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Date 28 January 2026 | Circular 2026/02 | Category Employment Relations
This circular is about the recent settlements of the Secondary Principals’ Collective Agreement and the Area School Principals’ Collective Agreement and information on the applicable promulgated Individual Employment Agreements.
This circular does not replace any other.
It is intended for presiding members of school boards of all state and state-integrated secondary and area schools.
For more information, contact Te Whakarōputanga Kaitiaki Kura o Aotearoa New Zealand School Boards Association (NZSBA formerly NZSTA) about human resource issues generally on 0800 782 435 or 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 the Ministry's website.
The action needed is to:
- note the details of the settlement, including the new pay rates for secondary principals and area school principals
- offer the new Individual Employment Agreement (IEA) to principals who are not PPTA, SPANZ or NZEI members.
Introduction#
On 12 December 2025, the Secondary Principals’ Collective Agreement (SPCA) was signed by the PPTA, SPANZ and the Secretary for Education with a term effective for 30 months from 9 December 2025 and expires 8 June 2028.
On 18 December 2025, the Area School Principals’ Collective Agreement (ASPCA) was signed by the PPTA, NZEI and the Secretary for Education with a term effective 30 months from 18 December 2025 and expires 17 June 2028.
This circular provides a summary of the changes and new provisions agreed as part of the settlements. All collective agreements can be downloaded from the Ministry of Education’s website.
Secondary and Area School Principals’ Collective Agreement#
Key features of the settlements#
Remuneration
This settlement provides both secondary and area school principals with an increase to their roll-based salary scale of 4.7% over the 30-month term of the collective agreement. There are also additional increases to other salary components.
If you are covered by:
- the SPCA and you are a member of either the PPTA or SPANZ, you will get the new rates effective from 5 December 2025, or from the date you became a member if that occurred after 12 December 2025 (the date the collective was signed)
- the ASPCA and you are a member of either NZEI or PPTA, you will get the new rates effective from 18 December 2025, or from the date you became a member.
Education Payroll Limited (EPL) will pay these rates to employees covered by the Secondary Principals’ Collective Agreement in PP26 on 17 March, and to employees covered by the Area School Principals’ Collective Agreement in PP01 on 14 April, and will backpay to the employee’s effective date, as above.
School roll-based salary component + Extension of the U-grade
New pay rates including an extension of the U-grade remuneration component maximum from U16 to U19 (increase of 3 grades) have been agreed as follows:
| U Grade | Roll size | Current rate | Rate effective from 5 December 2025 (SPCA) Rate effective from 18 December 2025 (ASPCA) | Rate effective from 5 December 2026 (SPCA) Rate effective from 18 December 2025 (ASPCA) |
|---|---|---|---|---|
| U1 | 1–50 | $118,003 | $120,953 | $123,493 |
| U2 | 51–100 | $118,003 | $120,953 | $123,493 |
| U3 | 101–150 | $118,003 | $120,953 | $123,493 |
| U4 | 151–300 | $127,249 | $130,430 | $133,169 |
| U5 | 301–500 | $136,495 | $139,907 | $142,845 |
| U6 | 501–675 | $141,781 | $145,326 | $148,377 |
| U7 | 676–850 | $147,284 | $150,966 | $154,136 |
| U8 | 851–1025 | $152,789 | $156,609 | $159,898 |
| U9 | 1026–1200 | $156,531 | $160,444 | $163,814 |
| U10 | 1201–1400 | $160,273 | $164,280 | $167,730 |
| U11 | 1401–1600 | $165,733 | $169,876 | $173,444 |
| U12 | 1601–1800 | $171,195 | $175,475 | $179,160 |
| U13 | 1801–2000 | $176,300 | $180,708 | $184,502 |
| U14 | 2001–2200 | $181,407 | $185,942 | $189,847 |
| U15 | 2201–2400 | $185,876 | $190,523 | $194,524 |
| U16 | 2401–2600 | $190,347 | $195,106 | $199,203 |
| U17 | 2601–2800 | $200,106 | $204,203 | |
| U18 | 2801–3000 | $205,106 | $209,203 | |
| U19 | 3001+ | $210,106 | $214,203 |
Amendment to career structure payments
The Career Structure provisions have been amended to reflect the importance of developing leadership talent within and across schools.
In addition to this change, the Career Structure Payment will increase by $1,500 for Beginning, Experienced, and Leading principals from 28 January 2026.
| Stage | Current rate | Rates effective from 28 January 2026 |
|---|---|---|
| 1 – Beginning principalship | $3,714 | $5,214 |
| 2 – Experienced principal | $7,428 | $8,928 |
| 3 – Leading principal | $11,143 | $12,643 |
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.
