From the beginning of next month about 24,000 community care workers will be paid for the time and cost of travelling between clients.
Parliament passed the Bill today, and the new deal is going to cost the government about $38 million a year.
The workers look after more than 40,000 mostly elderly people who live in their own homes.
Until now, the organisations that employ them, which are funded through the health system, haven't had to pay for travel time or mileage.
Health Minister Jonathan Coleman says the Bill, which was passed unanimously, is an important milestone in recognising the contribution care and support workers make to the lives of many people.
It's the result of a ruling by the Employment Relations Authority in a case brought by union member Jenny Goodman.