The decision will see the average wage jump by $15,000, potentially adding stability to the traditionally low-paid transient sector.
At Australian Services Union headquarters, there were celebrations at the decision which would see pay-rises of between $6000 and $24,000 to employees in the female dominated social, community and disability services industry.
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"Never has any union or anyone undertaken such a large case in the history of Australia", the ASU's Linda White said.
Union representatives said the decision was globally historic.
"What it does show is that the Fair Work Act is just that it is fair. It has delivered a great outcome for underpaid and undervalued women in our society", ACTU President Ged Kearney said.
But the increases will be phased in over eight years, not six as initially requested by unions and sector groups.
"We still want to talk to the government about how we can fast-track to ensure that the funding so that people get the pay rate today that they deserve", said Dr Cassandra Goldie of the Australian Council of Social Services said.
"They shouldn't have to wait."
Today's decision will boost the income of some workers by more than $20,000, and the Chamber Of Commerce has labelled the outcome "disturbing."
The Australian Industry Group says there's a risk a raft of other Unions will now follow suit.
According to the Prime Minister, there are economic benefits.
"Properly valuing caring work and providing decent wages in these services sectors will also help make our economy and our society more resilient."
The first of the increases will be phased in from December.
