* Staff at western German plants to get 4.2 percent pay rise

* Deal with union includes one-off payments as well

* Performance-related pay component to start in 2011

* VW shares close 4.6 percent higher, outpace sector

Volkswagen (VOWG.DE) and the IG Metall union have struck a wage deal for 95,000 staff in six western German plants that calls for a 4.2 percent pay rise plus one-off payments.

The pay rise takes effect on Jan. 1 as part of an 18-month accord, which runs until the end of January 2011, Europe's biggest carmaker said on Monday. The deal will also introduce some performance-related pay from 2011 for the first time.

Details of the performance-related component will be worked out by the end of September 2010 but should be worth around 100 euros ($147) per month, VW said.

The pay rise for VW's in-house staff is in line with what workers elsewhere in the German engineering sector are getting.

Volkswagen shares closed 4.6 percent higher at 113.13 euros, while the German blue-chip index .GDAXI was up 2.8 percent. ($1 = 0.6822 euro)

Volkswagen Germany