The Government has agreed to support the Independent Arbitration Panel’s recommendation to increase secondary teachers’ base salaries by 14.5 per cent by December 2024, Minister of Education Jan Tinetti announced today.

“We are absolutely committed to investing in our teachers to attract and retain the best to teach our young people and set them up to succeed and have a life full of choices,” says Tinetti.

"The increase offered by the Government today would see beginner teachers receive an annual increase of almost $10,000, in addition up to the $7,210 lump sum payment.

“The offer provides an increase of 36 per cent for teachers at the top of the pay scale since we’ve been in Government, compared to a 10 per cent increase under the last National Government.

“I know how disruptive the past few months have been for our students, young people and their parents. We all want our young people back in the classroom learning, and this offer reinforces our commitment to that."

Tinetti says the panel’s recommendation adds an extra cost of approximately $680 million to the $3.76 billion already set aside in the Budget to settle teachers’ and principals’ agreements.

"This includes an increase to other education collective agreements which will flow on from this decision.

“After careful consideration and weighing up the current challenging financial environment, the Government has agreed to find the money through savings from other parts of the Education Budget and Education’s Budget 2024 cost pressure allowance."

To meet the additional cost, the main savings of $374 million have been found within the education budget:

• Savings from Ministry of Education departmental funding
• Forecast staffing underspend mostly as a result of newer teachers being employed 
• Removal of the option to ‘bank staffing’* for all schools, excluding Kaupapa Māori and Māori Medium Education (from July 2025)
• Deferring the Te Ao Marama and Hobsonville Point Secondary School projects in the Public Private Partnership Schools Expansion Programme, and rephase the current operating funding

“The remaining $306 million will be pre-committed to the Budget 2024 allowance, specifically to the cost pressure allocation which the Minister of Finance sets at the start of the Budget process," says Tinetti.

"This is a balanced approach to increasing the pay of an important front-line workforce, while dealing with the broader fiscal pressures that the Government faces.

“Our Government has a proud track record of supporting teachers, who are the cornerstone of our education system.

“We’re proud of this offer and we hope the PPTA will be too."

The PPTA members will now vote on the new offer over the next week.