A teachers' union says a new allowance will help to keep good teachers in the classroom rather than going into management.
The Advanced Classroom Expertise allowance of $5000 a year will go to up to 800 teachers who demonstrate innovation based on research.
New Zealand Educational Institute (NZEI) vice president Frances Guy says the allowance is allocated based on a robust assessment of a teacher's skills and expertise, rather than the results of their students.
Ms Guy says teachers who apply will go through a year long process to be awarded the payment and an assessment every third year to maintain it.
She says teacher examinations will begin next year and the allowance will be paid out from 2015.