PCB Director Abbas Zaidi said the board had gone for the pay increase because the players were the reason for the improving financial position of the ruling body.
- Schedule: Pakistan in England
The players had been campaigning for a pay rise and captain Inzamam-ul-Haq said it was a big incentive.
"The players are satisfied with the raise and also with the incentives announced by the board," Inzamam said.
Zaidi, however, said central contracts would now be awarded to only 20 players instead of 23.
Off spinner Arshad Khan, batsman Yasir Hameed and seamer Shabbir Ahmed, who is serving a 12-month ban by the International Cricket Council (ICC) for an illegal bowling action, were the players to miss out.
Pakistan play four Tests and five one-day internationals in England starting next month.
