Staff at the University of Papua New Guinea are to receive a one-off 210 US dollar payment which was granted to all public servants at the end of last year.
The National newspaper says half of the money will be paid out to staff this week.
The other half will be paid when the University receives its next tranche of grant funds.
Two weeks ago, staff began what they called a stop-work and what the University called an illegal strike, to support their claim to the payment.
They coupled that with a demand for a four per cent wage increase, despite being granted pay rises only six months ago.
The newspaper says that issue is subject to further negotiations.