The ver.di union and mail company Deutsche Post AG reached the deal for some 132,000 workers Friday.
They will get a 3.1 percent increase on Aug. 1, followed by another 2.6 percent in October 2014. The deal runs through May 2015.
Ver.di went into talks seeking a 6 percent hike and staged repeated "warning strikes" in recent days to underpin its demand. In separate negotiations, the IG Metall union is currently pushing for a 5.5 percent raise over a one-year period for workers in Germany's key manufacturing sector.
The demands reflect the German economy's relative health.
MORE HBJ HEADLINES
New Jeep Renegade: Small stature, big character United dangles jet order to spur pilot pact Canadian employment climbs in September on part-time gains Apple Pay will expand to Starbucks, KFC, Chiliís SEC seeks oversight of Everett-based developer accused of fraud Swedish Edmonds nearly ready to unveil $63.5 million ER, expansion
Our new comment system is not supported in IE 7. Please upgrade your browser here.