The pay cut amounts to 5.9%, but when coupled with five days unpaid leave equates to around 8%.
In the original deal rejected by staff, the New York Times Company, which owns the paper, had demanded a 10% plus pay cut. When this was rejected it imposed a 23% pay cut.
The deal will result in the end of lifetime job guarantees for around 170 senior Boston Globe staff and the freezing of the paper's pension plan for the 670 Boston Newspaper Guild members.
Overall the package will save The Boston Globe $10m with another $10m in savings coming from the other unions at the paper representing press operators, mailers, and delivery truck drivers.
The deal, which still needs to be voted on by union members, came after journalists dramatically rejected the original cuts package on June 8.
P Steven Ainsley, the Boston Globe publisher, said: "Our aim throughout our negotiations has been to achieve the necessary savings in a way that causes the least hardship for our employees.
"We're very pleased to have reached an agreement that accomplishes those goals."
Daniel Totten, the Boston Newspaper Guild president, said: "It's been an exhausting process and a very difficult process for the members."
With a potentially damaging labour dispute out of the way the New York Times Company is in a stronger position to sell the paper to one of three possible bidders who have emerged -- Hill Holiday founder Jack Connors, private equity executive and Celtics co-owner Stephen Pagliuca, and Stephen Taylor, a former Globe executive.
The Boston Globe reported that the second deal was more likely to be agreed by when members vote on July 20 as unlike the earlier offer this one will be recommended by union officials.