New Carlisle employees and city management agreed to a new contract that will increase employees’ costs for their health insurance but also boost their life insurance coverage, step increase their wages and add a personal day.

For the first time, unionized city employees will have to pay 5 percent of their health insurance premiums because of a more than 17 percent increase in cost to the city over last year as part of the three-year contract, City Manager Kim Jones said.

According to the agreement, employees would have to pay even more to their health insurance premiums if, during the contract, renewal costs increase between 10 and 15 percent and more than 15 percent.

If that would happen, workers would pay 20 percent and 25 percent, respectively, of the amount of the increase, according to the agreement, in addition to any previously-imposed share.

The city will continue to fund 60 percent of employees’ health savings accounts as it did in the last three-year contract, Jones said.

Officials also agreed to a $20,000 increase to employees’ life insurance coverage. Permanent, full-time employees will now be covered to $50,000.

It also secures a 20-cent per hour wage increase the first year and a 25-cent per hour increase in 2014 and 2015, though that’s a lower increase than in the last three-year contract at 45, 46, and 47 cents per hour, respectively.

Most other changes involved clarifying existing language, Jones said.

A union official could not be reached for comment.

The contract was approved by council at its meeting last week. The Dayton Public Service Union Local 101 of AFSCME Ohio Council 8 represents 15 full-time New Carlisle employees.