The agreement was reached at the final round of talks Labour Minister Shibu Baby John had with representatives of private hospital management association and nurses associations, official sources said.
The negotiations were held on the basis of recommendations of a committee set up by the government to study the demands of the nurses.
As per the agreement, nurses in hospitals having upto 25 beds would get an increase of 25 per cent from their current pay. The hike would be 35 per cent in hospitals having upto 100 beds.