Teachers in the Northern Territory are set to become the highest paid in Australia.

The new pay deal negotiated between government and the Australian Education Union NT will see wages rise by 12.9 per cent over three years.

Education minister Jo Hersey said the agreement – supported by more than 90 per cent of teachers – would enable the state’s schools to recruit more teachers.

“The territory must be competitive if we are going to attract and retain excellent teachers and this deal delivers the country’s best pay deal.”

According to the AEU NT, graduate salaries will be $7,000 above NSW, $13k above Victoria, and $20k above SA. NT Teachers at the highest level – CT9 – will exceed their NSW counterparts by $9k, Victoria by $14k, and SA by $26k.

The deal was struck to address the territory’s chronic workforce shortage. In an online post to members, AEU NT branch president Michelle Ayres said: “By focusing on salaries now, we aim to bring more teachers into the system.”

The deal also includes an increase to the financial incentive to attract teachers to Katherine and Alice Springs, now worth $4,500 a year.

As well, class sizes will be reduced from 27 students to an average of 25 in years 11 and 12. “Reducing class sizes will have a direct impact on reducing workloads, improving classroom management, and enhancing the quality of education we provide,” Ayres said.

“This agreement is a long-term win for all of us,” she added. “Higher teacher salaries mean more teachers next year, and that’s a key step forward reducing workloads and creating a better working environment.”

The Commissioner for Public Employment will now lodge the agreement with independent workplace relations tribunal the Fair Work Commission for approval.