Victoria's 42,000 state school teachers have won a pay rise of between 16.1 per cent and 20.5 per cent over three years after an epic 18-month battle with the state government.

The decision will also impact on teachers at Catholic schools, whose wages are tied to those in state schools.

Under the deal, principals will be awarded a 17 per cent to 19.6 per cent increase and education support staff a 12 per cent to 17.1 per cent rise. All will receive a one-off lump sum of $1000 on top of their salary.

Australian Education Union state president Meredith Peace said the in-principle agreement - which exceeds the 12.6 per cent pay rise over three years the union had been seeking - was a ''significant win''. It factors in promotions over the course of the EBA.