The cabinet and unions have reached a provisional pay rise agreement for the 160,000 staff who work for the Dutch central government, ending a months-long dispute that disrupted the tax office, customs and the immigration service in mid-April.

Under the deal, all civil servants would receive a 2.7% pay rise from 1 July, backdated to 1 January. Lower-paid staff would also get a one-off payment of €1,400, dropping to €1,000 for those on the highest pay scales. The one-year agreement would run until 31 December 2026.

The deal drops a pay freeze imposed by the previous cabinet, which the unions had described as a “pay diktat”.

The FNV, CNV and the two smaller civil service unions called the result a breakthrough but said they had hoped for more. Members have three weeks from Monday to vote on the offer. If they approve it, it becomes binding.

Home affairs minister Pieter Heerma, who had said in mid-April that he was bound by political backing for the pay freeze, reopened talks shortly after more than 6,000 civil servants walked out on 14 April. The strike forced parliament to cancel debates and caused disruption at the tax office and student funding agency DUO.

The deal does not resolve the broader stand-off between the country’s main unions and the centre-right cabinet over plans to raise the retirement age and shorten unemployment benefits, which the FNV, CNV and VCP have warned could trigger further action.