Employees will receive an pay increase of 3.9% from April 2014. They will also receive a lump sum of £2,300 in 2014, to cover an increase dating from the start of the talks.
The deal includes an agreement for a further 3.4% increase, in 1% instalments, when targeted savings have been achieved. There will also be two additional lump sum payments of £500 across 2014/15.
CWU members voted overwhelmingly (88%) to strike in February 2013, and its 200,000 postal worker members walked out in March. A further two strikes, in August and September of 2013, were followed by talks with the Post Office in November.
CWU national officer Andy Furey called the deal an "excellent settlement" for Post Office staff.
"Post Office workers have been very patient in waiting for this well-deserved pay deal since the first industrial action was taken in March last year," he said. “We have worked with the Post Office to come up with ideas that have helped to achieve a result significantly different from where we started at the beginning of the dispute."
The offer will now be taken to a CWU vote for approval. Furey said he was confident it would be accepted, and the union had "no hesitation" in taking it to its members.