Tesco workers around the country have voted in favour of a 2 per cent pay rise, giving more than 14,000 employees a bump in their pay.

The 2 per cent hike includes a 1 per cent rise backdated to march 1st this year, with the additional 1 per cent increase due to come into effect on September 7th. It will mean an average payout of €400 and €700 for staff.

Members of Mandate Trade Union in 147 stores in Ireland backed the pay deal by a margin of 88 per cent.

Mandate assistant general secretary Gerry Light the deal did not include any concessions from staff, and was in recognition of its members' hard work.

“This is a very significant agreement coming from the biggest retail employer in the country and we very much see it as a benchmark for other retail employers in Ireland,” said Mr Light.

“Recognising the fact that Tesco are facing many challenges in the marketplace, Tesco still see the value in giving their workers a pay increase and this is something other employers should take note of.”