Primary school teachers and principals are set to go strike next month.

It comes after they rejected the government's pay offer of a 2.2% pay increase.

National says the government is cashed up and there's no reason why the government can't meet teachers' demands.

President of New Zealand Educational Institute Lynda Stuart says holding on to teachers isn't an easy proposition.

"It's the low pay and workload that's putting teachers off."

Those are the main reasons why teachers and principals are considering going on strike next month.

After handing over the finances in good shape, Nationals Nikki Kaye is questioning why the government can't meet teachers' demands.

"They're cashed up - why can't they deliver?"

The New Zealand Educational Institute's Māori liaison Laures Park says teachers have plenty of support for the planned strike action.

"Parents support us because they see the work that we do."

Talks will continue between NZEI and teachers over their strategy.