A new deal will increase some 10,000 workers income by an average of 5.5%
Up to 10,000 AIB employees are set to benefit from average pay increases of 2.75% over each of the next two years commencing in early April - leading to an overall increase of 5.5%.
The deal, brokered by the Workplace Relations Commission is being recommended by the Financial Services Union (FSU) - it will be put to a vote by the bank's staff.
An existing job security deal will also be extended until the end of 2018.
General Secretary of the Financial Services Union, Larry Broderick stated, "The deal on offer will provide staff with a 5.5% pay increase over two years. We have fought hard in these negotiations to win recognition for the dedication and loyalty of AIB staff.
"The fact that the bank is returning to profitability and is likely to pay a dividend to the State this year is in no small part due to the role staff played in restoring the bank’s fortunes."
AIB also commented: "AIB Group has been in ongoing discussions with the FSU over the last number of months on reward arrangements for 2017. The Workplace Relations Commission has assisted with these discussions and has put forward a recommendation for acceptance by both sides."