The changes to tax and pension reforms sparked violent protests outside parliament.
On the streets of the Greek capital, Athens, outside the national parliament, violent clashes break out between demonstrators and police.
Protesters hurl firebombs and other projectiles at police, while officers respond with tear gas.
Smoke also fills the air as small groups of protesters set bins alight.
Thousands of other protesters take a peaceful stand.
One of them is Marinetta Gounari, a member of the Athens Lawyer's Association.
"What they have succeeded in doing is make us lose our dignity, our work and to find ourselves in the worst possible position a working person can find themselves in. We will continue protesting undeterred. They will not stop us, not even today when they vote for this bill."
Another protester speaks out against what he calls a genocide, brought on by austerity.
"This last bill that the government has presented suddenly and immediately following the Easter holiday -- and everything that it's trying to hide -- constitutes a genocide. We believe that if this is implemented, which we believe it won't be, the Greek people will suffer greatly."
Inside parliament, politicians were debating a controversial austerity bill.
Lowering its annual pension bill, one of the most expensive in the eurozone, is a condition for Athens to qualify for a fresh instalment of the latest international bailout, worth up to AU$132 billion, agreed a year ago with its European Union partners.
The measures aim to ensure the country will attain savings to meet an agreed 3.5 per cent budget surplus target before interest payments in 2018, helping it to regain bond market access and render its debt load sustainable.
The bill, introduced as part of requirements debt-ridden Greece country must meet under its third international bailout, is set to dramatically increase social security and pension contributions and raise taxes for most people.
The bill was approved by the 153 politicians of the ruling Syriza and Independent Greeks government coalition.
All opposition parties in the 300-member Parliament voted against it.
The leader of the socialist Pasok party, Fofi Gennimata, said those behind the "yes" vote had reneged on promises made to Greeks five years ago.
"This bill is not in any way a radical reform but the total deconstruction of the pension system, and responsible for this are those who promised everything to everyone during the "indignants'" protests at squares and now, justifiably, dare not walk out of their offices."
Greek workers say the increases will decimate their incomes, already hurt by six years of crippling austerity, and have staged a series of strikes.
Dimitris Koutsoubas is the leader of the Greek Communist party.
"The Greek people will not tolerate nor accept this unpopular set of measures. They will show their true power and then you, and those who voted along with you the third bailout, will not know where to hide."
The changes will be assessed by Eurozone finance ministers meeting in Brussels on Monday.
