The province says its agreement with the Association of Management, Administrative and Professional Crown Employees of Ontario includes a wage freeze in the first two years and a 1.4 per cent wage increase in each of the third and fourth years.
The accord follows a two-year deal that included no wage increases in both 2012 and 2013, totalling four consecutive years without an increase.
The government says the agreement is consistent with the fiscal plan outlined in its 2014 budget, which includes no new funding for compensation increases.
It says the cost of wage increases in 2016 and 2017 are being offset over the four-year term through changes to benefits and entitlements, making it a net zero agreement.
It also says one of these changes is the elimination of exit pay, which will reduce future costs and save taxpayers about $55 million this year.
The deal was reached in early August after six months of bargaining.
AMAPCEO represents 11,500 employees who work directly for the government.