CALDERDALE Councillors have voted to take away unmeasured bonuses from its staff.
At a full council meeting councillors voted to remove the payments to bring the authority in line with Equal Pay legislation.
If they had not, the council could have faced litigation.
Around 150 council employees currently receive unmeasured bonuses.
The majority will lose between £50 and £150 each month because of the removal of bonuses.
To soften the blow, councillors voted to offer interest free loans to staff affected by the bonus cuts.
Clr Stephen Baines, leader of Calderdale Council, said: “The council has been forced to remove unmeasured bonuses to comply with Equal Pay legislation.
“However, we are determined to minimise the impact on our staff and their families – we have explored every legitimate option to support them.”
Employees will be able to request a monthly loan up to the net amount they will be losing.
Monthly loan payments will be available from September for up to two years, or until a maximum loan amount of £5,000 has been made.
Repayments will begin after a 12 month payment holiday. No interest will be charged.
Clr Baines added: “The interest free loan scheme offers them an affordable way to cover any shortfall while they adjust to their new salary payments.”