The Anchorage School District says it had reached a tentative agreement with the Anchorage Education Association on a three-year labor contract through June 2016.
The old contract expired June 30.
Teachers would receive a $1,500 bonus in years one and three.
The proposal includes a 1 percent pay increase each year plus step increases for longevity or additional education.
However, teachers on a "plan for improvement" would not be eligible for step movements or increases for educational attainment.
The district will pay health insurance costs of $1,400 per month during the first year of the contract and $1,500 per month in the second and third years.
Personal leave will increase from 2.5 to three days per school year.