Yahoo is freezing staff pay this year in response to the recession.
The austerity move is the first cost-cutting action taken by Yahoo's new chief executive Carol Bartz, who was hired two weeks ago.
Yahoo has about 13,700 employees after laying off 1,500 workers last month.
No other job cuts are planned, said the company.
Register now to receive ComputerWeekly.com IT-related news, guides and more, delivered to your inbox.