The union, which began strike action on June 6 over low pay claims amid the cost of living crisis, previously said newly-recruited bus drivers were paid £9.78 an hour - just 28p above the minimum wage.
650 workers took four weeks of strike action in the dispute after rejecting an initial 4.1 per cent increase.
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However following prolonged negotiations a revised offer worth an average of nine per cent for drivers, was accepted following a ballot of members.
Unite general secretary Sharon Graham said: “This was a superb result for our members. Through their unity and determination they have ensured that Arriva more than doubled its original offer.
“Unite is the union which always puts the job, pay and conditions of its members first and that approach is paying dividends as this Arriva deal demonstrates.”
As part of the deal the rate for new starters have increased from £9.79 an hour to £10.84.
Anyone with a year’s service will receive at least £11.96, all drivers with at least three years’ service will receive £13.20 an hour.
"Arriva and Unite the Union are pleased to have reached an agreement today over a recommended offer being taken to union members in a ballot later this week." the bus operator previously tweeted.
Unite regional officer Phil Bown said: “This has been a highly challenging dispute and its success is due to the commitment of our members at Arriva Yorkshire and to the hard work and dedication of the union’s reps.”