Embattled discount retailer Big W is on track to foot the bill for a large wage spike as it reached a new enterprise agreement for the first time in seven years.

According to The AFR, the new deal, which replaces the long-expired 2012 agreement, provides its employees with a 1.5 per cent wage increase plus a discretionary 2% increase from December 2019.

92% of the 17,000 workers who took part in the ballot voted in favour of the wage increase, to restore penalty rates and casual loadings and to raise redundancy pay.