The offer would mean a 17 per cent pay increase for the lowest-paid allied health workers, with the ability to regularly progress up pay steps, and 5 per cent for the highest-paid.
This offer is almost five times more than what the DHBs initially brought to the table.
It also delivers on a number of other priorities, including safer workplaces and manageable workloads.
"This will contribute to the attractiveness of the allied health professions and the overall satisfaction and wellbeing of our members," PSA organiser Will Matthews said.
The offer was a testament to the perseverance of severely overstretched health workers.
"The collective power of union action certainly sharpens the minds of employers," Matthews said.
Next to pay increases, the offer includes two lump-sum payments and the two bottom steps from the lowest-paid scales for non-degree technical, allied assistant and clinical support workers as well as Hauora Māori workers will be removed.
Merit would be abolished for all steps under $60,000.
One major hang-up of the negotiations was a pay equity claim by the union.
A report by the Employment Relations Authority which was kept embargoed until this recent offer recommended a set of pay equity provisions including an interim pay adjustment and a lump sum payment.
While the DHBs didn't agree to the provisions, they offered a memorandum of understanding committing to addressing the provisions through the Pay Equity bargaining process to be settled no later than April 29, 2023.