Workers in Bank of Ireland have voted to accept a new pay deal, which will see them receive an increase of 2.2% in 2016 and 2.61% in 2017.

It follows negotiations between the IBOA and the bank’s senior management with the assistance of independent mediator, Martin King.

"At a time when Bank of Ireland is back into profitability, it is important that the key role played by staff in the success of the bank is recognised" said IBOA General-Secretary, Larry Broderick.

"This recommendation is significant in that it differentiates between the need to provide compensation for cost-of-living changes and to reward performance improvements".

The deal follows an agreement concluded at the end of 2014 on a new career and reward framework in the bank.

"The onus is now on the employer to ensure that this new structure is implemented in full so that opportunities are made available for staff to progress personally and professionally for the good of the bank and its customers", Mr Broderick added.

The IBOA has also begun balloting its members in Ulster Bank on a new pay offer, which would give them an average increase of 2% for 2016.