Unions have struck a deal with Caerphilly County Borough Council which will see workers’ holiday pay boosted.
Carers, highways maintenance staff and others employed by the local authority will see their annual leave pay increase.
Workers will now receive payments based on their regular pay, which includes supplements such as shift allowances, rather than just their basic pay.
The change has come about due to recent court rulings.
Caerphilly council has reached agreement with unions the GMB, Unison and Unite, which means that contractual annual leave payments will now be based on total pay and not just basic pay.
Additional money earned through sleep-in supplements, night work, standby, additional hours and overtime will now continue to be paid during annual leave thanks to the deal with council unions.
Unison branch secretary Gary Enright, speaking on behalf of all three trade unions, said: “This is wonderful news for hundreds of low paid council workers and their families.
“Local authority staff work incredibly hard keeping vital local services running and supporting vulnerable people. This is money that they have earned and is theirs by right. Well done to Caerphilly Council for this progressive agreement.”