Ryanair has agreed a four-year pay deal with its full-time pilots in Dublin that it says will improve the pay of its captains by more than €25,000 a year.

Under the terms of the agreement, Ryanair says its captains will receive more than €10,000 a year in increases to their basic pay and allowances.

They will also earn more than €12,000 annually in sector pay rises.

In addition, a €5,000-a-year contribution will be made to their pensions and changes to rosters will give the pilots four days off after every five that they work. The low-fares airline says its senior captains in Dublin could now earn more than €160,000 a year.

Ryanair says it has also agreed to improve the speed at which its co-pilots will be promoted.

The new rosters will take effect in mid-October, while the pay increases will be awarded on November 1st. About 60 pilots will benefit from the new pay arrangements.

The figures published by Ryanair have been disputed by the Impact trade union.

Michael Landers, its assistant general secretary, said "literally only a handful" of pilots would earn €160,000 a year.

Mr Landers also said the pay proposals were not prompted by representations from pilots, as was suggested by Ryanair.

This suggestion was rejected by Eddie Wilson, Ryanair's director of personnel. "These proposals were put by the pilots to us and we accepted them," he said.

Mr Wilson said pilots in Dublin would now be on a par with their colleagues in Cork and Shannon.

Ryanair has been in dispute with its Dublin pilots for about four years in relation to pay and recognition, with some pilots taking discrimination cases against the airline.

Mr Landers said the new pay deal would have no impact on complaints being taken by certain Ryanair pilots against the airline.

In February, the Supreme Court ruled that procedures used by the Labour Court in an earlier hearing of the dispute between the two sides were flawed and ordered a new hearing. "This [ pay deal] will have very little effect on it at all," Mr Landers said.

Ryanair said it would be seeking an early hearing of the Labour Court to have the complaints dismissed. "We don't see any future for that case at all," Mr Wilson said.