The average payment will be 15,000 euro.
The agreement was reached following the intervention of Labour Relations Commission boss Kieran Mulvey.
Staff were initially told they would only be entitled to statutory redundancy and lobbied hard for an increased compensation package after the defunct bank was liquidated by the Oireachtas.
Bank staff will have to ballot on the payout. The deal has been welcomed by the union representing bank staff the IBOA
