Council staff have been offered a 1% pay increase from April 2016 and a further 1% the following year.
The National Employers have made the two-year deal to unions today, which would also see employees on lower salaries be given higher rises to take into account the new National Living Wage.
The deal - which does not cover chief executives or senior staff - would affect more than one million workers.
‘Despite the challenges now facing local authorities following the Spending Review and new National Living Wage, there is a broad consensus among councils that there should be a pay offer to staff this year,’ said Cllr Sian Timoney, chair of the Employers’ Side.
‘This offer balances our commitment to increase the pay of our hardworking employees with the responsibility we have to address the ongoing financial pressures we face.
‘We believe that this is a fair deal for employees, given the limits of what we can afford, and a fair deal for the taxpayers and residents who use and pay for the vital services which local government provides.’
Trade unions Unison, Unite and GMB said they would consult with members on the pay offer and will meet in February to decide their next steps.
