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.
The announcement comes in the wake of criticism over the pay increase announced for super junior ministers.
The Dáil last week the Dáil approved legislation giving a €16,000 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'.
However, it means the three super junior ministers will still be technically getting a pay rise despite the 10% overall cut.
The Government had faced strong criticism for passing the legislation allowing for the pay increases for the three ministers of state.
The Irish Medical Organisation described the situation as "gross hypocrisy", highlighting that many consultants in hospitals earn less than their colleagues "purely based on the date of their employment".
A number of Government ministers had acknowledged the frustration, with Higher Education Minister Simon Harris today admitting the situation had 'stuck in the craw of many, many people'.
