The Communications Workers' Union said it has concluded an agreement with An Post that will deliver further pay increases for staff.
It is part of a transformation programme at the company which will see the consolidation of a limited number of mail delivery offices.
The agreement will include further pay increases of 5% for postal operatives (postmen and postwomen), 3% for clerical staff, and an improved performance pay structure for managerial grades.
Staff will also receive a €750 tax-free voucher.
It follows a 5% pay increase last year and a 10.4% pensions increase for An Post staff and pensioners.
The final elements of the pension increases are awaiting Government approval.
"Our positive engagement with the company has been continuing and has resulted in further agreement on measures necessary to support the company's transformation programme that will help underpin the commercial viability and sustainability of the company’s operations for the long term," said CWU General Secretary, Sean McDonagh.
"As a result, workers at An Post will share the benefits for cooperation with the implementation of the agreed changes," Mr McDonagh said.