The Minister for Public Expenditure says the Government received "strong" legal advice that pay restoration for judges had to take place.
The cabinet approved a 2 per cent pay increase for members of the judiciary and opposition party whips yesterday, which has drawn widespread criticism.
The decision comes after the Government rejected a proposal to pay student nurses for their work during the pandemic.
The Dáil heard that student nurses and midwives were being used as 'slave labour' and are unable to work outside the facility they are completing their placement in due to the risk of spreading Covid-19.
However, Minister Michael McGrath says the Government's hands were tied.
"Despite what we might like to do, the truth is that, based on the legal advice that we have received, these restorations must take place.
"That doesn't mean that everyone has to accept these pension restorations," Mr McGrath added.