Ulster Bank workers will receive a 7% pay increase next year if they accept proposals negotiated between the bank and the Financial Services Union (FSU).

Under the deal a cost of living payment of €1,150 for those in the Republic of Ireland, or £1,000 for those working in Northern Ireland, would also be paid in January to staff on grades A, B and C.

It follows an agreement reached between employees and the bank which delivered a 4% pay increase in April this year.

It was followed by a 4% cost of living pay increase in September for those earning under €45,300 or £32,000.

"The FSU and Ulster Bank have been in intense pay talks for the last number of months," said Gareth Murphy, Head of Industrial Relations and Campaigns with the FSU.

"Those talks have now produced a comprehensive set of proposal which we believe is a positive outcome for our members."

Staff at the bank will not be balloted on the proposals, beginning next Monday and closing on December 16th.

The union is recommending that they accept the deal.

The development comes as Ulster Bank continues to wind down its operations in Ireland ahead of its planned exit.

It recently began the process of closing the accounts of customers who had not acted to shut them themselves, despite having had six months notice.

Ulster Bank also recently announced details of two voluntary redundancy programmes which will see about 600 staff leave the bank as part of its withdrawal.

Hundreds of other workers have and will continue to transfer to Permanent TSB and AIB as part of asset sale deals.