If accepted, council leaders will have their salaries frozen at regional levels between £27,058 and £48,704.
Most councillors’ salaries will remain at £16,234.
The recommendations are among 15 made to the Scottish Government by the Scottish Local Authorities Remuneration Committee.
Committee chairman Ian Livingstone said: “The present economic climate has thrown up many challenges in trying to be fair, whilst being very conscious of the budgetary pressures anticipated by councils over the next couple of years.”
Looking to 2011-12, Mr Livingstone said: “In making our recommendation we considered salary increases currently being offered in both the public and private sectors and concluded that councillors’ salaries should remain at April 2009 levels for the next two years.”
Expenses for staying overnight in London should remain capped at £131 per night and at £110 per night elsewhere in the UK, the report said.
And, when no overnight expenses are claimed, councillors should be allowed to continue to claim at the current rate of £8 for breakfast, £12 for lunch and £25 for dinner.
The report also said local authorities should make financial information on councillors’ websites more transparent.
Island councillors should be able to claim expenses for inter-island travel when carrying out “approved duties” - islanders using their own boat should be able to claim 25p per passenger per nautical mile, when on official business.
The report added: “At a time when ordinary people are facing unemployment and financial uncertainty, and the country generally is facing severe economic constraints in public sector budgets, councillors cannot be immune from the impact of the current economic climate.”
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