Chile's Senate unanimously approved a 10% wage increase for public workers on Thursday, ending a strike by 400,000 state employees that had halted garbage collection, and affected health and school services.

After the unanimous 32-0 vote in the Senate, union leaders announced the end of the four day-strike.

The Senate vote came hours after Chile's lower house rejected a 9.5% wage increase. Following the lower house loss, the government had increased its wage hike offer to 10% and senators approved the sweetened deal.

"The workers have gained a victory," said Arturo Martinez, leader of the Workers Central Union, the country's largest labor federation, as he announced the end of the strike.

The wage hike proposal now returns to the lower house for a vote, where it is expected to pass.

Strikers were asking for a 14.5% but had suggested a two-digit figure could end their stoppage.

The four-day strike had limited public health and school services in parts of Chile, as well as halting trash pickup.