Theatre directors will receive pay rises in each of the next four years as part of a deal struck by performers' union Equity.
The union said that following negotiations with SOLT/UK Theatre, it has achieved an immediate 10% increase to minimum rates for directors in the West End and 6% in the commercial and subsidised sector.
In the West End, minimum rates will rise by 5% in Year 2 of the four-year agreement, and the CPI measure of inflation plus 2% in Years 3 and 4.
For commercial and subsidised theatre, minimum rates will rise by 5% in Year 2 and CPI plus 1% in Years 3 and 4.
Paul W Fleming, Equity General Secretary, said: "Through the incredible efforts of our members and staff we have made substantial progress in ensuring that the minimum rates can begin to match the going rates, and eliminate producers who undercut their peers to the detriment of our members.
"There is work still to do, but Equity’s unique place at the table, along with growing theatre director membership and activism means we are in a better position than ever to advance our agenda of a fair deal for directors."