Merit-based pay for teachers improves student performance and retains good teachers, school leaders say.
In several states and hundreds of local school districts, traditional teacher salary structures based on years of service are being replaced by merit and pay-for-performance models.
The success of the Dallas Independent School District’s ACE (Accelerating Campus Excellence) program, implemented in 2016 and credited with improvements in math and reading scores, prompted many districts and state education departments to revise teacher pay due to stagnant or declining academic achievement and high teacher turnover, according to state officials.
The Houston Independent School District, which the state took over due to poor student performance, will begin rating and paying teachers based on their effectiveness, not years of service, in the 2026-2027 academic year, district officials told The Epoch Times. It will be the largest school district in the nation to do this.
Houston teacher salaries will range from $64,000 to $101,000, and those with unsatisfactory ratings can be fired. The annual evaluation process also authorizes the district to reduce pay if a teacher’s performance diminishes from year to year, according to guidelines released last year.
The purpose of this change is aimed not only at improving student outcomes but also at recruiting and retaining good teachers, leveraging state grants, and driving equity across campuses, according to the guidelines.
“It’s a very strong strategy,” Heather Peske, president of the National Council on Teacher Quality, told The Epoch Times, adding that her research determined that bonuses above $5,000 are usually effective.
Texas-Sized Idea Catches On
The Dallas school district’s teacher and principal evaluation and compensation system is based on student achievement metrics, such as test scores, as well as student survey responses.
A 2025 analysis of the program by the Hoover Institution at Stanford University noted that, in addition to improved academic performance compared to other large urban school districts in Texas, teacher turnover decreased and was concentrated mainly among those who received low ratings.
“While such sweeping changes may appear blunt from a distance, a close look at the Dallas reforms shows they were carefully planned to guard against evaluation inflation, the arbitrary treatment of teachers, and strategic responses such as teaching to the test,” the report said.
