FRANKFURT, April 28 Deutsche Telekom's has agreed a pay rise for the 17,000 staff at its Bonn headquarters of 6.5 percent over the next two years.
Employees will get an extra 2.3 percent this year and two hikes of 2.1 percent each in 2013, the company and German services trade union Verdi said in separate statements on Saturday.
Deutsche Telekom had earlier offered a 3.5 percent pay rise plus a one-off payment. Verdi had demanded 6.5 percent more for 2012 alone.
Verdi has been pushing hard for bigger pay rises following years of restraint among German workers, which boosted the competitiveness of Europe's largest economy relative to its euro zone partners.
Verdi helped secure a 6.3 percent pay increase over two years for 2 million public sector workers last month.
Like workers in other industries, employees at Deutsche Telekom have staged strikes in the row over pay.
The company and unions are still negotiating over pay at bigger divisions, including at T-Systems with 18,500 staff and Telekom Deutschland with 50,000 staff. (Reporting by Arno Schuetze; Editing by Louise Ireland)