After two years of bargaining and a strike that has lasted almost two weeks, 120,000 Treasury Board workers have a tentative deal.
The strike continues for Canada Revenue Agency workers, another 35,000 federal public servants.
The agreement applies to those workers in the Education and Library, Program and Administrative, Operational Services, and Technical Services in the Core Public Administration. Those include those working in data processing, communications, welfare programs, and technical inspections.
The Public Service Alliance of Canada says the agreement includes a wage increase of 12.6 per cent over three years and a one-time lump sum payment of $2,500.
"During a period of record-high inflation and soaring corporate profits, workers were told to accept less, but our members came together and fought for better," said PSAC National President Chris Aylward. "This agreement delivers important gains for our members that will set the bar for all workers in Canada."
The union says it also secured an additional fourth year in the agreement.
"PSAC members will now have access to additional protection when subject to arbitrary decisions about remote work. We have negotiated language in a letter of agreement that requires managers to assess remote work requests individually, not by group, and provide written responses that will allow members and PSAC to hold the employer accountable to equitable and fair decision-making on remote work," read a statement from PSAC.
The union recommends ratification, but it hasn't announced a date for a vote.
The agreement also calls for a joint committee to review training courses related to employment equity, diversity, and inclusion.
The union said workers will get a full explanation of the agreement in the coming days.
"These agreements address all key priorities put forward by the PSAC," said the Government of Canada's statement. "They include improved provisions around leave with pay for family-related responsibilities."
The government said Indigenous employees now have access to paid leave to participate in traditional practices.
"This new provision represents another important step in our reconciliation journey and supports our ongoing efforts to create healthy workplaces," the statement continued.
"The best deals are reached at the bargaining table. We respect the right to negotiate and appreciate Canadians' patience and understanding over the past two weeks," added President of the Treasury Board, Mona Fortier. "These deals are fair, competitive, and reasonable, and bring stability to public servants and Canadians."
Full-time employees in the impacted bargaining units earn between $50,000 and $75,000 annually.