The Scottish Government will implement a "minimum wage floor" for public sector staff of £10.50 per hour, Kate Forbes has said.
She told MSPs in the Scottish Parliament that workers on low pay would get help in the next financial year.
The Finance Secretary said the government would guarantee inflationary rises of at least £775 for those on less than £25k-a-year, £700 for people on £25k to £40k and £500 for Scots taking in more than £40k per year.
People in the social care sector will see their hourly rate increase from £10.02 an hour to £10.50 per hour.
Forbes said: "The principle of fair work is a cornerstone of this Government’s economic approach, and I have placed that principle at the centre of my decisions about public sector pay.
"I recognise the challenges presented by inflation and rising living costs, and also the huge effort the public sector has made in responding to the pandemic.
"Our pay policy for next year therefore focuses on those on low incomes, continuing our progressive approach and guaranteeing an inflationary uplift of at least £775 to those earning up to £25,000, £700 to those earning between £25,000 and £40,000, and £500 to those earning above £40,000.
"In October, the Government announced an uplift in pay for social care workers to £10.02 per hour.
"Today Presiding Officer, I can announce a minimum wage floor of £10.50 per hour across all bodies covered by the pay policy, with specific funding to apply this for adult social care staff."
Funding for the health and social care sector in will reach £18 billion next year, Forbes said.
She also followed through with the SNP manifesto promise to pass on health and social care consequentials in full, totalling more than £1 billion, while £1.2 billion will be made available for mental health services and £200 million will provide the £10.50 minimum wage in adult social care.
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