"Face-covering clothing will in future not be accepted in education and healthcare institutions, government buildings and on public transport," the government said in a statement after the cabinet backed Interior Minister Ronald Plasterk's bill.
The ban does not apply to wearing the burqa on the street, but only "in specific situations where it is essential for people to be seen" or for security reasons, Prime Minister Mark Rutte told journalists after the cabinet meeting.
"The bill does not have any religious background," Rutte said.
A previous bill banning the burqa even on the street and dating from Rutte's last government, which was supported by anti-Islam populist Geert Wilders, will be withdrawn.
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It was agreed that a new bill would be drawn up by the coalition partners of Rutte's Liberal VVD party and the Labour PvdA when they formed their coalition in 2012.
State broadcaster NOS said that between 100 and 500 women in the Netherlands wear the burqa, most of them only occasionally.