From March 2024, student police officers will be paid while completing a 16-week course at the Goulburn Police Academy.
They will receive a total salary of about $30,984 that works out to be $1360 per week plus superannuation and around $380 in award-based allowances.
Once they've finished the course, students will be employed as probationary constables.
The NSW Police workforce currently has 1500 vacancies and the incentive is expected to help boost employment numbers.
Premier Chris Minns said the police force was stretched and overworked, and that wouldn't be fixed without recruiting and retaining more officers.
"We want to attract a diverse new cohort of NSW police officers. My message to anyone who has considered joining the NSW Police is that now is the time to apply," he said.
The announcement brings NSW in line with other states who already pay police trainees allowances to undertake study.
Current cohorts they will receive a scholarship from their education provider to ensure they are not worse off.
The incentive is aimed to increase the number of mature age students, women and people from low-income households by supporting their ability to study.
NSW Police Commissioner Karen Webb said it would be a "game changer" for the organisation.
"Breaking down the barriers for people to leave one job and start with us without being financially disadvantaged is the most attractive incentive we've been able to offer for many years," she said.
"I know all our current hard working, dedicated officers will be very relieved. The cavalry is coming."
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