Key Takeaways
- The Victorian teachers’ union (AEU) has reached an in‑principle agreement worth $4.6 billion with the Allan government, proposing pay rises of up to 32.4 % over four years.
- The deal would lift an experienced teacher’s salary from $118,063 in 2025 to $151,419 by 2029, moving Victoria’s teachers from the lowest‑paid public‑education workforce in Australia to competitive, and eventually top‑ranked, levels interstate.
- Salary increases are tiered: the 32.4 % boost applies to the lowest pay band, tapering to 28.3 % for teachers at the top of the scale.
- In addition to wages, the agreement grants three extra student‑free days per year (raising the total from five to eight), though it does not include the reduced face‑to‑face teaching time sought in the original log of claims.
- The AEU also endorsed a parallel offer to raise early‑childhood educators’ pay by an average 39.1 % over four years, aiming for pay parity with school teachers.
- Union leadership will now put the proposal to a ballot of its 60,000 members; a series of half‑day strikes planned for May‑June remain on hold pending the vote.
- Some rank‑and‑file teachers remain dissatisfied, arguing that the offered increase falls short of the original 35 % demand over three years and questioning the arithmetic of the proposal.
- The government frames the deal as a step toward fully funding Victoria’s schools to the Schooling Resource Standard, noting current funding sits 9‑10 % below that benchmark.
Background and Negotiation Context
Negotiations between the Australian Education Union’s Victorian branch and the Allan government began in July 2025, following a wave of industrial action that saw roughly 35,000 teachers, principals and education support workers walk out in March. The union’s log of claims had called for a 35 % pay increase over three years, alongside reductions in face‑to‑face teaching time and additional student‑free days. The government’s initial offer stood at 18.5 %, reflecting budgetary constraints and a desire to avoid prolonged disruption. Over months of bargaining, both sides moved toward a middle ground, with the union conceding on the timeline and the government increasing its offer. The resulting in‑principle deal, announced on May 15, 2026, is described by officials as one of the quicker education agreements reached in recent years, characterised as a cooperative effort rather than a protracted standoff.
Details of the Pay Rise Offer
The core of the agreement provides for salary increases averaging 32.4 % over a four‑year period, with the total cost to the state estimated at $4.6 billion. The increase is not uniform across the pay scale: teachers at the bottom of the salary ladder would receive the full 32.4 % rise, while those in higher bands would see a slightly lower boost of 28.3 %. This tiered approach acknowledges the union’s goal of lifting the lowest‑paid educators while still providing meaningful gains for more senior staff. For an experienced teacher currently earning $118,063, the projected salary by October 2029 would be $151,419—an absolute increase of more than $33,000 over the life of the contract.
Impact on Teacher Salaries and Interstate Competitiveness
Presently, Victorian public‑school teachers are the lowest‑paid public education workforce in Australia. The agreement aims to rectify that disparity by moving Victoria’s teachers toward the top of the national pay ladder. Union president Justin Mullaly highlighted that a teacher at the top of the scale would, by October 2029, surpass the earnings of a comparable New South Wales colleague, translating to an approximate $15,000 advantage. The government, led by Premier Jacinta Allan, echoed this sentiment, asserting that the deal would make Victoria’s teachers “the best paid in the country.” The anticipated boost is expected to improve recruitment and retention, addressing longstanding concerns about staff shortages in certain regions and subject areas.
Additional Provisions: Student‑Free Days
Beyond base pay, the deal includes an extra three student‑free days per year, raising the total from the existing five to eight days annually. These days are intended to provide teachers with additional time for planning, professional development, and administrative tasks without encroaching on instructional time. Notably, the agreement does not incorporate the reduction in face‑to‑face teaching hours that was part of the original union demand. The government opted to retain current teaching loads while offering the additional non‑instructional days as a compromise, arguing that the extra preparation time will indirectly benefit student outcomes.
Comparison with Interstate Pay and Union Claims
Although the offered increase falls short of the union’s original 35 % over three years, the government points out that spreading the rise over four years still yields a substantial cumulative gain. Critics within the rank‑and‑file, such as Footscray Primary School teacher Caitlin Wood, have questioned the arithmetic, arguing that “35 over four years does not add up to 28 over three,” suggesting the proposal does not meet the perceived value of the initial claim. Nonetheless, union leadership maintains that the agreement satisfies the core objective of lifting wages from the bottom of the national pile toward competitiveness, and they will urge members to view the offer as a fair and achievable outcome.
Government Funding Perspective and Gonski Commitments
Education Minister Ben Carroll framed the $4.6 billion expenditure as an investment that aligns with Victoria’s broader goal of fully funding public schools to the Schooling Resource Standard (SRS) established by the 2012 Gonski review. Currently, Victoria’s schools operate at 9‑10 % below the SRS minimum. The minister noted that the spending on teacher salaries counts toward the state’s share of any future Commonwealth‑state agreement aimed at reaching full SRS funding. Carroll also highlighted parallel investments in school infrastructure, referencing Victoria’s role in constructing one in two of the new schools built nationwide, as part of a “massive reform agenda” intended to modernise learning environments.
Early Childhood Educators Deal
In tandem with the teachers’ agreement, the AEU endorsed a separate offer to raise the pay of early‑childhood educators by an average 39.1 % over four years. This measure seeks to bring kindergarten teachers, predominantly employed within the state system, to pay parity with their school‑teaching colleagues. The union views this as a critical step in recognising the value of early‑learning professionals and addressing wage gaps that have historically persisted across the education sector.
Union Internal Reaction and Ballot Outlook
Following the endorsement by the Victorian Branch Council, union leadership has shifted focus to securing member approval via a statewide ballot. While some delegates began mobilising for a “no” vote even as Justin Mullaly addressed journalists, the leadership remains optimistic that the proposal will be accepted. The planned half‑day strikes set for May and June 2026 are currently on hold, contingent on the ballot outcome. Union officials argue that the deal offers a realistic pathway to improved wages and conditions without prolonging industrial action, and they will campaign vigorously to convince members that the agreement fulfills the core demands raised during the March protests.
Conclusion and Implications
The tentative $4.6 billion pay deal represents a significant development in Victoria’s education landscape, promising substantial salary gains, additional planning time, and a step toward equitable funding for public schools. If ratified, the agreement could elevate Victorian teachers from the nation’s lowest‑paid to among the highest‑paid, potentially stabilising the workforce and enhancing educational quality. Simultaneously, the parallel rise for early‑childhood educators underscores a broader commitment to uplifting the entire education sector. The forthcoming ballot will determine whether the union’s rank‑and‑file view the compromise as a satisfactory resolution or whether further negotiations—or action—will be required to meet their original aspirations. Regardless of the outcome, the discussions underscore the ongoing tension between fiscal constraints and the demand for competitive compensation in public education.