Newly qualified teachers are to receive pay rises worth up to €2,000 under a deal done between the Department of Education, the Teachers' Union of Ireland and the Irish National Teachers' Organisation.
However, new recruits who belong to the Association of Secondary Teachers of Ireland will not receive the pay boost, because their union has rejected the Lansdowne Road Agreement.
The move will address the controversial two-tier pay scale which developed for newly qualified teachers hired after February 2012, who saw their basic pay reduced by 10%, and who also lost an entitlement to qualification allowances worth up to €5,000 a year.
Over a teacher's career, the department estimates that the value of the increases will be €135,000.
Union sources reckoned that between 31 August 2016 and January 2018, the deal would equate to a pay increase for affected teachers worth around 15%.
The deal is contingent on the introduction of certain reform understood to centre on a review of school structures and posts of responsibility, including removing seniority as a standalone criterion for selection.
President of the Teacher's Union of Ireland has said the new deal is part of the process, but "there is still more to get for members".
Speaking on RTÉ's Six One Joanne Irwin said the 15% increase for newly qualified teachers is seen as "an incremental delivery back to pay parity".
Also speaking on RTÉ's Six One General Secretary of the ASTI Kieran Christie described the agreement as a significant step in addressing the issue of pay, but added that the ASTI is in the separate talks process with government.
Mr Christie said that the union is campaigning for a full restoration of equal pay for equal work.
He defended the ASTI's approach, saying its different to achieving what are similar ends.
The ASTI is currently balloting for industrial action on a number of issues - including a proposal to cease doing supervision and substitution duties.
If they do so, there are fears that schools would have to close for health and safety reasons.
ASTI President Ed Byrne said in a statement: "We will continue to pursue a resolution through talks. We want equal pay for equal work. However, we reiterate that ASTI members have rejected the Lansdowne Road Agreement for a number of reasons, including its failure to deliver pay equalisation for new teachers."
Minister for Education Richard Bruton met the two unions yesterday.
It came after a series of meetings since July between the Department of Education and Skills, the Department of Public Expenditure and Reform, and TUI and INTO representatives.
Teachers in unions who accepted the LRA are also in line for the restoration of supervision and substitution payments worth almost €800 from 13 October - which the ASTI will not receive.
INTO and TUI reach agreement with the Dept of Education on pay for newly-qualified teachers recruited since Feb 2012 pic.twitter.com/gJ9tAYhfHJ— RTÉ News (@rtenews) September 16, 2016
Minister for Public Expenditure and Reform Paschal Donohoe said the implementation of the revised salary arrangement will be implemented in two phases - on 1 January 2017 and 1 January 2018.
He added: "The effect of this will be to assimilate all post-1 January 2011 and post-1 February 2012 new entrants to teaching onto a single new salary scale which will incorporate the honours primary degree allowance."
Mr Bruton said the deal "is great news for new teachers" and shows "what is possible through dialogue and negotiation within the Lansdowne Road Agreement".
The INTO said the deal "equalises pay between teachers who started from February 2012 and those who started immediately before them in 2011".