Members of City Hall have voted to give themselves a pay rise above the rate of inflation.
Councillors voted unanimously in favour of this boost at a time when the authority needs to make millions of pounds in savings and is facing scrutiny over its use of funds.
The increase will see some members claim an additional £550 a year to cover travel and admin costs and compensate for the hours spent in their roles.
The decision was defended in aid of attracting more working-age people into politics, who may have to sacrifice paid work to take up council duties.
The allowances are to recognise the time put in by councillors, who do not receive a salary, in helping their constituents and attending meetings.
While all members receive a basic allowance to help cover costs such as phone usage, postage and printer cartridges, those who have specific roles, such as cabinet members and chairs of committees, receive an additional special allowance.
The allowance rise of 3.3pc was recommended by an independent panel and accepted by councillors at a meeting this week.
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The increase will also apply to special responsibility allowances. Leader of the council, Mike Stonard, will see this element increase from £12,600 to £13,000.
In total, it means he will receive an extra £650 a year for carrying out his duties.
The special allowance for cabinet members and other group leaders will also increase from £6,300 to £6,500.
Paul Kendrick, who has a cabinet role, said: "I am personally a very strong believer in councillors having allowances.
"This modest sum allows for a much more diverse age group which includes those who are not retired."
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Liam Calvert, a Green councillor, added: "We need to attract the very best new councillors who can make complex decisions and represent all the people of Norwich.
"To do their job well councillors must make sacrifices elsewhere - and that means sometimes turning down work."
However, Karen Davis, leader of the independent group, suggested the council should explore a "fairer system" that could base allowances on attendance of meetings and the amount of work undertaken by members.
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