City officials said last week that the new contract is meant to be a cost-saving measure for Belmont while providing a competitive salary and benefits to employees.
Under the new contract, the city's public safety workers agreed to contribute an additional three percent of their salaries toward their retirement plans during the third year of the agreement.
Public safety employees in the city have also agreed to forgo a sick day cash-out option upon resigning as part of the new contract.
Belmont City Manager Greg Scoles praised the agreement as an "excellent example of labor and management working together to resolve the very real problem of increasing pension and benefit costs."
City officials expect to begin negotiations on two other city employee labor contracts in late winter.