Palatine firefighters will be receiving modest raises after the Village Council unanimously approved a new three-year contract this week.

Under the new contract, which will take effect immediately, fire personnel will receive a 1 percent cost of living raise next year and another 2 percent in 2013. For 2014, the village will award a “mid-point” raise. This is done by comparing Palatine salaries to eight other nearby communities, such as Schaumburg and Hoffman Estates, and taking the average of the fourth and fifth highest.

The firefighters had been working without a contract since the end of last year as the two side continued negotiations. Everything in the contract will be retroactive to Jan. 1.

“We were able to negotiate the contract without bringing in outside labor attorneys by either party,” said Village Manager Reid Ottesen. “It was a nice effort.”

The raises apply to all rank-and-file firefighters and paramedics, as well as captains and lieutenants. Higher ranks are not under union contract and raises are determined by department heads.

Union members will continue to have step increases, which are given if certain merit and experience requirements are met. The salary bumps are on top on scheduled annual raises. According to the contract, the lowest hourly salary for union employees in the fire department is $19.95 an hour, while the highest is $38.71 an hour.

The deputy fire chief position pays between $96,451 and $120,558 a year, which is tied with the deputy police chief for highest pay, not including department heads, according to village documents. Battalion chiefs, one step below deputy fire chief and one rank above union employees, pays between $86,949 and $106,921.

The contact also includes adjustments to the promotion process.