About 10,000 state employees will see a 2.25 percent pay raise over each of the next two years, following a newly ratified union contract.

Bill Wood, chief negotiator for the state, says the contract for state employees covered under the Nebraska Association for Public Employees was ratified last month.

The raises are an improvement from what the employees have seen over the last two years. Unionized state workers went without pay raises in the 2011-12 fiscal year to help cover a $1 billion gap in the state's budget. This year, they received a 2 percent raise.

State employees will see some higher health care costs under the new contract.

Employees' health insurance premiums will not rise the first year, but employees will be charged higher deductibles and out-of-pocket costs.