Bloomington Public Schools approved its contract with the Bloomington Federation of Teachers earlier this week.

Teachers in the district will receive a 1.5 percent salary increase for each year of the two-year agreement. The raise would be in addition to increases for annual years of service and education attainment for teachers.

The contract adds a salary increase of $350 and $1,250 for teachers with bachelors and master's degrees, and $250 for teachers who have 18 years of experience. Teachers with 23 and 28 years will receive a $300 raise. The salary increase is also accompanied with an increase in health insurance and health savings account contributions for teachers.

The district and the Bloomington Federation of Teachers first reached an agreement in September following prolonged negations and rising tension between teachers and the district.

Bloomington Public Schools was the last district in the Twin Cities area to settle its labor contract.

Under the agreement, teachers and administrators are required to form a committee for future labor and instructional discussions.