Secondary Principals’ Collective Agreement (only)#
Introduction of an NCEA Change Implementation Allowance#
Secondary principals will receive an NCEA Change Implementation Allowance of $15,000 to recognise the significant additional leadership and coordination responsibilities associated with implementing changes in our national secondary school qualification.
| Pay period | NCEA Change Implementation Allowance Payment |
|---|---|
| 10 December 2025 to 23 December 2025 | $3,000 |
| 24 June 2026 to 7 July 2026 | $3,000 |
| 9 December 2026 to 22 December 2026 | $3,000 |
| 23 June 2027 to 6 July 2027 | $3,000 |
| 8 December 2027 to 21 December 2027 | $3,000 |
Increase to the Leadership in Realising Youth Potential payment
The base rate for the Leadership in Realising Youth Potential payment will increase by $1,500 over 2 years.
| U-grade | Current Rate | Rates effective from 28 January 2026 | Rates effective from 28 January 2027 |
|---|---|---|---|
| U1 | $8,500 | $9,500 | $10,000 |
| U2, U3, U4, U5, U6 | $12,000 | $13,000 | $13,500 |
| U7, U8, U9 | $13,500 | $14,500 | $15,000 |
| U10, U11, U12, U13 | $15,000 | $16,000 | $16,500 |
| U14, U15, U16, U17, U18, U19 | $16,000 | $17,000 | $17,500 |
Alignment of rates of pay for the Māori Immersion Teaching Allowance#
Teaching time curriculum taught in Te Reo Māori | Rates from 5 December 2025 | ||
|---|---|---|---|
Level 1 (81% to 100%) | Level 2 (51% to 80%) | Level 3 (31% to 50%) | |
| Base allowance | $6,000 | $5,000 | $4,000 |
| After 3 years' service | +$4,000 | +$2,000 | |
| Total after 3 years' service | $10,000 | $7,000 | |
| After 6 years' service | +$6,000 | +$3,000 | |
| Total after 6 years’ service | $12,000 | $8,000 | $4,000 |
Other terms#
Amendments will be made to provisions relating to disregarded sick leave, annual leave records, and medical retirement.
The agreement will recognise previous service in a converted school for employees transferred to a charter school under clause 119, Schedule 1 of the Education and Training Act 2020, provided service has been continuous.
The full terms of settlement that parties have agreed are provided in the collective agreement, here.
Secondary Principals’ Collective Agreement 2025–2028
In summary, the parties:
- commit to discussing broad comparability in overall remuneration changes for principals and teachers in state and state integrated schools
- agree principals’ current dismissal-related entitlements will be maintained for the duration of this agreement
- will participate in a working group to consolidate hard‑to‑staff allowances into fewer, more meaningful, better targeted payments to support recruitment and retention.
Area School Principals’ Collective Agreement (only)#
Introduction of an NCEA Change Implementation Allowance#
Area school principals will receive an NCEA Change Implementation-allowance of $15,000 to recognise the significant additional leadership and coordination responsibilities associated with implementing changes in our national area school qualification.
Increase to the Area School Principal Payment#
The base rate for the Area School Principal Payment will increase by $1,500 over 2 years.
| U-grade | Current Base Rate | Rates effective from 28 January 2026 | Rates effective from 28 January 2027 |
|---|---|---|---|
U1 | $8,500 | $9,500 | $10,000 |
U2, U3, U4, U5, U6 | $11,500 | $12,500 | $13,000 |
U7, U8, U9 | $13,500 | $14,500 | $15,000 |
U10, U11, U12, U13 | $15,000 | $16,000 | $16,500 |
| U14, U15, U16, U17, U18, U19 | $16,000 | $17,000 | $17,500 |
Other terms#
Amendments will be made to provisions relating to disregarded sick leave.
The agreement will recognise previous service in a converted school for employees transferred to a charter school under clause 119, Schedule 1 of the Education and Training Act 2020, provided service has been continuous.
The full terms of settlement that parties have agreed are provided in the collective agreement, here.
Area School Principals’ Collective Agreement 2025-2028
In summary, the parties:
- agree that from the date of ratification until 27 January 2026, the ASPCA will apply to a list of schools that is appended to the Area School Principals’ Collective Agreement as Appendix 1. From 28 January 2026, a new definition of “area school” will apply
- agree principals’ current dismissal-related entitlements will be maintained for the duration of this agreement.
- will participate in a working group to consolidate hard to staff allowances into fewer, more meaningful, better targeted payments to support recruitment and retention.
Individual Employment Agreements (IEAs)#
We have updated the IEAs for both SPCA and ASPCA and these are available on the Ministry’s website.
For employees who are not NZEI, PPTA or SPANZ members, the new rates will be effective from the date the employee and employer sign the IEA.
The new rates will be effective from the date the employer and the employee sign the IEA, and cannot be prior to 19 December 2025 for secondary school principals, or 28 January 2026 for area school principals.
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.
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]
