Rolls-Royce Holdings PLC (LSE:RR.) will give staff a one-off payment to help with the cost-of-living crisis.
More than 14,000 members of staff will be given a £2,000 payment, with the first lump sums to be rolled out to 3,000 employees in August, according to the BBC.
The remaining 11,000 unionised workers will receive the payment when their union approves the amount.
The payment will mainly cover junior management and shop floor staff at its Derby and Bristol sites.
A spokesperson for the FTSE 100 firm told the BBC that 70% of its UK workforce will receive the one-off payment, and that shop staff will receive the highest annual pay rise for at least a decade.
The spokesperson also said the unionised members will be offered a 4% increase in pay, backdated to March, and that discussions with unions over a pay settlement for the next year are ongoing.