PROVIDENCE — Governor Daniel J. McKee’s administration has reached tentative three-year contracts with state employee unions that would provide raises of 5 percent this year, 4 percent next year, and 3 percent the following year.

Final approval of the tentative agreements is subject to ratification by the membership of Rhode Island Council 94 (American Federation of State, County, and Municipal Employees) and the Coalition, a group of labor organizations representing other state employees.

The administration and the unions made the announcement Friday, saying the contracts would boost wages while providing millions of dollars in potential savings in health care.

“Amid a labor shortage in key areas and inflation, we must remain competitive with both the public and private sector as we continue to find new and better ways to deliver services to Rhode Islanders,” McKee said. “These agreements strike a fair balance to help support our critical workforce, to address rising prescription and medical costs, and to standardize our operations.”

Council 94 State Vice President Michael McDonald said, “This tentative agreement provides our members with fair and equitable raises and ensures the continued provision of high-quality state services that the citizens of Rhode Island demand and deserve.”

The 5 percent raise would take effect as of July 1 of this year. The 4 percent raise would take effect on July 1, 2025. And the 3 percent raise would take effect on July 1, 2026.

The contracts would include a prescription drug cost-management program for certain specialty drugs, which could save the state up to $3.3 million while also saving money on out-of-pocket costs for state workers, according to Friday’s announcement from the state and unions.

And the contracts would include “virtual musculoskeletal program” that offers personalized care for workers with joint and muscle pain, saving the state up to $1.2 million, according to the joint announcement Friday.

The agreements offer more overall vacation days for employees who have been working for the state for less than 10 years. And they standardize language across contracts in advance of the state launching its new system for human resources, payroll and finance in 2025.

“The Department of Administration is pleased to have reached tentative agreements with our labor partners that reflect our commitment to our employees as well as government efficiency,” Director of Administration Jonathan Womer said. “We have a lot of exciting projects in the works, but the upcoming launch of our new human resources, payroll and finance system is our most important one right now.”

Carly Iafrate, one of the Coalition negotiators, said state employees deserve fair wage increases amid significant changes in working conditions and inflation. “We are extremely pleased we were able to reach a fair agreement with the State and to do so efficiently,” she said. “We look forward to the ratification process with our members.”

Council 94, Rhode Island’s largest public employee union, represents approximately 4,000 active state employees.

The Coalition is a group of individual bargaining units who have agreed to bargain with the state on areas of common interest, including the Laborers’ International Union of North America, the professional unit of the Rhode Island Brotherhood of Correctional Officers, several local units of the Service Employees’ International Union, several local units of the National Education Association, the R.I. Federation of Teachers and Health Professionals, the United Nurses and Allied Health Professionals, the National Association of Government Employees, and the Rhode Island Probation and Parole Association.

Edward Fitzpatrick can be reached at edward.fitzpatrick@globe.com. Follow him @FitzProv.