The Prime Minister says cabinet will factor in the concerns of the private sector when it considers a historic pay equity settlement.

Around 55,000 aged care, home support and disability care workers, mostly women, are set to receive a lift in pay to $27 an hour.

Cabinet has yet to sign off on the settlement, which will cost the Government an extra $500 million a year.

Bill English told Mike Hosking they're considering how businesses will be affected by the settlement.

"There's always concern about government pay negotiations and the flow into the private sector and we're taking that into account."

More details about the historical equity pay rise and its wider impact would be revealed by the government later today, he said.

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