Are they going to take 95 euros off my payroll in 2026? This is how the MEI works

“In 2026 the payrolls of Spaniards will be reduced by 95 euros.” That is the information that has been repeated countless times throughout these weeks in various media outlets, however, it is not new news. And it doesn’t affect all portfolios equally either.

The Intergenerational Equity Mechanism (MEI) is an additional contribution that was approved in 2023 with the objective of “increasing the pension pot”, so that the State can meet the retirements of the ‘baby boomers’ between 2032 and 20250. This mechanism, indeed, has been varying over the years and will also do so on January 1, 2026, but this It does not mean that all payrolls will be reduced by 95 euros from this date.

What is the MEI and what changes now?

The Intergenerational Equity Mechanism (MEI) does not affect all workers equally, since Its application depends on the contribution bases of each person. These bases represent the gross salary on which Social Security contributions are calculated, and therefore, determine the exact amount that is deducted as contributions.

In this way, this mechanism is applied proportionally and progressively, which means that those who receive higher salaries—and, therefore, contribute on higher bases— They support a greater discount. The upper limit of this application is set by the maximum contribution base, which in 2025 will be above 4,900 gross euros per month. This implies that Only workers who exceed this amount will see the maximum percentage applied of the MEI on their entire salary.

In 2023, the MEI began with a contribution of 0.6% of the gross salary, distributed between the company (0.5%) and the worker (0.1%). In 2024 it increased to 0.7%, and in 2025 it stands at 0.8%. Starting January 1, 2026, it will rise to 0.9%, following the planned path until reaching 1.2% in 2029.

This means that heUnlike payroll for an average employee it will be just a few euros per monthand not 95 euros as has been reported in some headlines. For example, a worker with a gross salary of 2,000 euros per month will see his payroll reduced by around two more euros compared to 2025 due to the increase in the MEI. Only in very high salaries—greater than 6,000 euros gross—the impact could approach tens of euros, but never the 95 announced.

How much have payrolls been reduced in 2025

How much will payrolls be reduced from now on?

In practice, the effect of the Intergenerational Equity Mechanism (MEI) on payrolls will be very small for most workers. The difference depends on the contribution level, that is, the salary on which Social Security contributions are applied.

For example, whoever contributes for the minimum base, currently located at 1,381.20 euros per month, You will barely notice the change: from January 2026 your salary will be reduced by 28 cents more than this year. To this will be added the part assumed by the company, 10.36 euros per month, so that the total contribution to the Reserve Fund will be 12.43 euros per month.

When the MEI reaches its expected maximum in 2029 (1.2%), That same person will contribute a total of 16.57 euros per month: 13.81 euros from the company (0.92%) and 2.76 euros from the worker (0.2%).

On the other hand, those who contribute for the maximum base, close to 5,000 euros per month, you will notice a somewhat greater difference: the company will contribute about 37 euros, and the employee, 7.36 euros, which represents almost a euro more discount compared to this year.

Finally, A worker with an average contribution base – about 2,276 euros per month – will see a reduction of just 46 cents in their payroll, since your contribution to the MEI will go from 2.96 euros to 3.41 euros per month. Altogether, adding the business part (about 17 euros), the total fee added to the Reserve Fund will be about 20.50 euros per month.