Education Minister Andrew Holness had said that Government would not be able to pay teachers the full amount of retroactive funds due to them.
Teachers are owed nearly $12 billion in retroactive money but Holness said that Government would not be able to pay $7 billion of that figure.
Government had agreed to increase teachers' salaries to 80 per cent of market.
The State also agreed, by way of a memorandum of understanding, to give teachers a 15 per cent increase.
Already, Government has taken the decision to freeze the salaries of public-sector workers, which means that the seven per cent increase teachers were due will not be paid.
Some teachers had threatened to strike if Government was not convincing.