The Cabinet has agreed to fund a $114 million pay equity settlement for Oranga Tamariki social workers, Children's Minister Tracey Martin said.
The settlement has been agreed to in principal between the Public Service Association (PSA) and Oranga Tamariki.
It is worth $114.6m over five years and applies to more than 1300 social workers.
"I want to acknowledge the efforts of both the Oranga Tamariki and the PSA, who have worked together in good faith to examine the claim and reach agreement," Martin said.
The settlement will see an average lift in their salaries of 30.6 per cent over a two-year period.