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This week we’re sharing insights from our survey about EdPay’s new annualisations screen, information about the latest collective agreement changes and a reminder about tailored tax codes.
Secondary Principals Collective Agreement (SPCA) 2025 changes
This collective agreement (CA) includes increases in pay rates and allowances, two new allowances and changes to medical retirement.
Key dates
- The new collective agreement is effective from 5 December 2025.
- Payslips from 17 March 2026 (pay day PP26) will show backdated pay from 5 December 2025 that includes the new pay rates and allowances.
- The corresponding Individual Employment Agreement (IEA) was promulgated on 15 December 2025.
Increases to U-Grade salary rates
U-Grade salary rates increase from 5 December 2025, and will increase again from 5 December 2027.
For the rates table, see part 3 of the SPCA.
New allowances
NCEA change implementation allowance
This allowance applies to principals on the CA or IEA who are not excluded in clause 4.4.3. It will be paid in five instalments of $3,000 in December and July from 23 December 2025 to 21 December 2027.
Principal mentor allowance
This allowance is $5,000 per annum and will be available from the start of term two 2026.
If the principal at your school is selected as a mentor, please use the Allowance changes for teachers and principals (EP16t) form to add this allowance.
Increases to allowances
The agreement includes increases to three allowances.
Principals career structure payment
This allowance increases by $1,500 for beginning, experienced and leading principals, effective 28 January 2026.
Leadership in realising youth potential
This allowance increases for all U-Grades by $1,000 from 28 January 2026, then by another $500 from 28 January 2027.
Māori Immersion Teaching Allowance (MITA)
The new rates for MITA are effective from 5 December 2025. The rates are based on length of service and language level.
For more information about the increases to these allowances, see parts 3 and 4 of the SPCA.
Medical retirement
From 5 December 2025, medical retirement will be approved by the Ministry. Principals can choose between a lump-sum sick leave payment or three months’ salary payment. There is no change to the calculation of medical retirement, and the process is the same as it is for teachers.
For more information, see part 7 of the SPCA.
Individual employment agreement (IEA)
The corresponding Secondary Principals’ IEA was promulgated on 19 December 2025. If your school’s principal has signed this IEA, please complete an Individual Employment Agreement (IEA) change (EP22) form, as this IEA will not be available in EdPay’s IEA change screen.
Payroll calendar: 27 pay periods this year
You may have noticed on our website’s payroll calendar that there’s a PP27 this year.
The pay cycle needs an extra pay period every 11 years or so, to reset where pay periods fall across the year – like the extra day in a leap year.
Adding PP27 this year (18 – 31 March) means that PP01 starts on 01 April, the first day of the new tax year.
Preparing for the next financial year – tailored tax codes
If an employee provides you with a tailored tax certificate from Inland Revenue, please update their tax code in EdPay to STC (Special tax code) before 06 April 2026, the forms cut-off for PP01. This will make sure the employee starts the new tax year with the correct tax deductions from their pay.
To change an employee’s tax code in EdPay:
- Select the employee.
- Click on Financial details.
- Scroll down to Other financial details and click on the pencil icon.
- Click on the + symbol next to the tax code, then select the new tax code: STC.
- Select SEND. Please ignore the start and end date that displays when you click save – your payroll advisor will update it.
When you change the code to STC, we’ll email you to ask for a copy of the tailored tax certificate by return email.
For more information about tailored tax, please see Employees with tailored tax codes on Inland Revenue’s website.
Annualisations - survey results
We introduced EdPay’s new annualisations screen and the updated Annualisation agreement (EP23nt) form in October last year. The survey we conducted afterwards shows these were a resounding success.
95% of survey respondents rated the annualisations screen as easy or very easy to use.
You submitted 4,013 annualisations using the EP23nt form and 9,739 using the EdPay screen.
The ‘right first time’ measure improved significantly: from 73% to 92%! This means that last year 27% of annualisation forms needed a follow-up (more information or corrections) before they could be processed, but this year that was down to 8%!
Thank you for adapting to the new screen and using it so successfully. If you have any more feedback, or suggestions to improve the annualisations screen or form, please respond to our Start of Year survey which will be open from 27 February to 13 March on the News and Updates page in EdPay.
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Education Payroll