More than 40,000 teachers in Papua New Guinea are to receive an increase to their pay and allowances of 16 percent.
The Post Courier reports the increase will cost the government 117 million US dollars and will be implemented progressively from this year until 2013.
Salaries will be raised along with housing and hardship allowances which compensate teachers for working in remote areas.
The agreement covers 46,000 teachers from elementary to secondary schools.
They should see a difference in their wages as early as next month after the PNG Teachers Association signed the agreement with the Department of Personnel Management.
Many teachers in the Highlands have resigned from their teaching positions to work for the PNG LNG project.