Hill would get a $325,000 bonus for winning a Cy Young Award, $150,000 for finishing second in the voting and $100,000 for third as part of the agreement announced Jan. 5.
He would get $50,000 for making the All-Star team or earning World Series MVP and $25,000 apiece for a Gold Glove or League Championship Series MVP.
A Boston native who turns 43 in March, Hill went 8-7 with a 4.27 ERA in 26 starts for Boston last year. Hill made his big league debut with the Chicago Cubs in 2005. Pittsburgh will be his 12th major league team.
The 6-foot-5 left-hander, known for his curveball, is 82-59 with a 3.85 ERA in 350 career appearances, including 221 starts.
Hill joins a growing list of new faces with the Pirates. Carlos Santana, a first baseman and designated hitter, signed with the team in free agency, and first baseman Ji-Man Choi was acquired in a trade with Tampa Bay. Catcher Austin Hedges and right-hander Vince Velasquez also agreed to contracts as free agents.
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The Associated Press