Executive salaries in the public and semi-public sector are to be restricted to that of a government minister from January 2015, now the senate has voted in favour of controversial new legislation.

The new law means senior public sector staff face a salary ceiling of €178,000, including expenses and pension contributions, broadcaster Nos says.

Senators from the ruling VVD Liberals, D66 and CDA voted against the move, which is included in the current coalition government agreement.

VVD senators argue the current limit of 130% of a minister’s salary has only just been brought in and needs time to take effect.

In addition, the measure means all public sector executives will be treated alike, despite the wide differences in their jobs, VVD senators said. VVD MPs in the lower house in parliament voted in favour of the change.

Divisions

Monday night’s vote marks the second time divisions have emerged this month between the VVD and Labour coalition partners.

Last week, Labour senators voted against government legislation by blocking plans to allow health insurance companies to limit freedom of choice in healthcare to people with budget policies.