A 2.5 percent pay raise and healthcare adjustments are part of a new benefits package for more than 5,000 employees announced Wednesday by Mayor Michael Nutter.
The new package, which becomes effective October 1, also includes proposed pension changes, work rule changes and the reinstatement of step and longevity increases.
Mayor Nutter says at the heart of the package is a "connection between employee pay raises and benefits reform" that is expected to move Philadelphia toward fiscal sustainability.
"As we struggle past the impact of the Great Recession, we must simultaneously act with fairness toward both hard-working public servants and taxpayers," Nutter said in a statement.
According to the city, the new compensation and benefits reform package will be offered to employees throughout the executive branch of the city's government, along with employees in independently elected offices, such as the sheriff's office and district attorney's office.