WIGHTLINK has agreed an inflation proof pay deal with unions over the next five years.
The agreement between the RMT, Nautilus and the company will see above inflation pay rises, particularly weighted to support lower paid staff.
The ferry company employs 400 permanent staff, rising to 600 in the summer. Around 200 staff live on the Island.
Wightlink chief executive, Russell Kew, said: "Our staff have highly responsible jobs, making sure that our customers and ships are safe, and that we operate a reliable, punctual service to and from the Isle of Wight.
"It is right that we should reflect their work and give them the security of a long term pay agreement. We will continue our constructive dialogue with the unions in the months and years ahead."
RMT Wessex regional organiser, Mick Tosh, added: "I am pleased we have reached this agreement which, I believe appropriately values the considerable contribution our members make to the running of the services Wightlink provides and demonstrates the benefit of continuing dialogue between the RMT and Wightlink."
Lisa Carr from Nautilus said: "This agreement confirms the importance of our members in securing the future of Wightlink’s service to and from the Isle of Wight."