Post Office workers are set to receive a 7.3 per cent pay rise after months of negotiations between the postal union CWU and bosses.

Talks on a deal began last year are counter staff with CWU walked out across Britain in March 2013 when 88 per cent voted to strike in a national ballot.

But the news comes after nearly 75 crown post offices were closed down or turned into franchises.

A CWU spokesperson said that employees affected by the closures were given the choice of employment with the franchise holders or a voluntary redundancy package.

CWU deputy general secretary Dave Ward said the dispute was one of the most challenging the union had faced.

He said: “This has been one of the most protracted disputes this union has ever been involved in and we have made considerable progress to get where we now are.”

The pay deal for remaining employees covers three years and consists of a 3.9 per cent pay increase from April 1 2014 and payment of a further 3.4 per cent paid in 1 per cent instalments when targeted savings are achieved.

Post Office workers will also receive £2,300 paid in three instalments, with the remaining £1,000 paid in 2014/15 through two instalments of £500.

Post Office general manager Roger Gale said: “We have reached an agreement which means we can continue to transform our crown network and keep our branches on high streets and in city centres across the UK, while ensuring we hit our target of break-even by March 2015.”