NZ Approves New Pay Deal for Area School Principals to Support Rural Education

Minister Stanford emphasised that area school principals are central to the educational, cultural, and social foundations of regional communities.

Education Minister Erica Stanford has announced the successful conclusion of negotiations to renew the Area School Principals’ Collective Agreement, delivering notable pay increases and new allowances for more than 140 principals nationwide. The settlement represents a continued commitment to supporting leaders who play a vital role in New Zealand’s rural and semi-rural school communities.

Recognising the Work of Rural School Leaders

Minister Stanford emphasised that area school principals are central to the educational, cultural, and social foundations of regional communities.

“Area schools principals play an integral role in our rural communities. This settlement delivers meaningful improvements to pay and conditions and reflects a firm commitment to strengthening professional learning and development and raising student achievement,” she said.

Area schools accommodate students from Years 1 to 13, requiring principals to manage complex learning environments and provide leadership across both primary and secondary education streams.

Key Features of the New Collective Agreement

The renewed agreement delivers a range of financial and professional incentives designed to better recognise principals’ workloads and responsibilities:

• 4.7% cumulative increase to the U-grade remuneration component within 12 months

• New NCEA Change Implementation Allowance of $6,000 per year, supporting principals as they lead the nationwide updates to NCEA

• $1,500 increase to the Area School Principal Payment, phased over two years

• $1,500 increase to Career Structure payments

• $5,000 annual allowance for principals appointed as professional mentors to new or emerging leaders

These measures aim to strengthen retention, attract high-quality leadership, and better support principals managing increasing administrative and curriculum demands.

Commitment to Collaboration and Student Achievement

Minister Stanford said the settlement reflects productive negotiations and good-faith bargaining between the Government and the sector.

“We back our teachers to succeed in the classroom and help build our country’s future,” she added, noting that improved leadership conditions contribute directly to better educational outcomes for students.

The updated agreement underscores the Government’s commitment to supporting professional development, easing workload pressures, and ensuring rural schools remain well-resourced to meet the diverse needs of their communities.