The teams in League One and Two voted to cap player salaries at £2.5millon and £1.5million per annum respectively - in line with a proposal from the EFL.
The decision follows consultation with all clubs in respect of addressing sustainability and wage inflation issues across the EFL which were initiated prior to the suspension of football in March following the COVID-19 outbreak and have continued during the course of the summer.
The EFL clubs have voted in favour of imposing the salary cap for the 2020/21 season onwards. The cap includes spending on basic wages, taxes, bonuses, image rights, expenses and agents' fees and other fees and expenses paid directly or indirectly to all registered players. Payments directly linked to a club’s progression in cup competitions or promotion are excluded from the cap, while any income generated from players going out on loan is deducted from the club’s salary cap calculation.
Julian Tagg, president and director of external affairs at Exeter City FC, said: "The cap is intended to improve sustainability across the leagues and avoid situations occurring where clubs overspend on wages beyond their financial means. As with any situation of this nature there are pros and cons and measures are needed to prevent a situation occurring at another club as it did at Bury, but there are still many questions around the implementation and regulation of the cap to ensure clubs adhere to the new measures."
"We believe this will take some time to implement across the leagues, perhaps as long as two years, and whilst this vote has taken place today, there is a statement from the PFA as to the legality of the salary cap, raising concerns that it has been rushed through."
He added: "There is likely to be extensive coverage in local and national media on this subject. We will ensure we keep our fans updated as to the impact of this decision on Exeter City."
Financial penalties will be payable for clubs who exceed the cap. League One and Two clubs will be continuing discussions around the introduction of additional measures aimed at addressing club financial sustainability.