Area School Principals' Collective Agreement
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Part 3: Remuneration
Area School Principals' Collective Agreement
Effective: 3 July 2023 to 2 July 2025
3.1 Principals’ Remuneration
3.1 A Principal’s core remuneration shall comprise the school roll-based salary component (U grade) specified in clause 3.1.1 and the staffing based salary component (supplementary) specified in clause 3.1.2, the decile payment or Equity Index payment (where applicable) in clause 3.1.3, the Area School Principal’s Payment in clause 3.8 and the Area School Principals’ Career Structure payment (where applicable) in clause 4.4.
3.1.1 The Principal’s salary shall be determined in accordance with the grade of the school (i.e. U1-U16):
School roll based salary component (U-grades)
U-Grade Rates prior to
3 July 2023
3 July 2023
3 July 2024
2 December 2024
U1 $98,031 $103,913 $107,030 $118,003 U2 $98,031 $103,913 $107,030 $118,003 U3 $106,170 $112,540 $115,916 $118,003 U4 $114,489 $121,540 $124,999 $127,249 U5 $122,808 $130,176 $134,082 $136,495 U6 $127,564 $135,218 $139,274 $141,781 U7 $132,515 $140,466 $144,680 $147,284 U8 $137,468 $145,716 $150,088 $152,789 U9 $140,835 $149,285 $153,764 $156,531 U10 $144,201 $152,853 $157,439 $160,273 U11 $149,114 $158,061 $162,803 $165,733 U12 $154,028 $163,270 $168,168 $171,195 U13 $158,621 $168,138 $173,182 $176,300 U14 $163,216 $173,009 $178,199 $181,407 U15 $167,237 $177,271 $182,589 $185,876 U16 $171,260 $181,536 $186,982 $190,347
3.1.2 Staffing based salary component
In addition to the school roll-based salary component specified in clause 5.2.2, the salary of principals shall include the staffing-based salary component calculated according to the following formula:
Total Teacher Staff (TTS) Formula ≤ 13 ($822 * TTS) + $3,201 > 13 ($162 * TTS) + $12,231
The staffing funding component is based on total teacher staffing that includes entitlement, attached and additional staffing, in addition to entitlement staffing transfer, teacher specific time allowances and staffing for attached units under School Boards as determined in the Ministry | Te Tāhuhu staffing notice. It does not include teachers who may be employed above entitlement from a Board’s operations funding.
Note 1: Total Teaching Staff (TTS) shall be based upon the higher of the GMFS staffing notice of the confirmed staffing allocation as on 1 March in the following year, as per the Ministry | Te Tāhuhu staffing notice.
Note 2: Any Principal who continues to be eligible for the grandparenting of the previous supplementary grant formula as per the conditions of the promulgated Area Principals IEC1998, shall have this formula used to calculate the salary entitlement under 3.1.2, according to any conditions relating to that grandparenting applying at that time.
3.1.3 Equity Index Funding
Until 27 January 2024, principals whose school held a decile rating of 1, 2, 3 or 4 will continue to receive a decile payment according to the tables in Schedule F.
From the start of the 2024 school year, the decile payment will cease and principals in schools with an Equity Index number of 478 to 569 shall be paid an Equity Index payment in addition to base salary as specified in 3.1.1 and 3.1.2 above . The Equity Index payment for each principal will be calculated by multiplying the Equity Index number of their school by nine, with the calculation to be undertaken annually.
Where a principal’s remuneration is reduced either:
- in the translation from the previous decile-based payment to the Equity Index payment, or;
- because the annual Equity Index review process results in their school falling below the Equity Index number of 478 that entitles them to an Equity Index payment –
Then their salary will be protected for a 24-month period from the point of change.
3.2 Definition of Roll
3.2.1 For the purposes of determining a Principal’s U grade as per 3.1.1 and 3.1.3 “roll” shall mean the greater of the GMFS roll or the 1 March roll of the following year, as determined by the relevant Staffing Order in Council, except that students who are included in the Ongoing Resourcing Scheme (at 1 July for the September school roll purposes) shall be counted on the following basis:
- Students classified as “very high” under the Ongoing Resourcing Scheme shall be counted as six instead of one;
- Students classified as “high” under the Ongoing Resourcing Scheme shall be counted as three instead of one.
3.3.1 The Principal shall be entitled to reimbursement of the actual and reasonable expenses incurred by the Principal in the proper performance of the Principal's duties under this agreement in accordance with the reimbursement provisions applying to teachers in the school, or as may be approved by the Board. Reimbursement shall be made out of the school's operational funds.
