The reforms, which received broad support in the parliament, would divide up asylum application among member states based on their populations and economies.
It also includes a three-year transition period where member states with less experience accepting asylum seekers would start off with a lower share of the responsibility before gradually taking on more. And member states who refuse to accept applicants could lose access to certain EU funds.
Currently, the EU uses what's known as the Dublin system, which requires asylum applications to be handled by the country the asylum seeker first sets foot in.
The parliament's proposal still needs the green light from other EU institutions before becoming law.