All bonuses for staff at Irish Water are to be put on hold, while they undergo an independent review.
All performance-relayed pay for 2013 and 2014 will be held back until the review has been concluded.
The news comes as the cabinet meets to consider the details of a new system of water charges, which won't kick in until the new year.
The new system - which will see charges kick in (again) on January 1 - will see single-adult households with charges capped at €76 for the first four years, while all other homes will have charges capped at €178.
Homes whose meters show them using less than the 'assessed' amount will have lower bills - while those prices also factor in a new universal €100 grant which can be claimed by every home in the country.
Meanwhile organisers of the next major national demonstrations against water charges says anyone who wants to cause violence should stay away.
Their comments follow a Fine Gael event in Sligo last night, where one water charges protestor jumped on the bonnet of Enda Kenny's car.
There has also been criticism of the actions of both Gardaí and protestors over the weekend, with Gardaí accused of using excessive force in the face of what others see as intimidatory tactics by a number of protestors.
Our political correspondent Gavan Reilly filed this report for Today FM's National Lunchtime News:
