Action for Children has abandoned plans to impose a pay freeze on its 7,000 staff this year.
Richard Cove, executive director of human resources at the children's charity, wrote to employees last week saying that the organisation now planned to "honour the incremental scale point movement in full for 2009/10".
Cove had previously told staff that the charity planned to postpone the automatic annual pay increase, the rate of which is based on a figure agreed by local authorities.
His email to staff also said the charity would honour the award agreed after arbitration at Acas of an additional 0.3 per cent in last year's pay settlement, bringing the total increase for 2008/09 to 2.75 per cent.
"This will be applied in Wales, Northern Ireland and England and will be backdated to 1 April 2008," Cove wrote.
However, the deal has not yet been finalised. Cove told Third Sector that talks had taken place with union representatives last week. "Negotiations are ongoing and we hope to reach a mutual agreement soon," he said.