Teaching union NASUWT says it has withdrawn strike action planned for Tuesday (12 Sept).
The States Employment Board denied this, saying that it couldn't be implemented until the unions had balloted their members and agreed to the uplift in writing.
The NASUWT General Secretary, Patrick Roach, says that the ‘resolve of members’ meant the SEB agreed to pay the backdated pay, ‘whilst acknowledging that the NASUWT remains in dispute over pay’.
"This chaotic situation could have been avoided if ministers had paid the back pay along with the 7.9% award in July.
The government should move swiftly to resolve this, pay teachers what they are owed and then move on to meaningful negotiations around future pay and workload agreements.”
Despite the retrospective pay and the cancellation of 12 September walkout, the union says it 'remains in dispute'.
It says a decision will be made on the October strike dates 'in due course'.
The NEU and NAHT have told Channel 103 their members will still strike on Tuesday unless a 'deal can be brokered by midnight tomorrow' (11 Sept).
The NEU say its 'regrettable' the action will continue.
"The SEB had the opportunity to really make a breakthrough, with a clear new offer, in order to resolve this dispute today.
No talk of an enforced pay uplift or back pay at 7.9% will be enough for our members, who have already given up a day's pay in July to bring the attention of the crisis in education to the Island.
We regret the disruption in education to students, and the effect that the action will have on parents and the wider society."


Commonwealth Games: Nowacki into 100m breaststroke final
Channel Islands face 'physical' Poland test
Price of heating oil and other fuel increase by more than half in a year
Man jailed for importing nearly £600k worth of cannabis in bumpers of his car
Baby born on Guernsey's Marine Ambulance
Drug trafficker who claimed he was the ‘Accredited Dealer' jailed
Jersey men involved in cocaine importation sentenced
Commonwealth Games: Jersey flag and baton bearers confirmed