The cabinet finally reached agreement with unions on Friday evening on public sector pay and conditions.
The 120,000 public servants such as teachers, police officers and military personnel will receive a 5.05% pay rise over this year and 2016.
In addition, they will be given a €500 one-off payment in September of this year, the Telegraaf reported.
Public servants have not had a new pay and conditions agreement for four years and their pay was frozen. Negotiations were put on hold at the end of April, but parliament demanded they were restarted.
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