The reform of the pension system has brought with it a series of changes in Social Security contributions, especially for employees. Among the most notable changes are the increase in the Intergenerational Equity Mechanism (MEI) and the introduction of a new solidarity fee based on the maximum contribution base.

What is the MEI and how does it affect workers?

The MEI is a mechanism that seeks to ensure the sustainability of the pension system, distributing the burden more equitably between the different generations of workers. With the reform, the MEI has experienced an increase, which implies a greater retention in the payrolls of workers. This new surcharge was applied for the first time in 2023 (0,60%), and will continue to increase until 2029 (1,2%), although the application period will be until 2032, if the objective of collecting between 2.000 and 3.000 million euros has not been achieved, it is likely to be extended until 2050.

In this exercise it amounts to 0,8%, with 0,67% being borne by the company and 0,13% by the employee.

What is the solidarity fee?

This is a new pension contribution regulated by Article 19 of the General Social Security Law. It is an additional contribution, which is applied to incomes that exceed the maximum contribution base. This measure seeks to strengthen the pension system and guarantee adequate benefits for future generations.

How is the solidarity fee calculated?

The solidarity fee is applied gradually, depending on the income bracket that is exceeded, specifically in this year 2025:

  • Between the maximum base and 10% above: a rate of 0,92% applies.
  • Between 10% and 50% above the maximum base: a rate of 1% applies.
  • Starting from 50% above the maximum base: a rate of 1,17% applies.

Impact of these increases on workers:

These new contributions will mean an increase in payroll deductions for workers with higher salaries. Although the objective is to guarantee the sustainability of the pension system, it is important to analyse the possible consequences of these measures on the purchasing power of workers and on the competitiveness of companies.

This increase will be gradual until 2045, when the percentages will be as follows:

  • Between the maximum base and 10% above: a rate of 5,5% applies.
  • Between 10% and 50% above the maximum base: a rate of 6% applies.
  • Starting from 50% above the maximum base: a rate of 7% applies.

What other measures accompany these increases?

It should be noted that from 2024 to 2050 a new rule is being applied to update the maximum contribution base to Social Security, which revalues ​​it with a percentage of 1,20% additional to that determined with the CPI of each year, that is, the maximum contribution base for 2025 increases the average of the CPI of the last 12 months, remaining this year at 2,80% plus 1,20%, resulting in a total of 4%, reaching the amount of €4909,50.

Any worker who receives a salary equal to or greater than this amount will see an increase in social security deductions paid by the worker, and the company's costs will increase in the same proportion.

Conclusions:

The contribution increases approved with the reform of the pension system are intended to guarantee the sustainability of the system and ensure decent pensions for future generations. However, it is essential to evaluate the impact of these measures on workers and companies, as well as to find mechanisms to mitigate their negative effects.

Salvador Mut Ribes

Director of the Labor Department

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