The Public Service Association (PSA) of NSW announced on Tuesday it had taken the government's offer of an 11.4 per cent pay increase over three years.
But key frontline workers not represented by the union remain locked in intense negotiations as they seek much bigger wage rises.
Nearly four-in-five PSA members voted to take the latest offer that includes a four per cent wage increase in 2024/25 before three per cent bumps in the subsequent two financial years.
It includes inflation provisions, with negotiations for a one-off payment triggered by a 3.5 per cent lift in Sydney's CPI, and a $1000 payment triggered by a four per cent increase.
Reducing injury rates, lowering redundancy costs and getting rid of outdated allowances found the saving to afford the raise, the government said.
The drawn-out negotiations ended with a deal that recognised the value of what public sector workers deliver to NSW, PSA general secretary Stewart Little said.
"Our members look after at-risk children, they protect our police officers and our natural environment, they provide security at our courts, and hundreds of other crucial services ... they deserve every cent of this pay rise," he said.
Specific industries including child protection, fisheries, sheriffs and non-sworn police signed separate deals including other reforms on top of the headline wage bump.
Treasurer Daniel Mookhey said negotiations were "tough but fair".
"This agreement is proof that a mature government can bargain to reach a deal that's good for taxpayers and good for workers," he said.
"Our mutual gains bargaining system has worked ... in a cost-of-living crisis, we are delivering meaningful pay rises to people."
Workers represented by a number of other public-sector unions remain in escalating negotiations with the government.
NSW's nurses and midwives ask for an immediate 15 per cent bump and have begun striking in the first major industrial action under Premier Chris Minns' leadership.
The police union wants a 25 per cent pay bump over four years along with changes to superannuation, while fire brigade employees ask for 20 per cent over three years.
Both the nurses and firefighters have reached interim pay deals while negotiations continue.
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