When the new school year begins, city teachers who survive the layoff process will be getting 2.5-percent pay raises.

That’s because the teachers are about to enter the final year of a four-year contract, which provides for cost-of-living and “step” increases. The contract also increases teachers’ contributions to their health benefits by a half-percent as of July 1.

A 2.5-percent cost-of-living adjustment (COLA) will kick in when school starts.

And it will remain regardless of the outcome of ongoing negotiations between school district unions and Mayor Ted Gatsas, aimed at preventing 161 layoffs in the district for the next school year.

Manchester Education Association, the city teachers’ union, last month rejected by a 3-to-1 ratio a concessions plan that Gatsas has said would save 143 jobs next year. The principals’ union followed suit.

Gatsas said he met Friday with union representatives for principals, teachers and support staff.

“The conversations were productive,” he said. “We will keep working on it. We will see if we can’t get out of this impasse and get to a position where we can move forward.”

Gatsas said he expects to meet with the groups again this week.

Benjamin Dick, president of Manchester Education Association, on Saturday said nothing has changed. But, he said, “Both of us are keeping our doors open.”

Teachers with fewer than 14 years of experience get annual “step” increases as they advance up the salary ladder.

For the current year, base salaries range from $33,904 for a first-year teacher with a bachelor’s degree to $70,744 for a teacher with a doctorate and 14 years of experience, according to the school district.

The pay scale for a teacher with a bachelor’s degree currently tops out at $61,669. Teachers on the master’s-degree scale are two years ahead of the bachelor’s-degree scale, with a current top-of-the-scale pay of $65,736.

Faculty still climbing the seniority ladder received about $2,030 more this year for advancing one step on the scale. Scale raises will be worth about $2,080 next year. Increases for teachers hitting the top step are higher, due to an agreement to roll a $550 longevity payment into the pay scale.

Here’s an example of how it works: Dick, who teaches English at Manchester Memorial High School, is paid at the bachelor’s Step 10 level, currently making $52,213 annually. The 2.5-percent COLA would bring a Step 10 teacher’s salary to $53,519. Because of his step increase, Dick will make $55,602 next year, he said. That $3,389 annual raise amounts to $130 per two-week pay period.

For a new teacher, the 2.5-percent COLA is $847 a year or $33 per pay period.

And for a top-scale teacher with a master’s degree, the annual salary would go from $65,736 this school year to $67,379 the next, with a COLA of $1,643 a year or $63 per pay period.

Teachers also advance to a higher salary scale once they have achieved 30 credits toward their next degree, as well as when they receive a “terminal degree,” represented by a Certificate of Advanced Graduate Study (CAGS) or doctorate.

The pay scale for first-year teachers increases by 9.3 percent over the life of the agreement. However, with the annual step increases, a teacher who started in September 2009 will receive raises totaling more than 29 percent over the life of the agreement, not counting the first-year bonus.

First-year teachers also receive a sign-on bonus of 3.5 percent, payable after they make it through their first year.

The teachers’ contract includes an assortment of benefits, including:

-- Sick pay: One and a half days per month, up to 15 days per year. May be accumulated up to 120 days. At retirement with 20 years of service, a teacher is paid for up to 90 days of accumulated sick leave, up to 90 days. To reach the 90-day maximum sick leave buy-back, a teacher would have to bank 4-1/2 days each year for 20 years.

-- Death benefit: A full-year salary is payable if a teacher dies while employed by the district or within 60 days of leaving for retirement, disability or health reasons.

-- Tuition reimbursement: Up to $7,500 per year to pursue master’s degrees and relevant undergraduate courses. Capped at $100,000 for the district.

-- Conferences: Up to $500 per teacher for mileage, meals and registration with a district limit of $41,000 per year.

-- Free time: A duty-free lunch period and a daily preparation period for secondary teachers; five 45-minute preparation periods for elementary teachers. Losing a prep period carries a payment to the teacher of one-one thousandth of their annual pay.

-- Sabbatical: Teachers with seven years of experience are eligible for a year’s sabbatical for relevant work or education at 50 percent pay. Teachers must sign a promissory note to repay if they do not remain with the district for two years after their return. A minimum of three sabbaticals per year is specified by contract, which provides that the city will “make every effort” to grant two more.

Shawne Wickham of the Sunday News contributed to this report.