The final tally in the 300-member parliament was 153 votes in favor of the cuts and 128 opposed, with 18 abstentions.
The cuts have provoked ire among Greeks furious about the effects of multiple rounds of belt-tightening, which have resulted in cuts to pensions and pay. They have seen unemployment soar to more than 25%.
It is Greece's fifth year of recession.
Earlier, protesters in Athens threw Molotov cocktails and police fought back with tear gas outside the parliament as lawmakers prepared to vote.
Strike brings Greece to a standstill
Greece adopts tough austerity plan
Greek protests turn violent
Jobs crisis takes toll on Greece
Can exports save Greece's economy?
The human cost of austerity in Greece
Greek protesters allege police brutality
As many as 70,000 people took part in the demonstration in Athens' central Syntagma Square, outside the parliament building, according to police estimates.