The Irish Bank Officials Association (IBOA) has welcomed the new pay structure being recommended for staff at AIB by an independent tribunal that would usher in pay rises across the board.

Kevin Foley, chairman of the independent tribunal, has recommended a 2.5 per cent pensionable increase in all staff salaries, increases of up to 15 per cent in salary scales for junior staff plus bonus payments ranging from 3.7 per cent to 7.3 per cent.

The recommendations would mean that the entry level pay for bank officials at AIB which starts at €21,637 would rise up to €41,700.

Salary levels for an officer grade will rise by 7.5 per cent from entry levels of €34,645 rising to €51,365.

The salary range for assistant managers, which starts at €40,089 will rise to €59,011, a 7.5 per cent increase if the recommendations are adopted.

Discussions between the IBOA and AIB on staff pay rates have been continuing for two years and reflect the greater shift towards performance related remuneration that is being increasingly applied at the Republic's biggest bank.

Staff who join the Career Framework structure will also become eligible for an annual cash bonus based on business performance against pre-tax profit targets.

These targets are set annually by the AIB board of directors.

Mr Foley has recommended that the overall bonus pool spent by the bank will be between 4 per cent and 8 per cent with a pool of 6 per cent being made available by the bank for on-target business performance.

IBOA general secretary, Larry Broderick, said that AIB staff will benefit from significant pay increases and bonuses on top of whatever is negotiated at a national level in return for co-operation with changes within the organisation.

"The implementation of Mr Foley's recommendation will bring about serious change within AIB, but it brings change through agreement and mostly brings considerable benefits to staff" he said.