MPs are set to receive an 11 per cent rise after the 2015 general election to take their pay to £74,000.
The Independent Parliamentary Standards Authority is also expected to announce a squeeze on pensions and the resettlement grants that MPs are given when they leave Parliament.
An MP's basic salary is £66,396 but when the Parliamentary watchdog publishes its final recommendations on salaries this week it is expected to say that their pay has fallen behind in recent years and a substantial "one-off" rise is justified.
All three party leaders disagreed with the rise — which will cost taxpayers £4.6m — when it was first proposed.
The move takes MPs' salaries to nearly three times the national average wage of £26,500, at a time of ongoing austerity.
The new arrangements, due to take effect from May 2015, will also require MPs to publish an annual report explaining their achievements during the year to their constituents.