Every extra one per cent on a 2.45 per cent pay offer to local government staff would add £1.3m to West Sussex County Council's pay bill, and fall on council tax payers, the authority was told.
The Unison and Unite unions have rejected the offer. They are claiming six per cent, and negotiations are on-going.
Cllr Louise Goldsmith, county cabinet member for finance and resources, said there would be an impact on tax.
However, a new statement from the employers and unions had indicated new negotiations were under way.
Cllr Chris Mullins asked if Cllr Goldsmith would be willing to show 'some empathy' for staff in this 'very justified claim'.
"We know the cost of fuel, food and housing is increasing, and in real terms 2.45 per cent represents a cut in the wages of some of the lowest-paid staff in the UK," he said.
Cllr Goldsmith said there was empathy for everyone, including pensioners and people on the minimum wage.
"The cost of living has gone up considerably, and I have personal concern about inflationary measures," she added.
"I remember inflation rates of 18 or 25 per cent, and I don't think anyone wants to go back to them.
"We are aware staff do a tremendous job right across the board, and we are working with the fundamental service review to provide better standards of working."
They would now be looking for the outcome of the negotiations.
Her main concern was not only for employees, but about the inflationary impact there could be.
"More than one-third of our residents are pensioners on fixed incomes, who are equally affected," she said.
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The full article contains 354 words and appears in OS-Chichester Observer newspaper.
