Secondary school teachers appointed since February 2012 are to see the value of a previously withdrawn allowance restored.
The Department of Education said the restoration will be implemented by increasing the new entrant salary scale for post-primary teachers to include the value of the Honours H.Dip in Education Allowance, which is worth €1,314, on each point of the scale.
The increase will be backdated to 1 February, 2022.
The allowance had been withdrawn from newly appointed teachers following the outcome of a public service wide review of allowances and premium payments in 2013.
The restoration of the allowance was funded using the 'sectoral bargaining fund' of the public sector pay agreement 'Building Momentum'.
Members of the Association of Secondary Teachers in Ireland (ASTI) and the Teacher's Union of Ireland (TUI) chose to forego a 1% pay increase in February in order to fund the restoration of the allowance.
"The current national pay agreement Building Momentum allowed for unions to have a say on how best to use the sectoral bargaining fund in terms of their members’ priorities," said Minister for Education Norma Foley.
"The outcome today to use that fund to resolve a long-standing policy objective of the unions indicates the success and potential of the process," she added.
The ASTI and TUI have welcomed confirmation of the payment which they described as "overdue".
The two unions had publicly demanded a resolution of the issue and had criticised delays in restoring the allowance at a time when teachers are trying to deal with the rising cost of living.
"It brings equal pay a step closer for this cohort of teachers who have suffered this injustice for almost a decade," said ASTI President Miriam Duggan.
"Given the cost-of-living crisis, focus must now turn to providing teachers with secure jobs of full hours in order make teaching a viable and sustainable career," said TUI President Liz Farrell.