Germany's largest airline agreed a pay increase for its ground personnel and for staff at Lufthansa-Systems, Lufthansa-Service GmbH, Lufthansa Technik and Lufthansa Cargo of 2.2 percent on Jan. 1, 2016 and another 2.2 percent one year later, in addition to a one-off payment of 2,250 euros (1585 pounds) per full-time employee.

The collective bargaining agreement will expire at the end of 2017.

Lufthansa remains embroiled in disputes over pay and retirement benefits with pilots and cabin crew that has resulted in numerous strikes.

(Reporting by Ludwig Burger; Editing by Mark Trevelyan)