Student nurses in their 4th year internship are to get a 12.5% pay increase.
The timescale of a separate €100 euro weekly placement grant will also be extended, with the total cost expected to be €6m annually.
The proposals follow on from a review of payments and allowances commissioned by the Health Minister last year.
It comes as student nurses get set to hold a demonstration in Dublin later, over a delay in publishing the report.
Third year general nursing student, Ciaran Freeman, says they feel used when on placement.
"A lot of us have taken to calling it 'cynical placement' now.
"We've started to see how our roles in the hospital are used to soften chronic short staffing levels throughout the HSE.
"It makes you rather cynical about the fact that we aren't even being given adequate allowances to cover simple travel expenses or accommodation expenses to cover our placement."
