Jobs threat as Carpetright announced plans to close stores amid troubled financial positionLeaders of unions representing more than a million workers including nurses, midwives, ambulance drivers, porters and other staff will meet employers on Wednesday to finalise the increase.
Workers will have to be consulted but it is expected they will receive higher pay from July, backdated to April.
The deal covers NHS workers in England at a cost of around £4 billion, which is new money from the Government rather than coming from existing budgets.
Money is expected to be made available for similar pay rises in Wales, Scotland and Northern Ireland.
Is Leeds set for snow this Easter? Forecasts suggest 'Beast from the East' could returnThe deal will be structured to give higher rises to the lowest paid.
Pay bands will be changed so that workers can move more quickly through their pay grade.
NHS workers have been subject to the Government's controversial public sector pay cap for seven years, limited to an annual increase of no more than 1%.
The cap has affected other workers including local government staff.