The biggest union of Bainbridge Island city workers has voted to approve a new contract with the city.

The Bainbridge council also gave the agreement its unanimous approval on Tuesday.

The two-year contract — which follows a bargaining agreement that expired at the end of last year — will run through the end of 2016.

Under the terms of the agreement, city employees will get a 1 percent pay increase for 2015, and a 1.25 percent increase in 2016.

City Manager Doug Schulze said the new agreement also includes a revised compensation scale, and the change from a five-step scale to a nine-step scale will mean an average salary increase of 1.9 percent in addition to the two back-to-back salary increases built into the contract.

City employees will also be eligible for step increases that will increase their base salaries each year, based on satisfactory performance.

The proposed agreement with the International Association of Machinists District Lodge 160 covers 65 city workers, including clerks, planners, public works employees and others. The city’s uniformed police officers are covered under a different union contract.

The collective bargaining agreement was ratified by union members last week.

Paul Miller, the business representative for the city of Bainbridge employees, did not respond to requests for comment.

The 24-page agreement includes sections on union representation, nondiscrimination, strikes or lockouts, probation and benefits.

On benefits, full-time employees get 12 paid holidays.

Schulze also said an additional vacation day was added: Christmas Eve.

Vacation time varies by the number of years with the city, from 12 vacation days a year for employees who have been with the city three years or less, to a maximum of 23 vacation days for employees who have 25 years or more with Bainbridge.

Employees can earn up to 130 days of sick leave, and will be paid 50 percent of their hourly rate for any days accumulated past 1,040 earned hours.

Health benefits will mostly be paid for by the city.

Under the proposed contract, the city will pay 100 percent of the premiums for dental care for employees, their spouses and children.

The city will also cover all of the premiums for an employee vision plan, plus a $40,000 life insurance plan.

Employees will also have all of their medical insurance premiums covered for a Regence High Deductible Health Plan, and the city will also pay the premiums for employees’ spouses and children.

The city will also contribute $3,250 annually into a health savings account for employees with families; Bainbridge will contribute $2,250 annually toward the health savings accounts of employees who do not have dependents.

Benefits also include reimbursement for college tuition and books for employees, based on the discretion of the city manager.

Public works employees will also receive yearly clothing allowances ranging from $250 to $350, and workers who wear safety boots are eligible for a $200 reimbursement payment.

Mechanics will also be reimbursed for up to $500 a year for tools.

The agreement will be retroactive to Jan. 1.