De Beers and the National Union of Mineworkers (NUM), which represents employees at its South African diamond mines, reached a five-year salary agreement.
The diamond company said employees would be granted a 7% salary raise in 2023, followed by a 6% annual increment until April 30, 2028.
The minimum entry-level basic wage now stands at R17,630 ($954.30) per month, exclusive of allowances.
"The agreement provides a measure of certainty to our employees for the next five years as we focus on ramping up the underground mine at Venetia," said De Beers managing director of managed operations, Moses Madondo.
De Beers and NUM, which represents more than 1,500 employees at the South African operations of the diamond group, have been engaged in wage negotiations since March this year.
NUM threatened to go on strike at Venetia in September, claiming that pay negotiations had stalled.
Industrial action would have had a significant impact on Venetia, where De Beers began operations from its newly constructed underground mine worth $2.3 billion last July following the end of 30-year open pit mining operations in December 2022.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
