BERLIN, Sept. 16 (Xinhua) -- The wage dispute between Germany's state rail operator Deutsche Bahn (DB) and German Train Drivers' Union (GDL) was settled after an agreement was reached, both sides announced here Thursday.

After prolonged strike actions that have led to major disruptions in Germany's rail system, all DB employees are to receive a 3.3-percent pay increase in two steps and two COVID-19 extra payments of up to 600 euros (706 U.S. dollars).

"The bridging of the interests of our passengers, our employees and the company has been successfully built," said DB Chief Human Resources Officer Martin Seiler, adding that the agreement would take into account COVID-19 issues while also recognizing the commitment of employees.

The previously contentious issue of company pensions was also resolved.

"The company pension is secure," said head of GDL Claus Weselsky. Anyone who started working for Deutsche Bahn until 2022 would still be part of the pension fund and "enjoy a reasonable company pension." (1 euro = 1.18 U.S. dollars)