The Gardendale City Council voted Monday to give all full-time and part-time workers a 2-percent raise effective Oct. 1.

In addition, the city reinstated merit raises after halting all pay increases last year due to the economic recession.

“Our employees had not had a cost-of-living increase in three years and there were no merit increases last year,” said Gardendale Mayor Othell Phillips. “It was time. It was deserved.”

The raises are not related to the 1-percent sales tax the city enacted on Oct. 4 and that go into effect in January 2011.

In addition to salary increases, the resolution states that city will assume 50 percent of an increase in Blue Cross Blue Shield insurance premiums for employees with family coverage and 80 percent of the increase for employees with single coverage.

Phillips said the company increased insurance premiums 11.5 percent this year and 25 percent last year. Both years, the city split the increase with employees.

Phillips said that because of the increase in insurance costs, Gardendale employees are making less now than they were three years ago, because there have been no raises.

The city will pay 100 percent of the increases on Nov. 1, with employees paying their portion of the increases starting on the first pay period in November.