Taoiseach Bertie Ahern tonight welcomed the decision of ICTU and IBEC to ratify the new social partnership deal Towards 2016.
"In doing so, they are continuing the social partnership process which has been central to our strong economic and social performance over recent years," Mr Ahern said.
"While social partnership is about more than the terms of the pay agreement, I believe the pay terms are reasonable and realistic.
"The pay increases are significantly better than in many of our competitor countries and this is possible only because of the stability and confidence which these National Agreements bring, together with the commitment to flexibility and co-operation with ongoing change on which they are based," he said.
Early unions and employers accepted the terms of the partnership deal contained in Towards 2016.
The majority of delegates at a Irish Congress of Trade Unions (Ictu) special conference ratified the new social partnership deal. Delegates from all the member unions voted in favour of it by 242 to 84 at the gathering in Jury's Hotel in Dublin's Ballsbridge.
The new deal provides for a 10 per cent pay rise for workers over 27 months and includes a minimum wage increase to be applied from next January. It will also make way for new penalties of up to €250,000 and/or prison sentences for breaches of employment law.
Workers will get their first pay increase under the deal before Christmas.
Some of the State's largest unions - including Siptu, Impact, the TEEU and INTO, the largest teachers' union - had already decided to vote in favour.
The Irish Nurses Organisation (INO) and Mandate, which represents 25,000 workers in the retail and bar trades, did not attend the conference.
Minister for Enterprise, Trade and Employment Micheál Martin said the agreement marked a new era of employment rights in Ireland.
"The establishment of a new statutory Office of the Director for Employment Rights Compliance (ODERC), which will be under the aegis of my department will ensure an independent and workable inspection regime which will ensure employment rights compliance," he added.
Labour's enterprise, trade and employment spokesman, Ruairí Quinn. today welcomed the ratification of Towards 2016by the Irish Congress of Trades Unions.
"Social Partnership has been a key element of the economic success of Ireland over the last 20 years. While I have some reservations about particular elements of the new partnership deal, I believe that overall it represents a reasonable compromise.
"Unfortunately, the issue of pay increases will not be resolved by Towards 2016alone. A 10 per cent pay rise over two years is simply not enough to keep up with rising house costs and household expenses. Recently, it was predicted that household costs will increase by 10 per cent by the end of this year alone."
People are already seeing the effects of huge hikes in electricity and gas prices in their September bills," he said.
ICTU general secretary David Begg said he was relieved that a significant majority of unions had voted in favour of the deal.
"The negotiations went on for a very long time and then concluded eventually in the middle of June, and since June the individual trade union members have been voting on this, and today was the day when this all culminated in the results being declared publicly here, and it was a significant majority in favour."
He also insisted the pay rises promised by the deal would increase the living standards of workers. I think that the level of inflation will remain comfortably below the level of the increase."
The business and employers' group Ibec today said that its members have also accepted the terms of the new social partnership agreement.
Ibec director general Turlough O'Sullivan said: "The pay terms are at the higher end of what is appropriate for the Irish economy. However, business and employers have agreed to the programme on the grounds that it will deliver stable economic development, industrial peace, real reform in the public sector, increased productivity and practical measures to assist the manufacturing industry.
"Business is determined to honour its commitments and expects the other parties to the agreement to do the same. Ireland will remain competitive and prosper only if the public sector and the unions are prepared to embrace change," he said.