All Government ministers will be taking a 10% pay cut, according to the Taoiseach.
It will be backdated to the formation of the new Government at the end of June.
It comes after the controversy about a €16,000 pay increase for the three super junior ministers.
The Dáil last week the Dáil approved legislation giving the allowance to the three ministers of state - Fianna Fáil's Jack Chambers, Fine Gael's Hildegarde Naughten, and Green Party Senator Pippa Hackett.
Taoiseach Micheál Martin this evening acknowledged that the Government could have handled the situation better.
He said: "The idea was that two were already in receipt of a particular rate, and the third wasn't.
"That said, I think it could have been handled better collectively by the Government - I acknowledge that.
"The Government today has taken a decision to gift back 10% of its salaries back to the State as and from the commencement of Government.
"That's a 10% cut in the rate of pay for the Taoiseach, right down the entire Government - and the ministers of state as well."
He stressed that the decision is across the board, describing it as an 'important measure'.