As expected, MPs have voted in favour of relaxing strict Dutch rules on bonuses for people working in the financial sector, in line with an amendment to the finance ministry budget drawn up by the pending new coalition government.

At present, banks are limited to paying staff bonuses of no more than 20% of their salary, far below limits in other EU countries, where 100% is the norm.

D66, the VVD and CDA want to change the rules, arguing that banks are struggling to recruit sufficient specialised staff, particularly IT experts. The move is “essential for the safety and innovation strength of the financial sector”, the parties say.

The Dutch financial sector has been pushing for years to ease the bonus restrictions introduced after the 2008 financial crisis. Banks and fintech firms argue that the Dutch cap of 20% of fixed pay puts them at a competitive disadvantage.

Under the amendment, the bonus cap would apply only to employees who materially affect a firm’s risk profile. This includes bank boards, senior management and people in certain key positions, as well as employees earning more than €500,000 a year in fixed pay.

A full bonus ban will also remain in place for top-level staff at ABN Amro and ASN for as long as the state retains a stake in those banks.

The Dutch banking association has welcomed the move, saying the current pay rules have long been “constraining” for financial firms. The change would allow banks and fintechs to compete for staff on a level playing field with other companies in Europe, the association said last week.

The measure was supported by the far-right JA21, FVD, Groep Markuszower, BBB and the pensioners’ party 50PLUS.

Left-wing parties said the plan was infuriating and incompatible with coalition proposals to cut healthcare and social security spending.