NHS staff on Agenda for Change terms and conditions will receive a 5.5% pay award after the Welsh Government accepted the pay recommendations from independent pay review bodies in full.
Doctors and dentists, including GPs and salaried GPs, will receive a 6% pay award, with an additional £1,000 for junior doctors.
Morgan said: 'People across Wales have told us over the summer that public sector workers are the backbone of the services we all rely on – from the nurses in our NHS to teachers in classrooms across Wales.
'They want them to be fairly rewarded for the vital work they do. These pay awards reflect how we value them and respect their hard work.'
In response, director of the Welsh NHS Confederation Darren Hughes, said: 'Industrial action has taken a real toll on the health service in recent years, not least on patients due to the cancellation of appointments and operations. We hope today's news takes us another step towards avoiding disruption to health services from industrial action.
'However, it is crucial that the pay award is funded in full by both the UK and Welsh governments as the NHS continues to work hard at recruiting and retaining staff and driving down waiting lists against the backdrop of an already very tight financial position.'