Dublin - After 22 hours of negotiations, the Irish government said Wednesday it had managed to agree a 6-per-cent pay increase with workers for the next 21 months.

The deal would be paid in two phases following an initial pay freeze, a statement from Prime Minister Brian Cowen's office said.

Private-sector workers would receive a 3.5-per-cent rise for six months, then 3.5 per cent for the following year after an initial three-month freeze.

Public sector workers' wages would be frozen for 11 months, then they would receive 3.5 per cent for nine months and 2.5 per cent for the final month, the statement said.

Those earning less than 22,463 euros (32,000 dollars) a year would receive an extra 0.5 per cent at the end of the agreement.

Much of Ireland's recent economic success has been attributed to its reformed process of pay negotiation between government and workers, known as the social partnership, that in the 1990s ended decades of industrial strife.

The last national pay agreement in 2006 offered pay rises of 10 per cent over 27 months. The vast majority of Irish employees are covered by the deal.

Prime Minister Brian Cowen faced off demands for large pay increases as rising fuel and food costs ate away at pay packets, pointing to the worsening economic outlook in Ireland.

"The national pay agreement will give a sense of confidence and stability in the challenging period ahead," national broadcaster RTE quoted Cowen as saying Wednesday.

"The negotiations were very lengthy and complex and the social partners made commendable efforts to enable the terms of a draft agreement to be identified."

Employers and opposition parties have welcomed the deal, which will now need formal approval from trade union members. (dpa)