Cost to schools of approving leave and hiring day relief

NZPPTA and NZSTA guidance on employing day relievers

The rates on this page apply as at June 2019. These rates will change and be updated but the general patterns illustrated will be consistent over time.

Secondary schools receive some of their operational funding to assist with relief for teacher absences of up to eight days

  • most secondary schools receive $ $2,657.39 per FTTE 
  • maximum relievers’ daily rate is $318.42 (including holiday pay)

This means that Ministry of Education funding covers at least 8.35 days of relief per FTTE ($2657.39/$318.42). Schools are expected to ensure there is sufficient funding in the relief budget to cover actual needs.


Schools may either pay for a day reliever from their operational funding or to the Teachers’ Salaries (TS) i.e. against their staffing entitlement.


When the school pays from the operations grant the school will pay the actual cost of the day relief. Actual costs are the salary costs of the day reliever, which will depend upon the step they are being paid on and the number of hours they are employed to relieve.
When a school charges the relief to their staffing entitlement the school keeps the operational funding and the ministry pays the actual cost of the reliever and deducts from the school’s staffing entitlement an FTTE proportion.


The indirect financial cost to the school of the deduction of the staffing entitlement is either:

  • The cost of the FTTE deducted if the school is in deficit in its banked staffing at the end of the year (at the annualised rate of $82,225) or
  • The loss of some cash-up cost of the FTTE deducted if the school is credit in its banked staffing at the end of the year (at the annualised rate of $62,250)


Relievers may cover for teachers on leave with or without pay, which need to be taken into account.

Flow chart for salary costs associated with employing a reliever for a day at step 6

Day relief pay flowchart3

The following scenarios provide examples for one day teacher relief:

Scenario 1 - paying reliever from ops grant for a teacher on leave without pay

The school pays for a reliever from the operations grant for a teacher on leave without pay (LWOP). The school will pay $318.42 from operational funding and save on its staffing entitlement. The net cost of the day relief is either $93.24 or $147.94.

When a full time teacher is away on leave without pay from school for one day the school is charged 0.929 FTTE (1FTTE*13/14) against its TS entitlement for that fortnight.

The saving to the school’s TS entitlement for a teacher on LWOP for one day in a fortnight is 1/14 = 0.0714 FTTE, which becomes a cash saving to the school if:

  • The school finishes its staff banking year in deficit and reimburses the Ministry for its staffing overuse. At $82,225 per FTTE the net saving is $225.18. In this case, the school pays the $318.42 from its operational funding but saves $225.18 on its staffing deficit - so the net cost of the day relief is $93.24.

Or 

  • The school finishes its banking year in surplus and is reimbursed by the Ministry for its staffing underuse. At $62,250 per FTTE the gain to the school is $170.48.In this case, the school pays the $318.42 from its operational funding less the $170.48 reimbursed for the staffing saved, so the net cost of the day relief is $147.94.

 Scenario 2 - paying reliever from ops grant for a teacher on leave with pay

 

The school pays from the operations grant for reliever for a teacher on leave with pay. There is no saving to the TS entitlement. The net cost to the school is the $318.42 from operational funding.

When a full time teacher is away on leave with pay from school for one day the school is charged 1 FTTE against its TS entitlement for that fortnight, as they would be if they were present.

Scenario 3 - charging relief to staffing entitlement for a teacher on leave without pay

When a full-time teacher is away on leave without pay from school for one day the school is charged 0.929 FTTE (1FTTE*13/14) against its TS entitlement for that fortnight.

The saving to the TS entitlement for a teacher on LWOP for one day in a fortnight is 1/14 = 0.0714 FTTE

If a short term reliever is charged against the school's staffing entitlement for one day in a fortnight the school is charged 0.1368 FTTE
The FTTE cost to the school is the difference between the saving on the absent teacher and the charge to the entitlement for the relieving teaching i.e. 0.1368-0.0714 =0.0654 FTTE, which becomes a cost to the school if:

  • The school finishes its staff banking year in deficit and reimburses the Ministry for its staffing overuse. At $82,225 per FTTE the net cost is $206.26

or

  • The school finishes its banking year in surplus and is reimbursed by the Ministry of Education for its staffing underuse. At $62,250 per FTTE the cost to the school of not receiving the reimbursement on that part of its staffing entitlement is $156.15.

In either case, the school retains the $318.42 operational funding provided by the ministry.

Scenario 4 - charging relief from staffing entitlement for a teacher on leave with pay

The school charges the reliever against TS for a teacher on leave with pay. The banked staffing cost to the school will be $431.58 or $326.63. The school will retain the $318.42 operational funding.

When a full-time teacher is away on leave with pay for one day there is no saving to the TS entitlement.

If a short-term reliever is charged against the schools staffing entitlement for one day in a fortnight the school is charged 0.1368 FTTE

The school is charged for the additional FTTE against its TS line for the relieving teacher.

The 0.1368 FTTE for that fortnight becomes a true cost to the school under when:

  • the school finished its banking year in deficit and has to reimburse the Ministry for its staffing overuse. The reimbursement rate is $82,225 per FTTE or an actual cost of $431.58. 

Or

  • the school finished its banking year in surplus and has to be reimbursed by the Ministry for its staffing underuse. With the repayment rate at $62,250 per FTTE the net cost to the school of not receiving the reimbursement on that part of its staffing entitlement is $326.63.

In either case, the school retains the $318.42 operational funding provided by the ministry to offset this cost.

Last modified on Wednesday, 18 December 2019 16:33