In an email to all staff FSA chief executive Hector Sants said the regulator had not put aside funds for pay increases this year.
He said the FSA’s bonus pot would be the same as last year at 15 per cent of the total salary pot.
The email said: “There will be no pay rise for the vast majority of staff.”
An FSA spokeswoman says the decision takes into account “the general economic climate and pay trends in the marketplace”.
She adds: “Some performance related bonuses may still be paid in relation to performance last year.”