The independent Remuneration Tribunal has frozen the salaries of federal politicians and senior public servants for a year from July 1.
The tribunal said in a statement it had taken on board a submission from the government in making its decision, which covers a wider range of officials than that sought by the government.
The government advised the tribunal that MPs and most senior public servants should “lead by example” and no increases in pay should be approved for at least a year.
“For some months, noting the government’s policy, it has been evident that any wages movement in the APS and federal public sector would be restrained,” the tribunal said.
“Indeed, at its April meeting, the tribunal’s preliminary conclusion was that it would determine no annual review increase for offices in its jurisdiction from July 1.”
In deferring a decision on a pay rise for a wider range of senior public servants than recommended by the government, the tribunal said: “The question of budget stringency should apply to all offices equally.”
But it described the decision as a “temporary pause” and would monitor economic and wages growth.
“The (tribunal) remains committed to ensuring remuneration levels for public offices are competitive and maintained at levels that support the significant and valuable contribution of the office holders,” it said.