Dutch financial sector staff bonuses will be limited to 20% of their gross salary from Saturday, when finance minister Jeroen Dijsselbloem’s controversial legislation comes into force, Dutch media report.

The draft law was passed in the lower house of parliament in October and approved by the senate this week.

The law also limits golden handshakes to a year’s salary and offers the option of clawing back bonuses later found to be unjustified, Dijsselbloem said on Friday.

‘The Dutch rules are tougher than the European ones,’ he said. ‘This is a deliberate choice. Excessive bonuses and golden handshakes have no place in this day and age.’

The law does offer exemptions to very specialised staff such as high-level IT operatives and Dijsselbloem has warned the sector not to take advantage of this option, news agency ANP says.

Otherwise, the minister said, he will tighten up the legislation, which is being supervised by the central bank.