The Royal Mail has made a three-year pay offer to around 125,000 employees, which includes a lump sum benefit and annual bonuses.
The iconic and historic business, which the Government hopes to see privatised, said the deal would increase base rates by 8.6%.
A lump sum of £300 would also be paid in December, as well as new incentive arrangements including a minimum £100 bonus, payable at the end of each year.
The Royal Mail said it also wanted a "new model" for the company to work together with the Communication Workers Union (CWU).
Moya Greene, chief executive of the Royal Mail Group, said: "Co-operation is central to the future success of the company.
"This offer represents Royal Mail's commitment to a long-term engagement strategy with the CWU and with our people.
"We have already built a stronger Royal Mail together through closer co-operation and trust in recent years. We are now offering a new long-term agreement with the CWU and our employees.
"This is a good deal - good for Royal Mail and good for our people. We are asking the CWU and our people to accept this new agreement.
Ms Greene added: "There will be further discussions this week with the CWU about the proposed agreement."
A statement said terms and conditions in the proposed agreement would not be affected by any change in ownership of the company as the Government presses ahead with plans to privatise the Royal Mail.
The proposed deal does not apply to staff in post offices.
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