The agreement, which covers 2010 to 2012, includes a new player contracting and payment model and means Super rugby franchises can now contract players directly, regardless of which province they represent. That includes two overseas players per franchise in a final squad of between 30 and 32 players.
The All Blacks could be in for an extra windfall, with the agreement including a $35,000 individual bonus if they make the World Cup final on home soil, and another $65,000 if they win their first title since 1987.
Players will be employed on an NZ Rugby contract, rather than the existing NZRU contract, which can include a Super rugby retainer (with an annual maximum of $180,000) and an NZRU retainer which will have no upper limit.
Super rugby franchises will contract an initial squad of 28, before the draft process, and from next season will be permitted to sign two overseas players - subject to certain criteria and NZRU approval.
The minimum Super rugby retainer will increase to $70,000 next year, up from the current $65,000. Players drafted in from outside the initial 28-man squad will receive a minimum of $60,000, while another 40 players will be handed wider training group contracts with a minimum retainer of $20,000.
In the ITM Cup national provincial competition, each union must contract at least 26 players (excluding players named in the initial Tri-Nations All Black squad) on a minimum annual retainer of $15,000.
The maximum amount that can be paid to a player is $60,000 a year, though each union may pay two veteran players (someone who has played eight or more seasons for the same union) up to $90,000.
A provincial union may contract an unlimited number of players on development contracts, and will also receive $35,000 for any player selected in the initial Tri-Nations All Black squad.
The provincial salary cap will no longer include notional values but the discounts for All Blacks, former All Blacks and veteran players will continue.
The new salary cap for each union will be set at the lesser of $1.35 million or 36% of a union's commercial revenue, based on audited accounts from the previous two years.
The agreement also confirmed the previously discussed changes to the ITM Cup from next year, with two divisions of seven teams and a promotion-relegation system.
In each of three contract years (2010-12), 36% of NZRU player-generated revenue will be set aside in a player payment pool. From 2011, 36% of combined annualised Super rugby franchise player-generated revenue in excess of $24 million will be also be added to the player payment pool.
NZRU general manager professional rugby Neil Sorensen welcomed the new agreement as a significant milestone.
With the new broadcasting arrangements and the extension of the adidas contract through to 2019, it would provide significant certainty about the future of the professional game, he said.
"Today marks the culmination of that work from players, the NZRPA [Players Association], provincial unions, franchises and the NZRU," he said in a statement.
NZRPA chief executive Rob Nichol also welcomed the formal agreement.
"The players are proud of the results the process and final agreement has produced for rugby in New Zealand but we know we still have ongoing challenges and opportunities to address to ensure rugby's long term growth and success."
Collective agreement - The facts
• Runs from 2010 to 2012
• Super franchises contract players directly
• Squads expanded to 30-32, with up to two overseas players allowed subject to criteria
• Super retainer up from $65,000 to $70,000
• Provincial players may earn a maximum salary of $60,000, except for two veterans (eight years) allowed up to $90,000
• Provincial salary cap set at $1.35 million or 36% of a union's commercial revenue
• All Blacks to earn $35,000 bonus for reaching World Cup final plus another $65,000 if they win it
