Almost 1000 New South Wales Health care workers have been stood down or quit because they refused to get the COVID-19 vaccine.

NSW Health confirmed 995 of its 170,000 workforce have resigned or been sacked after refusing the vaccine, the Sydney Morning Herald reported.

Currently, there are also about 6000 health workers who are in isolation due to COVID-19 exposure.

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This comes despite National Cabinet agreeing to extend the workers who are exempt from close contact restrictions.

Health care workers now only need to obtain a negative rapid antigen test result before returning to work.

This is aimed to assist the pressure plaguing the health system and to stop supply chain disruptions in other industries.

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The health system is facing extreme pressure as hospitalisations and ICU admissions continue to rise in the state's surging Omicron wave.

Yesterday, there were 2525 people in hospital, 184 of whom are in intensive care.

NSW Premier Dominic Perrottet said yesterday in terms of hospitalisations and ICU admissions, the health system was outstripping even the most optimistic modelling.

"So that is encouraging, reassuring and pleasing," he said.

Mr Perrottet said the health system was nonetheless under pressure.

"It is going to be a difficult few weeks ahead but the tracking that we are releasing today is very reassuring and encouraging given where we sit today in in the pandemic."

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NSW recorded 63,018 COVID-19 cases yesterday and 29 deaths.

Of the positive cases, 37,938 were from rapid antigen tests that NSW Health said included 24,329 results from the past seven days.