A pay deal has been signed between the union representing primary and intermediate teachers and the Government to introduce an allowance for 800 expert teachers worth $4 million, the start of performance pay.
Principals will endorse teachers who meet a set of criteria judged against the New Zealand curriculum and they will be assessed by a panel of people who are yet to be decided.
The union, New Zealand Education Institute, say they took the idea of an allowance to reward experienced teaching staff to the Education Ministry in its pay negotiation round, asking for as many allowances as possible.
It's Primary Teachers Collective Agreement was fully ratified with the ministry on June 7, after long negotiations.
The "advanced classroom expertise teacher allowance" was agreed to by the ministry, but was capped by the ministry at 800 eligible teachers.
By 2015, 800 teachers across 2000 primary and intermediate schools will be paid an allowance of $5000 a year - worth $4 million.
The allowances will be contestable - if a teacher stops meeting the criteria or leaves the school it will stop.
The union would ask for more allowance in the next pay negotiations.
NZEI's president Judith Nowotarski confirmed the new bonus scheme was the idea of the union and she could see how it looked like that start of performance pay in the education sector in New Zealand.
"It's difficult because there's a number on it.
"I think it could look like performance pay if you don't take into consideration the development behind it and its intent.
"On paper possibly it looks like that [performance pay]"
She also confirmed new and entry-level teachers could take a cut - receiving lower pay scale increases.
"In negotiations compromises have to occur."
Teachers on the primary and intermediate entry-level pay rates (scales 1 - 7) received on average a 1.2 per cent pay increase in the latest settlement.
Mrs Nowotarski said the type of teachers eligible for the allowance would be on scale 8 of the collective agreement, earning $57,306 and be experts in the classroom.
Teachers on the highest steps could apply for a $5000 allowance and in addition would get up to a 3 per cent pay increase.
Mrs Nowotarski said most primary and intermediate teachers were on the higher levels of the collective agreement pay scale.
She believed the union would not lose members over the perceived introduction of performance pay.
She said the union entered a long-term work programme with the ministry to work on improving career pathways for teachers in 2004.
A staff member at NZEI said its members would not see it as performance pay because teachers' achievement wouldn't be based on raw National Standards data.
The union could provide no evidence the limited number of allowances wouldn't result in teachers competing for the allowances.
An entry level teacher who did not wish to be named said the allowances were designed to keep people in the profession.
"Young and new teachers could be put off entering the profession after lower pay increases when you start teaching."
A spokeswoman for the ministry said it was pleased with the introduction of the advanced classroom expertise teacher allowance.
"There is no work on performance pay being undertaken by the ministry," she said.
The ministry would not comment on whether the payments were akin to performance pay.
Education Minister Hekia Parata was unavailable for comment as she was flying back from an educational summit in Santiago, Chile.
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Primary and Intermediate pay scales and negotiated increases:
1 - $35,267 - 1.2 per cent
2 - $37,979 - 1.2 per cent
3 - $42,046 - 1.2 per cent
4 - $46,117 - 1.2 per cent
5 - $47, 662 - 1.61 per cent
6 - $49, 508 -1.2 per cent
7 - $52,220 -1.2 per cent
8 - $57,306 -3.03 per cent
9 - $61,447 -3.03 per cent
10 -$65,788 -1 per cent
11 - $69,099 -2.5 per cent
12 - $73,000 - 3 per cent