The coalition government used its majority in parliament to pass its controversial pension reform on Thursday afternoon.

Liberal VVD and Labour MPs voted for the reform, while all the opposition MPs voted against.

The government wants to reduce the amount workers can save tax free for a corporate pension scheme from 2.25% of their gross salary to 1.85%. The government says this will generate €3bn in extra tax.

Guarantees

Opposition parties wanted guarantees from the government that the lower tax-free saving would lead to a fall in pension premiums. That guarantee could not be given because pension premiums are decided per sector.

Pension experts and the Council of State have criticised the plan and government talks with unions and industry leaders ended in deadlock.

Labour party leader Diederik Samsom said he is hopeful the reform will be passed by the upper house or senate where the coalition does not have a majority, reports the Telegraaf.