The payment has been designed to cover the basic rate of tax and national insurance.
Health and social care staff in Wales are to be given a one-time bonus for their hard work during the pandemic.
The payment of £735 per person is designed to cover the basic rate of tax and national insurance contributions meaning workers will take-home a bonus of £500.
It is estimated the payment will benefit 221,945 people in Wales including 103,600 social care staff, 90,000 NHS Wales staff, 2,345 deployed students, and 26,000 primary care staff (including pharmacy, GP, dental, and optometry staff).
The bonus is further to the £500 special payment for care home and domiciliary care workers announced in May 2020.
Wales is now the third devolved Government to issue bonuses to the health and social care workers after Scotland’s first minister announced plans in November and Northern Ireland’s health minister in February.
England is now the only part of the UK not to offer its staff a financial reward for their hard work.
Announcing the bonus, Minister for Health and Social Services Vaughan Gething said; “Over the last year, Wales’ NHS staff and social care staff have shown a remarkable amount of commitment and courage from the initial outbreak of the pandemic right through to the current second wave.
“This payment expresses our gratitude to our NHS and social care workforce for their extraordinary contribution in keeping Wales safe.”