Montana Governor Steve Bullock says his administration has reached an employee pay agreement with the three major state employee unions for pay and insurance contribution increases that would begin in 2016. The agreement will have to be approved by the 2015 Legislature.

Under the agreement, state employees will receive a 50-cent-per-hour raise in their base pay in October 2016 and again in October 2017.

The state will increase its contribution toward state employee insurance costs by 10 percent in January 2016 and by another 8 percent in January 2017.

Budget Director Dave Villa says the total cost of the proposed pay and insurance increases is $78.5 million over the two years.