All Cabinet members and all junior ministers are to take a 10% pay cut.
This will be backdated to the beginning of the new Government at the end of June.
Taoiseach Micheál Martin said the decision had been taken by the three coalition party leaders some weeks ago but the memo was brought to Cabinet today by the Minister for Public Expenditure.
Mr Martin also acknowledged that the issue of extra pay for super juniors could have been handled better by the Government.
The Opposition had strongly criticised a move by Government to give three super juniors an extra allowance of €16,000 rather than the usual two.
Legislation to give effect to that was passed in the Dáil last Friday when it was decried by several Opposition members.
Cabinet also agreed that they would not accept a 2% pay increase this October under the Public Services Stability Agreement.