The Cabinet has signed off on the Order in Council allowing health funding to go towards the settlement of wages for people providing care on overnight shifts.
In October last year, the Government passed legislation to provide money towards the payment of an hourly minimum wage for overnight carers.
The Sleepover Wages (Settlement) Act provides $27.7 million for Crown-funded employers to cover back pay and up to $90 million over three years to help phase in the minimum wage.
The Government introduced the legislation after the Court of Appeal found that disability support staff should be paid for each hour spent at care homes.
The Public Service Association says it has been a frustrating wait since the initial claim in the Employment Relations Authority in 2007 and then the passage of the legislation, but is pleased to finally have a resolution.