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Posted: 2014-12-20 05:39:55

Daniel Andrews has managed to resolve the paramedic pay dispute after two weeks in office. (9NEWS)

Paramedic morale has lifted across Victoria with a long-running pay dispute resolved.

The state's paramedics will get a $3000 sign on bonus and a six per cent pay rise from January 1 after an agreement was signed with Ambulance Victoria and the Ambulance Employees Association.

Just two weeks after being sworn into the state's top job, Premier Daniel Andrews announced a package that the opposition says is similar to the coalition's before the election.

Under Labor's deal paramedics will receive six, three and three per cent pay increases over two years while agreements were also reached on allowances and job classifications.

Mr Andrews said the government also included a commitment to work with paramedics to improve ambulance waiting times.

"We have to properly reward them and then we have to work with them to improve the service," he told reporters on Saturday.

Health Minister Jill Hennessy said the deal would cost taxpayers an additional $11 million a year, starting in 2017-18.

Shadow Health Minister Mary Wooldridge accused the government of secret deals and said a Fair Work Commission work value review meant the deal could still cost taxpayers even more.

"What was not articulated is these details in terms of the allowances, the benefits and an open ended case to Fair Work, in terms of the value of the work that they do," she said.

"We must monitor very closely further benefits that may come," she said.

The review, which was also offered by the coalition before the state election, is expected to begin in April, according to the ambulance union.

Ambulance Employee Association secretary Steve McGhie said paramedics were relieved the dispute was over and were happy with the deal.

"There has been a lift in morale that has been down for many years," he said.

Mr McGhie said the deal meant Victorian paramedics would no longer be the Australia's lowest paid, but hoped the work value review would recommend further pay rises to put them on par with the best paid.

WHAT IT MEANS FOR PARAMEDICS

* $3000 sign on bonus

* 6 per cent pay increase from January 1

* 3 per cent pay increases on July 1, 2015 and July 1, 2016

* Commitments to identify system failures, inefficiencies and solutions

* An end to all industrial action

* Regular performance reviews

© AAP 2014

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