3.3.2 The remuneration received by the Principal pursuant to this agreement shall be deemed to compensate fully the Principal for all time worked and duties performed under this agreement.
3.3.3 Nothing in this agreement shall affect the Principal's entitlement to continue making contributions to the Government Superannuation Fund and to receive all benefits that the Principal may be entitled to under the Government Superannuation Fund Act.
3.4 Changes to U grade and Decile or Equity Index Funding
3.4.1 Where the salary rate of a Principal (as specified in clause 3.1.1) changes as a result of a drop in the U grade of the position (determined by the greater of the GFMS roll or the confirmed 1 March roll of the following year) and the Principal’s existing school roll based salary component exceeds the rate for the new grade the following shall apply:
- The amount of the Principal’s U grade payment above the rate for the new grade will be protected for a period of 24 months from the beginning of the school year inclusive of the school year that the new U grade is confirmed in the 1 March roll;
- After the 24 month period of salary protection of the U grade payment, the Principal shall be paid no more than the rate for the new grade;
- Salary protection under this clause shall lapse if the Principal accepts an alternative position.
Note: For clarity, salary protection in 3.4.1 includes the salary component according to the U grade but does not include the salary component generated by staffing in 3.1.2
3.4.2 Where the U grade of the Principal’s position increases, (as determined by the greater of the provisional staffing roll or the confirmed 1 March roll of the following year), the Principal will move to the new U grade rate from the beginning of the new school year in which the 1 March roll is determined.
- In the event of a change in the school’s decile or equity index rating the change in salary ( as specified in clause 3.1.3) will be effective from the beginning of the school year following the announcement of the decile or equity index change.
- Where the change to the decile or equity index would reduce the salary of the Principal, the existing decile or equity index funding component of the salary, as covered in clause 3.1.3 will be protected for a period of 24 months from the beginning of the school year following the announcement of the decile or equity index change.
- In the event that the decile or equity index component of the Principals’ current remuneration structure is removed the exiting rate will be protected for a period of 24 months from the first day the change takes effect.
3.5 Māori Immersion Teaching Allowance
3.5.1 The purpose of this allowance is to give practical recognition to te reo Māori as a taonga to be actively protected under te Tiriti o Waitangi and to recognise the special and valued skills and knowledge Kaiako and tumuaki must have to teach the curriculum in te reo Māori.
3.5.2 A full-time principal required to teach in te Reo Māori immersion classes at the level and teaching time described in 3.5.3 is eligible for the allowance if they have the language proficiency necessary to teach the curriculum in te reo Māori for the period required by the language immersion level in which they are engaged.
3.5.3 All principals who teach te reo Māori immersion classes at levels one, two or three for at least six timetabled hours per week, shall receive the allowance that relates to the highest language Level in which they are teaching and their years of service at that level as provided for in the table below.
Current Rates Rates from
27 July 2023
27 July 2023
Current Rates Rates from
27 July 2023
Te Reo Māori
(81% to 100%)
(51% to 80%)
(51% to 80%)
(31% to 50%)
(31% to 50%)
Base allowance $4,000 $6,000 $4,000 $5,000 $4,000 $4,000 After 3 years'
+ $2,000 + $4,000 - + $2,000 Total after 3 years'
$6,000 $10,000 $7,000 After 6 years'
+ $4,000 +$6,000 - + $3,000 Total after 6 years $8,000 $12,000 $4,000 $8,000 $4,000
3.5.4 Each allowance provided for in clause 3.5.3 will be pro-rated for part-time principals who are required to teach in te reo Māori (based on the total hours taught in te Reo Māori by the part-time principal).
3.5.5 A principal required to teach in te Reo Māori can only receive one allowance i.e., they cannot receive a Level 1, a Level 2, and/or a Level 3 allowance concurrently. The employer will advise when a change of circumstances alters the allowance a teaching tumuaki | principal is eligible to receive.
3.5.6 Service for the payment of the Level 2 allowance shall include any periods of teaching service in Māori immersion Level 1 or Level 2. Service for the payment at Level 1 shall include any teaching service at Level 1 Māori immersion only.
3.6 Area Schools High Priority Principals Allowance
3.6.1 The Area Schools High Priority Principals Allowance (ASHPPA) provisions below shall apply to Principals employed in those area schools identified by the Ministry of Education | Te Tāhuhu o te Mātauranga as requiring additional support for recruitment and retention. The schools identified by the Ministry | Te Tāhuhu are those set out in separate advice and may be changed by the Ministry | Te Tāhuhu as needs change, no more than annually, after consultation with the unions.
3.6.2 Full-time fully certificated teachers employed as Principal on a permanent or long-term relieving basis of two consecutive terms or more shall be entitled to receive the allowance of $3,000 per annum.
