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Normally, BT increases salaries by around one per cent above inflation, but has chosen to scrap planned pay rises.
Each increase of one per cent costs BT in the region £40 million.
A spokesman for the telecoms giant, which is also planning to axe 10,000 jobs this year, commented: "This has not been an easy decision but, given the tough economic climate, it is important BT meets these challenging times head on."
The move comes a day after car manufacturer Toyota cut the salaries and hours of its employees in the UK, affecting more around 4,500 workers at its plants in Burnaston and Deeside.
Recently, a number of celebrities, including pop star Cheryl Cole, BBC radio DJ Chris Moyles and Take That singer Gary Barlow all voiced the BT Speaking Clock in aid of Comic Relief.
