Salaries will remain frozen at least until the next quarter, when the firm will revisit the compensation structure, according to the report.
The plan will apply to the more than 5,000 people in the securities unit, including those who have been promoted, Bloomberg reports.
Earlier this month, UBS announced plans to move about 2,500 jobs to low-cost locations such as Poland, India, China, and Tennessee over the next year.
Credit Suisse last week said it would cut bonuses by 11% across the board and 36% in the global markets division after reporting its first annual loss since the financial crisis.
And things are looking equally rough at Deutsche Bank, which recently reported a $7.4 billion loss for 2015. Its stock has plummeted, and on Tuesday CEO John Cryan released a statement in which he told employees that things were "absolutely rock-solid."
Credit Suisse CEO Tidjane Thiam has previously said investment banks' pay model "does not work" because of the cyclical nature of the industry.
In October, Deutsche Bank CEO John Cryan pointed to the "significant challenges" of his firm's "inflexible compensation culture." Also that month, Barclays chairman John McFarlane argued in a speech at the annual conference of the British Bankers' Association that bankers earned too much.
Business Insider has reached out to UBS for comment.