CLOCK TOWER at Westminster Civic Center (OC Tribune photo).

A pay increase of 10 percent for most municipal employees was approved by the Westminster City Council on Wednesday.

On a 5-0 vote, the council approved “Memorandums of Understanding” between the city and the Westminster Municipal Employees Association and Westminster Police Officers Association, with conditions also covering certain other city employees.

Previous agreements expired on June 30, 2020. A salary study found that 91 percent of city employees were paid below the median of similar cities.

The agreements will go into effect on July 2, 2022 and be effective through June 30, 2023. The annual cost is $2.766 million and is dependent on the anticipated budget shortfall being resolved.

The salary increase is not retroactive and does not compound. In addition to the pay hike, employees will retain nine additional hours of floating holiday time. A $100 monthly increase toward the medical Family Plan only is also in the deal.

A mechanism for adjusting the salaries of employees who are below the medians established through the compensation study is also included.