A pay deal has been reached between unions and the Oceania rest home group, bringing a nine-month industrial dispute to a close.
Under the terms of the deal the 1500 union members employed by the group will get a pay rise of 3.22 percent.
"The key issue in this dispute was getting Government money passed on to the workforce and we are pleased that Oceania has now understood the need to pass on the funding it receives from District Health Boards to the care staff," said Service and Food Workers Union spokesman Alastair Duncan.
New Zealand Nurses Organisation members were also involved in the row which saw workers at some of Oceania's 59 facilities walk off the job in March.
They said most workers were being paid just above the minimum wage.
Both unions said a recent report into the aged care sector by Equal Employment Opportunities Commissioner Judy McGregor showed the industry was underfunded.
Mr Duncan said he hoped Oceania, the country's largest care provider, would work with the Government and DHBs to improve the situation.
NZN