Victorian Premiers says paramedic pay dispute is finally over

A dispute over pay and conditions for Victorian paramedics has come to an end more than two years after it began.

Ambulance Victoria and the Ambulance Employees Association have signed a deal with the Labor government.

Paramedics will get a $3000 sign on bonus as well as pay increases of six, three and three percent over the next two years, starting on January 1.

Premier Daniel Andrews declared the war over today, just two weeks after he was sworn in to the state's top job.

He said the deal package included a commitment to also improve ambulance response times.

"We will be working with our paramedic workforce, not just on these industrial issues but on service delivery issues because paramedics are not in this for themselves, they're in this to save lives," he said.

"We have to properly reward them and then we have to work with them to improve the service."

Mr Andrews said paramedics hadn't received everything they wanted out of the negotiations.

"A negotiation, a bargain, means that there's compromise on all sides," he said.

"That's what good faith bargaining is about."

Health Minister Jill Hennessey said the deal would cost taxpayers about $11 million a year starting from 2017-18.

The Fair Work Commission is completing a work value case for paramedics at Mr Andrews request.

Ms Hennessey said any recommendations over and above the deal would have to be matched.

Parties will meet in January to finalise a draft agreement which will be put to employees for a vote.

WHAT IT MEANS FOR PARAMEDICS:

* $3000 sign on bonus

* Six percent pay increase from January 1

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

* Commitments to identify system failures and inefficiencies

* An end to all industrial action

* Regular performance reviews