The United Services Union (Ver.di) Saturday announced that it has reached a bargaining agreement with the German government for over 2.5 million workers in the federal and public services. The agreement comes after a lengthy dispute for pay raises in reponse to high inflation, which reached 7.4 percent in March.

The agreement stipulates that employees will receive a one time tax and duty free payment of 3,000 Euros. The payments will consist of 1,240 Euros in June, followed by monthly payments of 220 Euros. The payments will also be followed by a 5.5 percent pay raise. Ver.di pioneered the negotiations, initially seeking a 10 percent pay raise. While concerns were raised about the length of this long-term plan, Ver.di chairman Frank Werneke stated that the decision was a “compromise” that creates a “sustainable increase in income.” Werneke also highlighted the benefits being provided to trainees now as a result of the agreement.

The agreement comes several weeks after a series of strikes involving nearly  half a million workers. The nationwide strikes were described as “mega strikes,” as they involved two of Germany’s largest transport unions, daycare staff and public servants. The strike resulted in airport and daycare closures.