Funding instalments 2022
Learn about the funding instalments for 2022 that are associated with the settlement of both the support staff in schools and teacher aide pay equity claims.
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We will be providing additional funding in 2022 for both the Support Staff in Schools and Teacher Aide Pay Equity Settlements. The additional funding is provided specifically to enable Boards to pay all eligible teacher aides, and eligible support staff, the new pay equity rates.
Letters will be provided outlining schools’ funding instalments for the 2022 year. These will be made available on your School Data Portal.
These payments will appear on your operational grant notice under the Manual Payments heading.
How is the estimate calculated?
- Firstly, we gathered anonymised payroll information about all teacher aides employed by each school in 2020. We analysed the hours worked by each staff member in that role as well as their grade and step.
- We then looked at what each of those roles would translate to under the new relevant Collective Agreement (CA) or Individual Employment Agreement (IEA) pay rates. We used these pay rates to work out what the base cost to each school would be using the 2019 CA or IEA rates.
- In addition, we estimated the additional cost to each school using the same number of staff at their new pay rates, with the realisation that not all factors will remain the same every year.
- We calculated what the increase between the base cost and the estimated increased cost would be for each school, noting that a proportion of the overall increase is the amount that each school is required to meet and is already provided for within the annual increase schools received in their operations grants each year. This amount was deducted from the estimated increased cost to each school.
- The remainder is the additional funding that schools will be provided. The additional funding includes all pay costs (for example ACC, Kiwisaver).
Which settlements do the instalments provide funding for?
Your 2022 funding instalments will be split into two components:
- Non-Teach Support CA – for all settlement funding (Support Staff in Schools and Teacher Aide Pay Equity Settlement)
- CA One-Off Funding – for any approved and partially approved Exceptional Translation Funding applications.
These payments appear on your operational grant notice under the Manual Payments heading as follows:
- Non-Teach Support CA – for support staff and teacher aide pay equity top-up funding
- CA One-Off Funding – for Exceptional Translation Funding
When will schools receive funding for the 2022 year?
1 January 2022 instalment
On 1 January 2022, schools will receive their 2022 Quarter 1 instalment of funding to cover the estimated settlement costs for their teacher aides.
1 April 2022 instalment
On 1 April 2022, schools will receive their Quarter 2 instalment of funding for the 2022 year, including an interim wash up adjustment to adjust their funding with the for the most recent 2021 payroll information. The April funding notice will also provide details of the funding schools will receive as part of the July 2022 and October 2022 quarterly operational grants.
2022 final wash up
On 1 April 2023, schools will receive a final wash up that adjusts the estimated quarterly instalments for the actual teacher aides employed in 2022, based on the actual rates and actual hours worked.
We will continue to fund Tiaki allowances in 2022 using the same approach as we have in 2021. We have used your 2020 payroll data to estimate how much funding your school may require to cover increased Tiaki allowances for your teacher aides in 2022. This is included within the TAPESA component.
What information is being used for the 2022 funding calculations?
- January 2022 funding instalment:
Information about the employment of your teacher aide staff, for the 2021 school year, will not be confirmed until February 2022. Likewise, information about the employment of your teacher aide staff, for the 2022 school year, will not be confirmed until February 2023. For that reason, we will be using your 2020 teacher aide employment information for the initial calculation of your January 2022 funding instalment.
- April, July and October 2022 funding instalments:
Information about the employment of your teacher aide staff, for the 2022 school year, will not be confirmed until February 2023. For that reason, we will be using your 2021 teacher aide employment information for the initial calculations of your April, July and October 2022 funding instalments.
We know these estimates may not accurately represent the current teacher aides employed by your school, or the hours they will work in the coming year. However, it means we can provide you with some funding towards the cost of the settlement. A final adjustment will be calculated in April 2023.
Which staff are included in the additional funding?
All teacher aide staff covered by either a Collective Agreement (CA) or an Individual Employment Agreement (IEA) are covered by the additional funding.
We know schools receive funding for teacher aides from different sources, for example through ORS/IWS, ESOL, Operations Grant or school donations scheme through Ministry funding or from other agencies such as Health, Oranga Tamariki, MSD, ACC or through local fundraising.
Regardless of the funding source, if these roles are paid by your school, they will be included in the funding calculation.
Detailed breakdown of the calculation
All quarterly funding instalments provided during the year are estimates until a final wash-up is completed, in the following April. The estimates are calculated at a high level which means that they will not reconcile to your current payroll information.
We are aware that these estimates may not accurately represent the current teacher aides employed by your school, or the hours they will work in the coming year. However, by using previous years’ data to estimate your costs, it means we can provide you with funding towards the cost of the settlement in line with your regular funding instalments.
Additional information will be provided to all schools as part of the April 2022 final wash up that shows more information about how your funding is calculated and any adjustments that were required.
As school payroll information is confidential and the data that we received from payroll was anonymised, we will not be able to provide a breakdown for each of your staff members. Only the role information (position, grade, step, and rate) and hours worked were provided to us to calculate the estimated costs impact between 2021 and 2022.
Will the Ministry be monitoring how the additional funding is spent?
The purpose of this funding is for teacher aide staff to be paid the new fair pay equity rates. Funding has been provided to ensure that schools are able to meet their obligations. If IEA teacher aide staff pay rates do not correctly reflect the new pay equity rates, this may impact future funding.
If schools do not intend to offer staff the new pay rates, or if staff do not accept the new IEA, then your entitlement to this funding will reduce. If this is the case please contact us to adjust your funding so you avoid an overpayment.
Under/over funding impact
Where the estimated funding provided is less than the funding calculated using 2021 payroll data, you will receive the difference as part of your 1 April 2022 (quarter 2) funding instalment.
For some schools and kura the impact of the 2021 wash-up and the ORS funding adjustment may result in an over-funded position for 2021. We will look to spread the wash-up and ORS adjustment across the remaining three quarters for 2022 funding to reduce the financial impact for schools and kura affected.
There will be some schools and kura who will not receive funding on 1 April 2022 due to previous settlement funding either being overestimated or because their instalment was calculated as less than $50.
The Ministry will continue to provide settlement funding to schools for the Teacher Aide Pay Equity and Support Staff in Schools settlement agreements until a review of the funding model is completed.
You can find information on how increments will be funded here.(external link) Increment funding will be provided as part of the April wash-up funding each year as we require a full year of payroll data to complete the calculation.
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