Gilroy Unified School District has reached a new contract with its teachers after negotiations finished late Tuesday.

The new deal follows months of negotiations which began with initial bargaining sessions in December between the district and the Gilroy Teachers Association. The agreement includes a 2.5% salary increase, which would be retroactive to July 2024. Additionally, the district would cover increased costs of health benefits. Among other changes, the deal also establishes a team that would provide assistance for special education teachers with the unique plans they prepare for their students, and offers those teachers increased stipends.

“We’re thrilled to have reached a tentative agreement — one that is fair for our employees … one that will not put the district in financial peril,” said Melanie Corona, public information officer for the Gilroy Unified School District, noting that the district and superintendent “wanted to make sure that the teachers all felt valued for the impact they make for our kids.”

In a statement, Gilroy Teachers Association president Caitlin Madolora, said the union was “pleased to have reached a tentative agreement with (the district) that we believe will make a positive impact in the classroom, increase supports for students, and respect the work of our educators.” She also added, “We appreciate management’s engagement in listening to the needs of our unit members and working with us to reach an agreement that addresses the needs of Gilroy students and educators.”

In order to be finalized, the deal will need approval by the teacher’s union at a meeting on April 22 and the district Board of Education at a May 8 meeting. If approved, the contract would be set to expire in June of 2026.