Northampton Borough police officers will soon be working under a new contract.

Council at the Dec. 4 meeting approved a new two-year contract which grants a 2-percent pay hike in 2015 followed by a 2-percent pay increase in 2016.

The contract now also requires that uniformed police officers contribute to their medical insurance coverage.

"As part of the new contract, the police will be co-paying $30 per pay in 2015 and $40 per pay in 2016 toward their medical insurance," borough Manager Gene Zarayko said.

The contract also includes a 2-percent reduction in police pension costs, which Zarayko said comes to $70,000.

Both sides agreed to the contract, thereby avoiding binding arbitration. The negotiating teams met until an agreement on the contract terms was reached.

The police department's current roster includes 12 officers. The police chief is not part of the bargaining unit.

Council Vice President and Police Committee Chairman Robert McHale, along with Zarayko and borough council, represented the borough at the talks.

In a separate action, council adopted a resolution setting the contribution rate police department employees make to the police pension plan at 6 percent.