Sutherland Shire councillors have accepted the 2.5 per cent pay rise, determined by the Local Government Remuneration Tribunal for all councils in NSW.
There was no discussion when the proposed fees for 2019-20 came before last week's council meeting.
Annual fees for councillors will increase to $30,410, while the mayor will receive $88,600.
The council resolved that the deputy mayor receive a fixed fee of 15 per cent of the mayor's annual fee, being $13,290.
In NSW, three independent bodies determine the pay of state MPs, senior public servants and judges, and councillors.
The Local Government Remuneration Tribunal said in its determination it was required under the Local Government Act "to give effect to the same policies on increases in remuneration as those of the Industrial Relations Commission".
"The current policy on wages is that public sector wages cannot increase by more than 2.5 per cent, and this includes the maximum and minimum fees payable to councillors and mayors and chairpersons and members of county councils," the tribunal said.
Fees vary according to the size of the council. Sutherland Shire is a "metropolitan large council", with five wards, each having about 33,000 residents.