Labour will fund an extra 2000 teachers under its policy to reduce primary class sizes to 26 students by 2016 and secondary schools to an average of 23 by 2018 - a step expected to cost $350 million over the next three years.
Labour leader David Cunliffe has announced the policy at Labour's Congress alongside a suite of associated education policies.
It will pay by scrapping National's $359 million 'Investing in Educational Success' scheme, under which the best teachers and principals are paid more and used to help work with other teachers and schools.
Labour's proposals include:
* reduce primary school class size ratios to 1:26 from 1:29 by 2016
* reduce secondary school average class sizes to 23 by 2018
* raise the standard of entry into teaching courses
* new 'school advisory service' to identify and make use of good teachers, including seconding good teachers to other schools for up to 3 years.
* set minimum standards for those wanting to be principals
* new classrooms and equipment for the 2000 teachers, $104 million.
Mr Cunliffe said National's proposal to reward teachers was unworkable and had divided the sector.