Spain to increase MEI pension contributions in 2027

The Spanish government has confirmed a scheduled increase in the Intergenerational Equity Mechanism (MEI) contributions, set to rise from 0.9% to 1% of the contribution base in 2027. This measure, managed by the Social Security system, is part of a gradual increase planned under the General Law of Social Security to ensure the long-term sustainability of the pension system.

The 1% total contribution will be split between employers and employees, with companies covering 0.83% and workers assuming 0.17%. For a worker with a 2,000 euro monthly base, this represents an additional monthly cost of approximately 40 cents. The mechanism is designed to bolster the Social Security Reserve Fund to address the demographic challenges posed by an aging population and the upcoming retirement of the baby boom generation.

According to the Ministry of Inclusion, Social Security and Migration, the MEI has already generated 10,976 million euros in revenue. The rate is scheduled to continue increasing gradually until 2029, eventually stabilizing at 1.2% from 2030 until 2050.