Jordan's government said on Saturday night it has reached a pay deal with the teachers union to end a one-month strike, Reuters reports.
The strike had disrupted schooling for more than 1.5 million students.
The deal came after the strike threatened a deepening political crisis when the government last week began legal steps against the unions after they rejected meager pay hikes they said were "bread crumbs" and the government said it could not afford to give more.
The pay deal that raises allowances from 35 to 60 percent to teachers from next year comes after weeks of deadlock with the government intransigent over meeting an original 50 percent pay rise demanded by the unions it said would strain the heavily indebted country's finances, according to Reuters.
The government fears new pay demands by other public sector employees, including doctors, and pension increases for retired soldiers would wreck efforts to restore fiscal prudence needed for a sustained economic recovery.
Jordan's economy has deteriorated in recent years for several reasons, including the conduct of recent governments and the kingdom’s intake of over a million Syrian refugees.
The economic situation has led to some protests in the kingdom. Last year, King Abdullah replaced his Prime Minister amid widespread anger over economic policies that sparked the largest protests in the kingdom in several years.
He later said that Jordan was at a crossroads and that a new way was needed to address challenges.
Jordan's main political opposition in recent years has come from the Muslim Brotherhood movement but it faces increasing legal curbs on its activities, leaving mostly pro-monarchy parties and some independent Islamists and politicians to compete in these elections, political analysts say.
The Jordanian branch of the Muslim Brotherhood was designated by the kingdom as a terrorist group in December of 2014 and one of its top members was later charged with "souring ties with a foreign country" by criticizing the United Arab Emirates (UAE).
At the same time, compared with the tough crackdowns on Islamist groups in Egypt and Gulf countries, Jordanian authorities have been relatively tolerant of the Brotherhood's presence.
The Brotherhood wants sweeping political reforms but stops short of demanding the overthrow of the monarchy in Jordan.