The 650 workers had taken four weeks of strike action in the dispute after rejecting an initial 4.1 per cent increase.
However, following prolonged negotiations, a revised offer worth an average of nine per cent for drivers was accepted after 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 has increased from £9.79 an hour to £10.84.
Anyone with a year’s service will receive at least £11.96 and all drivers with at least three years’ service will receive £13.20 an hour.
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.”