3.6.3 Full-time teachers employed as Principal on a permanent or long-term relieving basis of two consecutive terms or more who are provisionally certificated or certificated subject to confirmation shall be entitled to receive the allowance of $2,000 per annum.
3.6.4 Principals moving to a school which has been designated as ASHPPA status are entitled to either transfer and removal provisions as provided for in Schedule C, or the National Relocation Grant. On completion of a minimum of three years’ continuous service in one or more ASHPPA schools a Principal shall have access to the transfer and removal provisions of this Agreement when moving from this category of school to another Principal position in a state or integrated school.
3.6.5 In the event that a school is removed from the ASHPPA coverage, a Principal who was in receipt of the ASHPPA immediately prior to that change, shall continue to receive the allowance until the end of the school year. Principals who are so affected shall retain their entitlement to the transfer and removal provisions of this Agreement for a further three years.
3.6.6 A principal in receipt of the Principal Recruitment Allowance is not entitled to receive the Area Schools High Priority Principals Allowance at the same time.
3.7 Retirement Savings
3.7.1 Principals are eligible to join KiwiSaver schemes in accordance with the terms of those schemes.
3.7.2 Employer or government contributions to retirement or superannuation schemes which are closed to new members (and include the Teachers’ Retirement Savings Scheme and the Government Superannuation Fund), shall continue in accordance with the terms of those schemes.
3.7.3 A Principal is not eligible to receive employer or government contributions to a KiwiSaver scheme where government or employer contributions are made to another retirement or superannuation scheme of which that Principal is a member.
3.8 Area School Principals’ Payment
3.8.1 Each Area School Principal shall receive an additional annual Area School Principals’ Payment, paid fortnightly, comprising two components:
a. A base rate, as below:
U-grade Base Rates U1 $8,500 U2, U3, U4, U5, U6 $11,500 U7, U8, U9 $13,500 U10, U11, U12, U13 $15,000 U14, U15, U16 $16,000
b. A per Full Time Teacher Equivalent (FTTE) rate of $47.75.
3.8.2 This payment is acknowledgement of the complex role of the Area School Principal as educational and professional leader across all years of the curriculum.
Note: The FTTE payment is based on the provisional entitlement staffing (GMFS) minus one.
3.9 Allowance for Community of Schools | Kāhui Ako Leadership Role and the Recognition of Other Leadership Responsibilities
3.9.1 Each Community of Learning | Kāhui Ako will be entitled to recruit a Community of Learning | Kāhui Ako Leadership role (“the role”) from within the Community of Learning | Kāhui Ako, and be entitled to allocate an allowance to the Principal undertaking that role.
3.9.2 The following are two (2) approved arrangements for the appointment of an area school principal to a Community of Learning | Kāhui Ako Leadership role within a Community of Learning | Kāhui Ako that has an area school(s):
- One Principal appointed to the Community of Learning | Kāhui Ako Leadership role who is paid an allowance of $30,000 per annum; or
- one Principal appointed to the Community of Learning | Kāhui Ako Leadership role who is paid an allowance of $25,000 per annum; and
- up to two Principals appointed to undertake other leadership responsibilities, defined in substance and time by the Community of Learning | Kāhui Ako’s shared achievement plan, who are each entitled to receive an allowance of $2,500 per annum. A Principal will be selected on the basis of their ability to provide the specific expertise required.
Note: That in both arrangements this is in addition to other remuneration, including career structure payments.
3.9.3 Each appointment to the Community of Learning | Kāhui Ako Leadership role is subject to an agreed selection process and criteria (affirmed by an external professional adviser).
3.9.4 The allocation of other leadership responsibilities to a Principal (or Principals) is defined in substance and time by the Community of Learning | Kāhui Ako’s shared achievement plan.
3.9.5 The period of the appointment for the Community of Learning | Kāhui Ako Leadership role or for Principal(s) allocated other leadership responsibilities will be determined by the Community of Learning | Kāhui Ako according to its shared achievement plan, subject to the agreement of the Principal to be appointed and their employing Board. The period of the appointment shall be for a fixed period of up to two (2) years, subject to clauses 3.9.6, 3.9.8, 3.9.10 and 3.9.11 below.
3.9.6 The appointment of a Principal to the role outlined in clause 3.9.1 may be renewed by the employing Board for a maximum of one (1) further period of up to two (2) years, subject to clauses 3.9.8, 3.9.10 and 3.9.11 below, the agreement of the Principal and employing Board, and any conditions set by the Secretary under clause 3.9.7 below.
