German postal workers reached a collective bargaining agreement on Tuesday, with wages set to rise by 2% in April.
The deal, announced by German postal company Deutsche Post and the verdi trade union, will see some 170,000 workers receive an immediate boost in salary next month before a further 3% rise in April 2026.
Negotiators found a consensus after four rounds of talks and a series of strikes, with employees set to receive a further day of holiday from 2026.
The agreement is valid for two years, beginning retroactively on January 1.
"Following a very high collective agreement in 2023, we are now implementing further wage increases that will maintain our employees' purchasing power," said Deutsche Post human resources officer Thomas Ogilvie.
The deal was reached after marathon negotiations that began on Monday morning.
Union officials had initially demanded a 7% pay rise and three further days of paid leave.
Thousands of employees in parcel and mail centres, as well as delivery workers, took part in strikes across Germany in recent weeks, causing disruption to the postal network and putting pressure on the company to reach a deal.
"This is a decent result that could not have been achieved without the pressure and strong willingness of our members to strike," added Andrea Kocsis, lead negotiator for verdi.
Deutsche Post is a division of logistics giant DHL Group.