The Premier, Lara Giddings, today welcomed the AEU's acceptance of the teachers' agreement which will put in place a salary increase of two per cent per annum over two years.

"I welcome the AEU announcement that they will accept the Government's public sector wage increase of two per cent per annum over two years.

"This is a responsible increase for teachers in this current economic climate, and in line with this agreement we will continue to work with the AEU on any issues they have."

Ms Giddings said the acceptance of the agreement highlighted the responsible approach being taken by unions and public sector employees during wage agreement negotiations.

"This agreement follows on from the agreement with public sector unions on a new Tasmanian State Service Agreement earlier in the year and means that a significant proportion of the Tasmanian public service has now agreed to responsible wage increases in line with the State Government's wages policy.

"And just a few weeks ago the Parliament of Tasmania also agreed to limit pay rises for politicians to two per cent per annum for the next two years.

"I commend the responsible approach taken by unions and their members.

"Wage restraint is helping to minimise the need for job losses and service cuts as we work to respond to a $1.8 billion decline in GST and state-own revenue."