As part of the agreement, an incentive plan for employees will be raised from 3.85% to 5% of eligible income, the company said late Thursday.
Fixed salary adjustment funds will also be set up each year from 2020 to 2026. The current Boeing contract expires in 2022.
The contract with the Society of Professional Engineering Employees in Aerospace (SPEEA) includes around 18,000 technical and technical employees.
The deal was approved by the SPEEA board and is expected to be voted by union members between February 24 and March 9, the US aircraft maker said.
(Reporting by Aakriti Bhalla in Bengaluru; editing by Arun Koyyur)