The bank’s move comes as surging inflation is adversely impacting the workforce, particularly in the low paid category.
The new agency, citing a notice by Unite union, said employees will either get a pay hike of £2,000 or a 5% increase in salary, whichever is greater, to touch a maximum of £5,000.
As per the notice, Lloyds will also announce a minimum full-time salary of £21,200 starting April 2023.
Reuters quoted a Lloyds spokesperson as saying that once the bank includes a pay allowance for company benefits into base pay, the minimum salary will likely be £22,000.
In this regard, a ballot by union members is reportedly scheduled to take place this month.
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Once approved, the terms of the pay raise will be applicable to all Lloyds employees.
The offer is said to be equal to a salary hike by over 8% to 13% for 43,000 low paid staffers planned next year.
The bank also plans to consolidate bonuses into base salaries for some employees.
Earlier this year, Lloyds offered its staff an unplanned pay hike to help them deal with soaring cost of living.
However, the bank’s latest offer reportedly fails to meet the expectations of its employees on higher pay grades.
While the offer means over 10% pay rise for low paid staff, it represents a 4% jump for higher paid employees, noted Unite.