The Health Services Union welcomed a wage increase and $3000 bonus for workers by the NSW Government

"For the last three years health and hospital workers have been hit by the ugly combination of the pandemic and short staffing," NSW HSU secretary Gerard Hayes said.

"Cleaners, paramedics, wardspeople, security and therapists have worked themselves to the bone to keep NSW safe.

"This payment recognises the reality of what our members have gone through."

The government is offering the one-off payment to all permanent NSW Health Service employees for their work during the pandemic.

Health workers are also set to benefit from a 3 per cent per annum wage cap increase announced for all public sector workers between 2022 and 2024.

A further 0.5 per cent increase is possible in the second year for employees that make a "substantial contribution to productivity enhancing reforms".

"For people on modest incomes, like cleaners and security, it is a massive boost that makes up for the pay freeze of 2020," Mr Hayes said.

"It will allow many to put in place a financial buffer against the rising cost of living.

"Every health worker who has bravely advocated for change in the media, to their local member and in the community deserves to be congratulated."

However, the HSU will continue to push for the public sector wage cap to be abolished.

"The NSW wages policy prevents meaningful wage bargaining. We need a system that allows workers to bargain for wages based on the cost of living and productivity, not a system based on the whim of politicians."

As part of a $4.5 billion announcement on Monday, the NSW Government said more than 10,000 full-time equivalent staff will be recruited to health services in the state over four years.

Almost 7700 of these recruitments are to be in the first year and will include nurses and midwives, doctors, paramedics, pathologists, pharmacists and allied health professionals.

It came after the government promised more than 2000 new paramedic positions on Sunday.

"Coming on top of the expansion in the number of health workers announced yesterday and today, we are pleased the NSW Premier is listening to our concerns and taking action," Mr Hayes said.

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