The former MHKs have agreed to receive £22,561 instead of the £33,700 originally awarded by the Employment and Equality Tribunal.
The Treasury fought the case in the tribunal but lost. However, it appealed and, ahead of the appeal, came to the out-of-court settlement with the former MHKs.
The duo, who lost their seats in the 2021 general election, argued that the rules for cash payments for ousted MHKs were ageist.
Politicians over 60 were not eligible for a resettlement grant. Those under are entitled to a payment, which is a kind of redundancy payment.
Mr Boot and Mr Perkins were awarded £33,700 after a tribunal ruled they had been discriminated against by the Treasury.
In November, the Employment and Equality Tribunal ruled the pair’s ineligibility to be given a pay out under the Members of Tynwald (Resettlement Grant) Scheme 2018 because they were both aged over 60 broke equality laws.
By the time that ruling was handed down, Tynwald members had already voted to remove the age limit and cut the grant to a third.
Mr Boot, who was 67 at the time of the poll, had been an MHK since 2015. He represented Glenfaba and Peel.
Mr Perkins, who was 66, was elected in 2016 in Garff.
In a statement the Treasury said it welcomed ‘the conclusion of the matter’.
‘The decision to appeal was carefully considered and reached while taking into account the legal principles in question and significant public interest,’ it said.
‘The relevant legislation will be updated following agreement by Tynwald.’