This will affect your salary
The MEI (Intergenerational Equity Mechanism) is a measure that the Government implemented two years ago with the objective of make the pension system sustainable in the futureas many employees born between 1958 and 1978 are expected to retire soon. With this new solidarity contribution mechanism, it is expected that the economic risk will decrease and that the withdrawal will affect the country as little as possible.
However, the MEI was not entirely well received in 2023 because this tax does notor has an impact on the pension that the worker will have in the future who is paying it, but this percentage of the salary is allocated to the Social Security reserve to be able to finance benefits without adhering to the individual contribution base.
How much are payrolls going to be reduced?
This figure that is deducted from the payroll is not an exact amount, It is a percentage whose contribution varies depending on the salary of the worker. In addition, employees do not have to bear it completely and companies are obliged to pay a greater part of this tax. For example, for 2026 the MEI quota is 0.9%, but 0.75% corresponds to the company and 0.15% to the worker.
Although with the new year a higher percentage will be required, workers’ payroll will be little affected. In this way, a worker who has a monthly salary of 2,000 euros will see his or her payroll reduced by around two euros compared to 2025. According to Royal Decree-Law 2/2023, the MEI will be applied in this way for years:
- 2023: 0.6% (0.5% of the company and 0.1% of the worker).
- 2024: 0.7% (0.58% of the company and 0.12% of the worker).
- 2025: 0.8% (0.67% of the company and 0.13% of the worker).
- 2026: 0.9% (0.75% of the company and 0.15% of the worker).
- 2027: 1% (0.83% of the company and 0.17% of the worker).
- 2028: 1.10% (0.92% of the company and 0.18% of the worker).
- 2029: 1.2% (1% of the company and 0.20% of the worker).
