Rest home workers have reached a pay agreement with employer the Oceania Group.
The agreement marks the end of a nine-month pay dispute between the workers' union and the aged care provider.
The Oceania Group says the new collective agreement passes on government funding to workers, giving them a 3.2% pay increase over the next two years.
Chief executive Guy Eady says the company is looking forward to putting months of industrial action behind it.
He says the aged care sector will face more financial challenges over the next 20 years as baby boomers reach retirement age.
The Service and Food Workers' Union says it is glad Oceania has finally agreed to pass on government funding.