Manchester council will pay all care workers the Real Living Wage from April.
Thousands of care workers in the city will be paid £9.90 an hour in a couple of months' time as the council commits to bringing forward plans for a pay rise.
Staff celebrating the news have said the move is a 'massive morale boost'.
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It comes as public sector trade union UNISON continues to campaign for all councils in Greater Manchester to pay care workers the Real Living Wage.
Manchester is the fourth to commit, joining Salford, Oldham and Rochdale.
Nuria, a support worker in Manchester, said she considered leaving the sector due to poor pay – but the pay rise means she can stay on in the job she loves.
She said: "Knowing we will get the Living Wage has made me feel more valued and boosted my motivation, which will have a positive impact on the people I support.
"I love being a support worker, but I considered leaving the sector due to the bad pay. This pay rise means I will be able to stay on this sector."
Manchester council already pays at least the Real Living Wage to directly-employed care workers and to council-commissioned homecare workers.
The town hall had previously announced an 'aspiration' to pay all care workers the Real Living Wage with a view to introduce this by April 2023 at the latest.
But these proposals will be brought forward by a year once the budget is set.
It comes as a group of care workers and UNISON members met with council leader Bev Craig and deputy leader Joanna Midgley earlier this week to make the case that all care workers deserve to be paid at least the Living Wage rate.
Paula, a mental health support worker in Manchester, said the meeting where the councillors gave assurances about a pay rise was a 'massive morale boost'.
She said: "I love my job – no one day is ever the same. The challenges and responsibilities are huge.
"This feels like the beginning of being recognised for the invaluable work we do."
Manchester council will set its budget for the next financial year on Friday.
Funding has already been set aside in the budget to pay for increases in the National Living Wage and to start paying the Real Living Wage later in the year.
The executive is expected to accelerate those plans at meeting on March 16.
The move will mean the town hall will increase fees paid to providers to reflect the extra cost involved in paying all of their care workers the Real Living Wage.
Deputy leader Joanna Midgley said: "Care workers play a vital role in the wellbeing of Manchester people, especially our most vulnerable citizens.
"We've seen their commitment and dedication vividly demonstrated during the Covid-19 pandemic and it is only right that we ensure that work is recognised and they are paid fairly.
"We already pay at least the Real Living Wage to care workers who we employ directly and to our commissioned homecare workers.
"Manchester was one of the first councils to implement this in 2018 and had previously committed to extending this to all commissioned services by 2023.
"By bringing this forward by one year this is the final piece in the jigsaw, to ensure that all care workers across residential care and support services commissioned by council get a real living wage.
"I'm proud that the council has been able to take a lead on this."
UNISON has campaigned for every council in Greater Manchester to pay all care workers the Real Living Wage by lobbying leaders across the city-region.
Care workers have told Greater Manchester's local authority leaders and mayor Andy Burnham directly how low pay negatively affects their lives.
They presented a petition to the politicians with more than 4,500 signatures.
Care workers will gather at Manchester Town Hall on March 4 before the council sets its budget to celebrate the success of their campaign so far.
UNISON Manchester branch secretary Carl Greatbatch commended the leadership of Manchester council for supporting the care workers’ campaign.
He said: "UNISON welcomes the informal announcement made by Coun Bev Craig that the council will guarantee commissioned care workers are paid the real Living Wage. We look forward to its formal confirmation next week."
The trade union boss said Trafford, Tameside, Wigan and Bury have indicated that they will pay the Living Wage from 2023 – a year later than Manchester.
He added: "Campaigners say that this is not soon enough."
UNISON North West social care lead Dan Smith called on the remaining six councils in the city region to 'take responsibility' and 'kick poverty wages out'.
He said: "The cost of living crisis is waiting for no-one and delaying a pay rise until 2023 will push even more brilliant care workers out of the industry.
"Greater Manchester care workers are speaking at events, launching petitions, lobbying politicians and organising together across the city.
"Standing together in their union, care workers are powerful and their strength is forcing decision makers to take notice.
"We will continue our campaign until every care worker in Greater Manchester is paid a Living Wage."
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