Politicians will get a £2,000 pay hike on April 1st, taking their income from £81,932 to £84,000.
On the same day, millions more people will be squeezed by rising National Insurance, energy and council tax rates.
The Taxpayers' Alliance slammed the proposed rise, claiming legislators should be rewarded according to the country's economic performance.
MPs' annual compensation rises are generally linked to average public sector pay increases, which this year would be 2.7%.
The flu halted last year's pay raise, and the spending watchdog, the Independent Parliamentary Standards Authority, can do so again.
The IPSA said on Friday that a decision on MPs' pay for 2022-23 will be made early in 2022, taking into consideration ONS data and other relevant information.
‘Now is not the time for MPs to seek a pay hike,' said the Taxpayers' Alliance.
‘Politicians' remuneration should be connected to the country's economic performance,' said Alliance CEO John O'Connell.
The remarks came as fresh data shows UK household income had begun to fall before the outbreak.
The ONS says the median wealth of British families has climbed 20% since pre-crisis to £302,500, according to Mail Online.
But between 2018 and 2020, the latest data available, the figure grew ‘marginally'.
Tax increases, rising energy costs, and inflation may severely compress British families' incomes in the coming year.
Senior Tories are already debating whether the government supports families adequately.
Rishi Sunak is receiving criticism in the Commons for raising national insurance by 1.5% in April.
Tories are split over high taxation and rising living costs.
During Wednesday's Cabinet meeting, Jacob Rees-Mogg reportedly persuaded the Chancellor that the National Insurance raise should be cancelled to combat rising inflation and energy costs.
Backbencher Jake Berry said ignoring the cost of living ‘tsunami' will lose the party votes.
Last month, Brexit Minister Lord Frost resigned from the Cabinet, citing concerns about hefty taxes.
But the Chancellor says avoiding difficult choices is unwise.
‘If you take a step back and look at why we're in this situation, it's because we're facing an unprecedented level of backlogs in the NHS, and we as a Government don't think it's acceptable, we don't want families to be waiting years and years for the treatment they need.'
The appropriate thing to do, I believe, is to avoid unpleasant decisions.