencing with the rising cost of living and their anxieties of an ever-changing banking sector," Mr O'Connell said.
"This agreement, if carried by our members would give certainty on pay for the next number of years and a ten percent pay increase to the majority of workers in AIB," he added.
The ballot of FSU members in AIB will start tomorrow and conclude on 20 May.
"We are delighted to have reached agreement with the FSU on a three year pay deal, subject to ballot, that provides certainty on pay for our people over the coming years," said AIB's Chief People Officer Geraldine Casey.
"This deal recognises the vital contribution that our colleagues make to the success of our business and their tireless work to support our 2.8m customers," she added.
