The sides agreed to reduce the school week from six days to five in 35 towns around the country, to increase retirement benefits for 3,300 retiring teachers, and to reinstate 1,500 teachers who received termination notices earlier this summer.
Teachers: No winners, losers
Yossi Wasserman, the head of the teacher's union, said there were no "winners and losers" in the agreement, but then said the agreement represented a "big victory" for the teachers.
"I have no interest in talking about 'winners' and 'losers', but we can say that the teachers have scored a big victory.
"If (Education Minister Limor Livnat) comes to us and says 'I want to open a new page with the heads of the teacher's union for the advancement of education in Israel' – we'd be happy to put all our disagreements aside to sit down and talk.
"But if she continues to wage war on us," he said, "she will of course get warfare in return."
Livnat: new knowledge, values
Education Minister Livnat also praised the agreement.
"The education revolution will grant students new knowledge and values, and will correct the conditions under which they study.
"The reform will be done in cooperation with the teachers. I have no doubt the fruits of this revolution will become clear to us in the coming years."