Cabinet has approved $90 million to go towards a minimum wage for disability support workers on overnight, sleepover shifts.
An agreement was struck last week between the Government and unions over a minimum wage and back pay for thousands of workers.
The Health Minister, Tony Ryall, says the $90 million is to be used to help phase in a minimum wage by July 2013, and $27.5 million in back pay.
Mr Ryall says the employers, the union and the Crown have agreed not to continue with litigation currently before the Supreme Court.
The Government will fund half the cost of providing a minimum wage backdated to July this year, 75% from July 2012, then the full amount from July 2013.
Back pay will be paid at 50% of the approximate minimum wage from July 2005 until the end of June this year.
Legislation needed to secure the agreement will be passed before Parliament rises for the election.