The First Minister claimed flagship policies including the council tax freeze, free university tuition, free prescriptions for all and free bus travel for over 60s were part of a "social wage".
He said Labour's move to question the fairness and affordability of a string of handouts had turned them into "the new Tory party of Scotland".
Mr Salmond hit out during First Minister's Questions, his first opportunity to tackle Labour head on since his return from watching the Ryder Cup in the US.
He acknowledged that Government budgets were being squeezed but insisted the solution was not to drop universal benefits and services.
He said: "How are the working families of Scotland going to benefit from adopting the policies the Tory party have adopted south of the border?
"To hold society together we have to make sure that certain things are so important, like free education in Scotland, that the people who are lucky enough to be in a position to make the contribution through their taxation can see the benefit socially as well.
"That's how you hold society together.
"The introduction of sweeping means testing across the valuable areas of society will introduce both inefficiency and social division, a point the Labour party recognised and, by and large, stayed faithful to for many years and now is deserting."
In a speech to party activists 10 days ago, Ms Lamont re-positioned Labour to ditch the council tax freeze, free prescriptions and free university tuition for all Scots and EU students.
Other popular commitments, such as free personal care for the elderly and free bus passes will also be reviewed.
Mr Salmond claimed support for Labour would "vanish like snow off a dyke" as a result.
Ms Lamont said the First Minister was "in denial about what is happening in the real Scotland".
Citing cuts to care services, further education colleges and student bursaries, she said elderly and young Scots "see his cuts and don't see his Scotland where everything is free and everything is fantastic".
She added: "I understand why the First Minister thinks everything is free. He's on £130,000 a year, spends over £2000 a week on hospitality and then gets the taxpayer to spend £1200 a year for a TV package to watch the films and sports events that he then gets them to pay for him to attend.
"The First Minister does not live in the real world."
Meanwhile, it emerged that Ed Miliband would not be undertaking a pre-election spending review similar to that instigated by the Scottish Labour leader.
Senior party sources have told The Herald that individual benefits will be looked at but not until the so-called zero-sum spending review by Ed Balls, the Shadow Chancellor.
The sources again stressed that Mr Miliband believed in a mix of benefits between universal ones and means-tested ones. "As a matter of principle, he supports universal benefits. The NHS, for example, is a universal benefit. We will look at individual benefits in the zero-sum review."
Mr Miliband also said for the first time that low-skill immigration was too high.