The federal government has bowed to pressure and boosted its support for equal pay.
A letter by Workplace Minister Chris Evans has changed a government submission to the equal pay test case being heard by Fair Work Australia, Fairfax reported on Wednesday.
The news came as thousands of workers prepared to take to the streets over the issue.
The letter from Mr Evans to the Australian Services Union (ASU) can be tabled as evidence, Fairfax said.
"The submission does not assert that Fair Work Australia should not award or discount equal remuneration because of the potential impact on the commonwealth," the letter said.
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The ASU will organise rallies in Sydney, Canberra, Adelaide, Hobart and Lismore on Wednesday in support of its test case for equal pay under Labor's new workplace laws.
The union is seeking a pay increase of up to 50 per cent for the female-dominated social and community sectors.
It had initially threatened to strike on December 15, after the public release of the government's submission arguing that a pay increase would affect on the budget bottom line.
But ASU assistant national secretary Linda White said Prime Minister Julia Gillard had since clarified her support for equal pay, and a strike was no longer necessary.
"We are certainly talking at length to the federal government about tweaking their submission, and I'm confident that that will come about," she told AAP on Tuesday.
The union admits a pay rise will be costly for the government - a major employer of community workers - but a phase-in five-year period would help soften the blow.
The union hopes the Fair Work Act will reflect equal pay cases won under NSW and Queensland workplace laws.
A final determination by Fair Work Australia is expected after April next year.
