PAY increases for MPs, mayors and possibly judges and magistrates will be capped at 2.5 per cent in a bid by the O'Farrell government to counter criticism of its crackdown on the wages of front-line public servants such as teachers, nurses and firefighters.

The Herald revealed on Saturday that the Premier, Barry O'Farrell, planned to limit pay rises for NSW MPs in response to union anger over his controversial wages legislation, which passed the upper house yesterday.

"If our front-line workers are going to have their salaries limited to 2.5 per cent, the same restriction should apply to members of Parliament and other senior public servants as well" ... Barry O'Farrell. Credit:Andrew Quilty

It requires the NSW Industrial Relations Commission to abide by the policy that any rises above 2.5 per cent be paid to public servants only when employee-related savings are achieved.

As unions prepare to protest outside Parliament at lunchtime today, Mr O'Farrell will announce that cabinet has agreed to cap pay rises for the 135 MPs to 2.5 per cent and extend it to public servants whose pay is determined by NSW remuneration tribunals.