A union leader confirmed to the Otago Daily Times this week that negotiators were working hard to reach agreement on a deal by the end of the month in time for the Budget.
If it fails, the unions will head back to the courts.
The legal case has been put on hold.
The case centres on the argument that caregivers are short-changed because the sector is female-dominated.
The legal case was taken on behalf of an aged residential caregiver, Kristine Bartlett, but if a settlement is reached it would also cover support workers for the disabled, and home support caregivers who visit the elderly at home.
E tu union assistant national secretary John Ryall said the group of unions negotiating the case with the Government would not agree on a deal unless it delivered a significantly improved result for workers.
"We want to make sure that what we settle on is something that is going to remain current, and we're going to look back in 10 years' time and say ‘we achieved equal pay','' Mr Ryall said.
The deal would be subject to ratification by workers, which, because of time constraints, would happen after the Budget.
Mr Ryall declined to how much the union was seeking.
In court, the union argued for a pay rate of $26 per hour.
Two Dunedin aged residential caregivers spoken to yesterday are hoping negotiators can strike a deal.
It would make a big difference to their standard of living.
Deirdre Sanderson, who earns less than $16 an hour, wants to be able to take her children to the movies sometimes, and to afford an occasional steak meal.
At present, she did not earn a living wage, even though she works for one of the "good guys'' in the aged residential care sector.
Caregiver Ange Wilson said she hoped the case would be a "stepping stone'' for other workers in female-dominated sectors to be paid a fairer wage.
A spokeswoman for Health Minister Dr Jonathan Coleman declined to comment.
The Budget will be delivered on May 26 by Finance Minister Bill English, whose spokeswoman also declined to comment.
