An agreement to settle the backdated equal pay claim has been reached between Birmingham City Council and trade unions.
The council had been facing around 11,000 cases for equal pay claims, affecting mostly female workers.
The agreement will avoid the need for employment tribunal hearings. Affected staff will receive a letter from their solicitors shortly.
Sir Albert Bore, leader of Birmingham Council, had previously said the equal pay requirement had left the authority in a ‘horrendous position financially’.