Management and unions confirmed the agreement late Thursday (August 4).
It comes as airlines across Europe face labor strife.
The rapid rebound in tourism has left them facing staff shortages, sparking chaos at airports.
Soaring inflation has also prompted workers to demand higher wages.
Lufthansa's new deal includes pay hikes this year and next.
The biggest increases will go to staff on lower incomes.
Unions say some workers at check-in counters will see their wages jump by almost a fifth.
That should mean real-terms increases for many staff, even in the face of rising inflation.
But the deal doesn't end Lufthansa's labor troubles.
It's due to hold more talks next week with pilots, who have already voted for strike action.
This week, Lufthansa said it expected short-haul demand in Europe to help drive a return to profit for the group.
Shares in the airline rose over 3% in Friday (August 5) trade following news of the deal.