The College of Midwives says this year's Budget does little to rectify the pay inequity gap within the sector.
Thursday's announcement included an $8 million dollar injection as well as an agreement from the Ministry of Health to work with the sector on redesigning its overall funding model.
College of Midwives chief executive Karen Guilliland says the overhaul of the funding model is great news, and will improve conditions for midwives nationwide.
"The real news for us is the Government has agreed to co-design a completely new funding system that works under the pay equity principles the aged care workers gained. Using those pay principals is going to make an enormous difference."
But the new funding announced is peanuts compared to what they need.
"The $8 million is really just a very small recognition of the pay equity problems that midwives have had over the last seven to 10 years, where we've actually had very little in the way of income rises," she told Newshub.
Ms Guilliland says the boost equates to a mere 6 percent fee increase for midwives.
"This 6 percent pay increase is just a tiny recognition of the actual 30 percent difference in pay that we should have got. The real work will be when we redesign and restructure the whole payment system."
The boost will come in July.