Almost 2 000 teachers have had an early reprieve after Premier Ebrahim Rasool and Education MEC Cameron Dugmore announced on Monday that they would not be laid off.
In addition, 365 other teaching posts will be created next year - a boost from 29 715 to 30 080 - and be distributed among primary and high schools, further education and training colleges and special needs schools.
Teachers' unions have welcomed the move, saying it had "averted a major crisis in the Western Cape". But the Democratic Alliance said it was just a drop in the ocean of the province's dire education needs.
Earlier this year, it was estimated that 1 900 teachers would have to be sacked as there was not enough in the education budget to employ them.
Said Rasool: "With the additional resources that have been made available, we are pleased to announce that not a single educator will lose his or her job. In addition, we will be able to grow our establishment by 365 educators next year."
He said the decision was made at a lekgotla of his executive committee where funds were reshuffled to give a boost to the education department and save teaching posts.
The amount needed, previously estimated at over R200-million, could not be confirmed by Rasool and Dugmore on Monday.
"We had to take money from somewhere else. There was a deliberate decision to ensure the stability of the education department at the expense of an extensive economic growth plan for the Western Cape.
"We had to curtail our economic growth programme - this was not my first choice, but it was the only choice," said Rasool. He went on to warn teachers who were consistently late for classes or absent: "Because of the major sacrifice that we have made with our budget, we expect teacher performance to be high.
"Those educators who are not pulling their weight and are giving this noble profession a bad name - their days are numbered.
"If ever we face the unpalatable decision again to reduce the number of educators, we will visit this decision on those educators who show no commitment to learners, do not perform and lack discipline."
Rasool denied that he was referring to teachers who went on strike recently in protest at government's proposed salary increases for civil servants.
Each September, schools were told about the number of teachers their schools would have the next year. This year schools have had to wait because of the possible sacking of 1 900 teachers.
Dugmore said: "This has been a difficult time for our schools. Now we have more stability and I think this will be a boost for our educators.
"One of the reasons for the need for more funding is the increase in learner numbers."
Democratic Alliance education spokesperson Shahid Esau said the lack of schools and teachers had become a "crisis situation" which was not being properly addressed by the education department.
"We need 65 more schools but they are only building 12 at the moment. And we need 1 900 more teachers by 2006. There is a serious shortfall," said Esau.
"The MEC wants schools to take in more learners, but we must not overcrowd schools.