Jones will earn a salary of $2.25 million for 2012 instead of the $2.5 million he had requested. It's a hefty raise from the $455,000 he was paid in 2011, when he hit .243 with 16 homers and 58 runs batted in.
The 30-year-old Illinois native has spent the last three seasons with the Pirates after appearing in 31 games for Minnesota in 2007. He slugged 21 homers in each of his first two seasons in Pittsburgh and has 60 career home runs with 193 RBI and a .254 batting average.
Terms of McGehee's deal were not disclosed, but he had asked for $2.725 million through arbitration and the Pirates had offered $2.35 million.
McGehee was acquired from Milwaukee earlier this offseason in a deal that sent pitcher Jose Veras to the Brewers. He became expendable in Milwaukee when the Brewers signed former Pirate Aramis Ramirez as a free agent.
After a pair of promising seasons, including a 23-homer, 104-RBI campaign in 2010, McGehee hit just .223 with 13 home runs and 67 RBI in 155 games last year. He also batted .301 in 2009, his first season with the Brewers.