Public servants earning more than $60,000 will only be offered pay increases under exceptional circumstances for the next three years.
Senior leaders and those on more than $100,000 dollars will get no raise at all. It's not just the officials in Wellington who will be affected - it's all those on the government's payroll.
The National Party says the government is penalising police officers, teachers and nurses.
Melanie Webber is the President of the Post-Primary Teachers Association, and Chris Cahill is the President of the Police Association.