The employers' body IBEC has warned workers that any expectation of pay rises before 2013 is unrealistic.
IBEC had previously only ruled out pay increases up to the end of 2011.
The warning comes as IBEC published the results of a survey showing that the majority of companies still could not afford pay increases over the next two years.
According to today's IBEC survey of 467 companies, the total pay bill of companies fell by just under 3% this year. Around seven out of ten firms had imposed pay freezes.
However, around 13% went further, cutting basic pay rates by an average of 11%. 6% expect to cut basic pay further by on average 9.5%.
New employees fare even worse, with their wage rates falling by up to 25% from pre-recession levels.
Up to now, IBEC has consistently warned that there should be no pay rises before the end of next year.
However, IBEC Director Brendan McGinty has now insisted that in the current climate, any talk of pay rises before 2013 would be unrealistic.
He said that having shed 270,000 jobs over the last two years, unemployment was the single biggest issue facing the economy.
He added that Irish wage levels remain significantly out of line with many of our key trading partners - hampering job creation.
However, employees will not easily accept such an extended pay freeze, as they face into the possibly toughest Budget ever.
