Royal Mail Plc, Britain's former postal monopoly, said it reached a one-year pay deal with the Communication Workers Union that would increase workers' base salary by 1.6 percent.

The CWU will recommend that its members accept the offer for the year 2016-17 in a ballot, Royal Mail said in a statement on Wednesday.

Royal Mail said the offer was for all employees represented by CWU, including those of its Parcelforce Worldwide service, and would be in force from early April.