And he suggested some colleagues who do not agree with his approach on Brexit were trying to undermine him.
Minister Liam Fox said he "deplored" the briefing by some of his colleagues.
The international trade secretary told the BBC's Sunday Politics they should "be very quiet" and "stick to their own departmental duties", adding: "Our backbenchers are furious and the only people smiling at this will be in Berlin and Paris."
Since the general election, cabinet splits have surfaced over the issue of the 1% cap on public sector pay rises, with some ministers pressing for it to be lifted.
Labour is promising £4bn which it says would offer a pay rise to workers.
On the BBC's Andrew Marr Show, Mr Hammond defended his stance, saying public sector pay had "raced ahead" of the private sector after the economic crash in 2008.
While in terms of salary alone, that gap had now closed, he continued, when "very generous" pension contributions were taken into account, the 10% disparity between public and private salaries was a "simple fact".