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High school teachers will get a pay bump of around 14.5 percent, after the government agreed to an arbitration panel's recommendation.
The decision ends months of pay disputes between the government and secondary teachers' union.
Beginner teachers will go from around $51,000 to $61,000.
A teacher at the top end of the scale will have their pay increased from $90,000, to $103,000 It will cost the government another $680 million to the $3.76 billion set aside for settling teacher and principal pay agreements.
The Education Minister Jan Tinetti spoke to Lisa Owen.