Date 21 October 2025 | Circular 2025/04 | Category Employment Relations
This circular is about the recent settlement of the Primary Principals’ Collective Agreement with the Primary Principals’ Collective Bargaining Union (PPCA-PPCBU 2025-2027) – and information on the applicable promulgated individual employment agreement.
This circular does not replace any other.
It is intended for presiding members of school boards of all state and state-integrated primary schools.
For more information contact Te Whakarōputanga Kaitiaki Kura o Aotearoa New Zealand School Boards Association (NZSBA formerly NZSTA) about human resource issues generally.
Freephone: 0800 782 435 (NZ only)
Email: [email protected]
You can also email the Ministry of Education's Employment Relations Unit if you have questions about the settlement or the new collective agreement.
Email: [email protected]
All collective agreements for school staff can be found on our website.
The action needed is to:
- note the details of the settlement, including the new pay rates for principals covered by the collective agreement
- offer the new individual employment agreement (IEA) to existing principals who are not PPCBU or NZEI members, once it is promulgated.
Introduction#
On 20 October 2025, the agreement was signed by the Primary Principals’ Collective Bargaining Union and the Secretary for Education.
The term of the agreement is 26 months from 17 October 2025 to 17 December 2027.
This circular provides a summary of the changes and new provisions agreed as part of the settlement. The full collective agreement can be downloaded our website.
Key features of the settlement#
Remuneration#
New pay rates have been agreed as follows.
Rates effective
School roll-based salary component.
| U Grade | 2 December 2024 | 17 October 2025 | 17 October 2026 |
|---|---|---|---|
| U1 | $118,003 | $120,953 | $123,493 |
| U2 | $118,003 | $120,953 | $123,493 |
| U3 | $118,003 | $120,953 | $123,493 |
| U4 | $127,249 | $130,430 | $133,169 |
| U5 | $136,495 | $139,907 | $142,845 |
| U6 | $141,781 | $145,326 | $148,377 |
| U7 | $147,284 | $150,966 | $154,136 |
| U8 | $152,789 | $156,609 | $159,898 |
| U9 | $156,531 | $160,444 | $163,814 |
| U10 | $160,273 | $164,280 | $167,730 |
| U11 | $165,733 | $169,876 | $173,444 |
| U12 | $171,195 | $175,475 | $179,160 |
| U13 | $176,300 | $180,708 | $184,502 |
| U14 | $181,407 | $185,942 | $189,847 |
| U15 | $185,876 | $190,523 | $194,524 |
| U16 | $190,347 | $195,106 | $199,203 |
The offer provides an increase to their roll-based salary scale of 4.7% over the 26-month term of the collective agreement. There are also additional increases to other salary components.
These rates will be effective from 17 October 2025 for employees who are PPCBU members, or from the membership join date if they joined later than 20 October (the date the collective was signed).
The effect of section 57 of the Employment Relations Act 2000 is that primary principals who have dual union membership will continue to be covered by the existing NZEI collective agreement 2023 – 2025.
For employees who are not PPCBU members, the new rates will be effective from the date the employee and employer sign the IEA.
Education Payroll Limited will pay these rates to employees covered by the collective agreement no later than 23 December 2025 and will backpay to the employee’s effective date, as above.
For employees covered by an IEA, Education Payroll Limited will pay the new rates as soon as is practicable once advised that the new IEA has been signed.
Increase to leadership in literacy and numeracy component
The base rate for leadership in literacy and numeracy will increase to $10,000 from 28 January 2026.
Amended primary principals’ career structure
| Criteria | Beginning Principal | Developing Principal (acquiring/ acquired) | Experienced Principal (applying) | Leading Principal (sharing) |
|---|---|---|---|---|
| Rates effective from 17 October 2025 | NIL | $3,700 | $6,900 | $10,200 |
Unified pay system
The unified pay system is renewed for the term of the agreement to provide a mechanism to maintain a unified pay system for principals in the state and state integrated compulsory education sector.
Introduction of a principal mentor allowance
Principals selected to be a mentor in the Aspiring and Beginning Principals’ Programme will be provided with an allowance of $5,000 per annum.
Professional development for principal leadership
The collective introduces a provision for principals to access a payment of $6,000 in both 2026 and 2027, paid to school boards, to be used for professional learning and development activities in accordance with specific criteria.
The fund criteria and supporting guidance will be published and shared with principals and school leaders prior to the first payment being made on a date to be determined in Term 1 2026.
Increase to specialist school principals’ allowance
The collective increases the allowance to $10,000 for those principals employed at one of the specified specialist residential schools, and an increase to $5,000 for those principals at other specialist schools.
Mileage reimbursement
The transport allowance rate will increase from 83 cents to 95c per kilometre.
Guidance on cellphone expenditure
The Ministry agrees to commission guidance from the NZSBA to provide advice to school boards regarding cellphone expenses incurred in the duties of a principal, and that this advice will be distributed to school boards and school leaders.
Other terms
The Ministry agrees to consult with the PPCBU on the administrative processes for principal sabbaticals with a view to ensuring that the assessment of candidates is fair and fit for purpose.
PCCBU agrees to be part of a discussion group on hard to staff allowances by consolidating them into fewer, more meaningful, better targeted, and more purposeful allowances that are more effective in supporting recruitment and retention in hard to staff schools.
The Ministry and PPCBU agree to undertake a review of the structure of principal remuneration, during the term of the agreement, to assess whether the structure of principal remuneration is fit for purpose to support the achievement of Government and sector priorities.
There will be changes to clauses for disregarded sick leave, and the rental subsidy specified in removal expenses.
The collective will recognise previous service in a converted school for employees who were transferred to a charter school under clause 119 of Schedule 1 of the Education and Training Act 2020, provided the employee’s service is continuous.
Individual employment agreements (IEAs)#
We are working on an updated individual employment agreement and are aiming to promulgate this no later than 7 November 2025.
The new rates will be effective from the date the employer and the employee sign the IEA.
Education Payroll Limited will pay the new rates as soon as is practicable once advised that the new IEA has been signed.
Make sure you are using the most up-to-date letter of offer of employment for new employees, available on NZSBA’s website.
Issued by Tim Tucker, Manager, Employment Relations and Payroll Operations, Te Pou Ohumahi Mātauranga | Education Workforce
Ministry of Education, National Office, 1 The Terrace, Wellington 6011, PO Box 1666, Wellington 6140, New Zealand
Phone: 04 463 8000
Email: [email protected]
