Welsh doctors and dentists will see a base pay increase of 2.8%, the Welsh Government has announced.
The increase will affect all doctors and dentists, including consultants, doctors in training, specialty and associate specialist doctors, salaried GPs and dentists.
A pay rise was recommended by this year's report from the Doctors' and Dentists' Renumeration Body (DDRB). Every year they review the salaries of NHS doctors and dentists and make recommendations based on ensuring fair pay levels.
While the increase was welcomed by BMA Cymru Wales as going "some way" to recognising the efforts of doctors during coronavirus, they also said the report's "recommendations could have gone further".
Wales' Health Minister, Vaughan Gething, made the announcement on Tuesday 21 and said the "increase is well-deserved recognition for our hardworking doctors and dentists".
He added: "The Welsh Government is committed to supporting our NHS workforce, who have once again proved their dedication and commitment by delivering excellent health care in very difficult circumstances recently."
He also pointed out that the UK Treasury has not provided any extra funding to help towards a recommended pay increase above 1%. Mr Gething said this means funding "will need to be found from existing budgets".
The pay uplift is for all NHS doctors and dentists. For contracted GPs and dentists, it is part of overall contract changes and the Welsh Government said they "will be engaging with the representative bodies."
Mr Gething said in terms of other staff within the health service, including paramedics and porters, there is a process where the Welsh Government has agreed a pay deal over a period of time and it will be discussing it further with the unions.
In response to the announcement, BMA Cymru Wales Council Chair, Dr David Bailey said the increase would go "some way" to recognising the contribution of Welsh doctors but more could have been done.
He said: "The DDRBs recommendations could have gone further to address many years of below inflation rises, however, doctors in Wales will be pleased that the Welsh Government has decided to implement the recommendation made by the independent panel.
"The NHS is facing unprecedented levels of demand and staff shortages, and the last few months have been particularly gruelling for doctors as they have battled the Covid-19 pandemic.
"This announcement shows that the Welsh Government understands the value of doctors who are working tirelessly to improve and maintain the health of the people of Wales and will go some way to assuring them that their efforts are gratefully received."
The BMA is the trade union representing doctors across the UK. The BMA also give evidence to the DDRB when they are formulating their yearly report on pay.