Monmouth's city council and the firefighters union each ratified the three-year contract by a unanimous vote.
Firefighters will receive a 2.5% pay raise each year of the deal.
The city and the union each wanted similar changes in the time-off policies. The city wanted to reduce overtime. The union wanted to reduce the likelihood firefighters would be called in on their days off.
City Administrator Eric Hanson said the major change was to vacation policy.