The Vanuatu Teachers Union is threatening to sue the government for cutting teachers' allowances without any consultation.
According to the Vanuatu Daily Post newspaper, both teachers' housing and family allowances have been cut.
The secretary general of the teachers' union said, in addition, the government had yet to increase teachers' salaries according to the new pay structure approved by a Government Remuneration Tribunal late last year.
Jean Joel Pakoa said the union was calling on the government to reinstate teachers' allowances and pay them their new salaries.
He said that due to the government's decision to cut their allowances, many teachers around the country had been unable to pay bills and meet other financial commitments.
Mr Pakoa said the union was calling on the authorities to delay the start of the 2018 academic year next week until February so the pay situation could be addressed.