Minister for Public Expenditure, Paschal Donohoe said on Tuesday that the Government approved the proposed terms of an agreement reached at the Workplace Relations Commission.
The deal between public service unions and public service officials representing the Government, saw an extension to the current Lansdowne Road Agreement.
The terms of the agreement, which will cost €887m over three years, will run until December 2020.
Under the new agreement, nurses will receive allowances for a midwifery qualification, for being a registered general nurse in the community, called a nurse coordinator allowance.
Prison officers and firefighters are set to receive an increase of €500 in the rent allowance and other salary improvements.
Radiologists working in the Breast Check Unit in the health service will receive a special allowance.
Finally, craft workers in the local authorities, the Office of Public Works, and in the health and education sectors will receive a tool allowance.
Speaking about the new extension, Minister Donohoe said: "The Agreement aims to award pay increases for public service staff across the coming years in line with what is affordable to the State
He also said it aims to "put pension provision on a more sustainable footing and secure industrial peace so that our public service remains a rewarding place for those who work in it and continues to deliver for those who depend on it.
The Minister further pointed out that: "The Agreement provides a series of pay increases which will unwind FEMPI pay reductions for 90% of public servants.
"It also provides for significant further income gains for new entrants recruited after January 2013 who will benefit from much reduced rates under the proposed new Additional Superannuation Contribution (ASC) compared to their pre-2013 peers."