Schools Should Overhaul Teacher Pay, Report Says

Persistent shortages for critical teaching positions will remain until states and school districts change pay structures and degree requirements, a new report from the nonprofit National Council on Teacher Quality says.

Released on Sept. 29, the report, “State of the States: Spending Smarter on Teacher Pay,” says 32 states don’t offer higher pay rates for hard-to-staff schools and subjects, including special education, math, and science, and only 10 states require pay-for-performance measures that reward the most effective teachers.

In 41 states, automatic teacher salary increases are based on seniority and “credentials that research shows do little to improve student outcomes,” mainly master’s degrees.

Salary and benefits make up about 80 percent of a school district’s spending. California spent $27.7 billion on teacher salaries in the 2024–2025 academic year, according to the report.

The council will share its findings with state legislators, policy centers, school district leaders and teacher unions ahead of upcoming budget planning sessions or contract negotiations, said Heather Peske, the council’s president.

“Paying more for hard-to-fill positions and rewarding top performers is a no-brainer in most professions,” she said in a news release. “Teaching should be no different, especially when budgets are tightening. States cannot easily spend more to build a stronger teacher workforce, but they can spend smarter by directing their dollars toward effective teachers and the schools and subjects where they’re needed most.”

In large, low-income school districts that primarily serve minority students, teacher turnover rates are 37 percent higher than in other types of schools. It costs about $25,000 to replace a teacher in larger districts, considering the administrative, training, and educator coaching requirements, Peske told The Epoch Times.

Peske’s organization, which is staffed by education industry experts in both K-12 and higher education, has extensively reviewed and rated teacher training programs at the undergraduate and graduate levels. They found that teachers with master’s degrees are no more effective than teachers with undergraduate degrees, and nearly 40 percent of teachers are still repaying student loans.

And yet, many districts still pay teachers with a master’s at a higher rate and/or require teachers to earn the advanced degree within a certain amount of time or face termination. Money would be better spent rewarding the most effective teachers, Peske said, adding that a pay-for-performance program in Texas has led to measurable student achievement gains “equivalent to roughly a third of a year of additional learning” and decreased educator turnover.

Teacher unions oppose merit pay. The National Education Association’s 2025 handbook states that any system of compensation “based on an evaluation of an education employee’s performance” is inappropriate.

The American Federation of Teachers has passed dozens of resolutions opposing merit-based pay dating back decades, according to its website.

Most teacher union contracts, which are public records found on school district websites, list salary steps for teachers based on years of service. Some provide additional pay for added duties like coaching or club advisement, but individual performance reviews with pay raises determined by management are virtually nonexistent.

Unions emphasize solidarity in the collective bargaining process, which they say is inconsistent with wage differences based on performance.

Still, Peske said that in this era of teacher shortages, declining enrollment, and budget constraints, merit-based pay should be a topic of conversation between districts and unions, and states should consider grants to help schools offer pay-for-performance arrangements.

“As a district, you have to work to get the best bang for your buck,” she said.

For subjects in the highest demand, Peske recommends that districts guarantee teachers a 7.5 percent salary supplement. Prior research determined that $5,000 is the threshold for motivating teachers, she said.

The National Council on Teacher Quality’s website lists teacher pay amounts in 133 districts across the nation.

Cumberland County in North Carolina showed the lowest starting pay on that list last year at $43,800. Boston Public Schools in Massachusetts was the highest-paying overall, with a $159,500 maximum salary figure for a teacher with several years of experience.

In 2013, North Carolina became the first state to eliminate the master’s requirement, though teachers with the advanced degree continued to receive a 10 percent salary premium.

Teacher unions and legislators have called for reinstating the requirement, but the Tarheel State has “generally held the line,” the report said. Dropping the requirement has freed up money for the Advanced Teaching Roles initiative, which rewards highly effective teachers who take on additional leadership responsibilities or head larger classrooms.

The state’s largest district, Charlotte-Mecklenburg, has reported significant academic gains under this program.

“Spending smarter on North Carolina’s experienced teachers is paying off for teachers and students,” the report said.