3.9.7 Where a Community of Learning | Kāhui Ako is unable to make an appointment to the Community of Learning | Kāhui Ako Leadership role from the existing Principals from within the Community of Learning | Kāhui Ako, the Secretary for Education may agree to alternative appointment arrangements other than those arrangements outlined in clause 3.9.2 above. This may result in alternative arrangements for the payment of the allowance(s) outlined in clause 3.9.2 above and for the provision of the time allowance outlined in 3.9.9 below. This approval may be subject to conditions.
3.9.8 Where an acting appointment to the Community of Learning | Kāhui Ako Leadership role becomes necessary, the allowance, or part thereof as appropriate, will be payable to the appointee(s) undertaking that acting role.
3.9.9 The employing Board will receive a 0.4 FTTE time allowance for the period of the appointment to enable the functions of the Community of Learning | Kāhui Ako Leadership role to be fulfilled. For clarity, this does not apply in respect of Principals allocated other leadership responsibilities.
3.9.10 The allowance for the Community of Learning | Kāhui Ako Leadership role or for Principals allocated other leadership responsibilities may be suspended by the employing Board where the Principal is undergoing competency processes as outlined in clause 6.5 and/or disciplinary processes as outlined in clause 6.2.
3.9.11 The allowance for the Community of Learning | Kāhui Ako Leadership role or for Principal(s) allocated other leadership responsibilities will cease to be payable in the following circumstances:
- where the Principal ceases to be employed as a Principal at that school; or
- where, with the agreement of the employing Board, in consultation with the Community of Learning | Kāhui Ako, the Principal voluntarily relinquishes the role; or
- where the fixed period of the allowance ends, regardless of whether the Principal remains employed at the school; or
- where the Board becomes ineligible to make the allowance available (In such circumstances the Principal will be provided with three months’ notice, except where there is a lesser period due to the expiry of the fixed term).
3.10 Principal Recruitment Allowance
3.10.1 The Secretary for Education may grant approval to a Board to pay its Principal an allowance of $50,000 per annum for a fixed period of up to three years subject to clauses 3.10.2 to 3.10.5 below.
3.10.2 The approval is subject to any conditions determined by the Secretary.
3.10.3 The allowance may be renewed by the Board subject to the prior approval of the Secretary, for a maximum of two (2) further periods of up to two (2) years each.
3.10.4 The allowance may be suspended by the employing Board while the Principal is undergoing competency processes, or disciplinary processes (or both) as outlined in clause 6.5 and/or 6.2 respectively.
3.10.5 The allowance will cease to be payable in the following circumstances:
- Where the Principal ceases to be employed as a Principal at that school; or
- When the fixed period of the allowance ends, regardless of whether the Principal remains employed at that school.
3.11 Pacific Bilingual Immersion Teaching Allowance (PBITA)
3.11.1 The purpose of this allowance is to recognise the additional skills teachers must have to deliver teaching and learning through a Pacific language in a Pacific bilingual or immersion context in a school or kura.
3.11.2 A principal is eligible for an allowance described in 3.11.3 if they meet the minimum teaching time requirements in that clause and if they have the language proficiency necessary to teach the curriculum in a Pacific language for the period required by the Pacific bilingual or language immersion level in which they are engaged.
3.11.3 From 28 January 2024, all eligible principals teaching in a Pacific language in a Pacific bilingual or immersion unit/programme/class (as defined by the Ministry in School Roll Return Guidelines) shall receive the allowance that relates to the highest language Level in which they are teaching and their years of service teaching in a bilingual or immersion setting as provided for in the table below:
PBITA From 28 January 2024 From 28 January 2024 Teaching time that curriculum is
taught in a Pacific language
(81% to 100%)
(51% to 80%)
Base allowance $4,000 $4,000 After 3 years' service +$2,000 +$1,000 Total after 3 years $6,000 $5,000 After 6 years' service +4,000 +$2,000 Total after 6 years $8,000 $6,000
3.11.4 A principal can only receive one allowance i.e., they cannot receive a Level 1 and Level 2 allowance concurrently. The employer will advise when a change of circumstances alters the allowance a principal is eligible to receive.
3.11.5 Service for the payment of the Level 2 allowance shall include any teaching service at Pacific or bilingual immersion Level 1 or Level 2. Service for the payment at Level 1 shall include any teaching service at Pacific or bilingual immersion Level 1 only.
3.12 Cultural Leadership Allowance for Bilingual Settings
3.12.1 From 28 January 2024, tumuaki | principals who lead schools and kura which offer Level 1 or Level 2 te reo Māori or Pacific language immersion programmes (as defined by the Ministry in School Roll Return Guidelines) are entitled to an allowance of $5,000 per annum.