wage freeze

wage freeze
A prohibition on changes in wages, imposed as part of a prices and incomes policy. As a temporary measure a wage freeze may help to cut inflation. It is very unlikely to be a practical long-term policy: the pattern of wage rates in force at the time the policy starts is unlikely to equilibrate labour markets even at the time, and will become steadily less suitable. A wage freeze is difficult to enforce, as job descriptions can be changed, and operates unequally between workers on static wage rates and others on progressive salary scales.