The agreement on the pay proposal was reached following a vote by GMB members this week and will see around 3,200 employees receive the pay rise from January 1.
The increase is linked to November’s Retail Price Index. Increases in 2015 and 2016 will also be linked to those years’ respective November RPI figures.
The deal affects workers at JCB’s factories in Rocester, Uttoxeter, Cheadle, Rugeley, Wrexham and Foston, Derbyshire.
Chief executive officer designate Graeme Macdonald, said: “We are pleased to have reached agreement again on a long-term pay deal for JCB’s UK shopfloor employees.
“It’s very welcome news and gives us the stability and forward visibility we need to plan ahead as we gear up to face the challenges and opportunities we will face in 2014 and beyond. The agreement also demonstrates a very responsible approach by all concerned.”
The new deal comes after JCB unveiled plans to invest £150m in the next five years to create 2,500 jobs expanding its UK manufacturing operations.
GMB Works Convenor Gordon Richardson said: “A three year pay deal does give us some guarantees for the future.
“This year’s team of GMB negotiators for the group has achieved an excellent outcome under some very tough bargaining conditions.
“The deal compares very favourably to those being struck at other companies both regionally and in the UK.”