Last year, the Government approved the Intergenerational Equity Mechanism (MEI), a tax on the payrolls of all workers that aims to fill the pension pot. This 2024, the percentage that employees and companies must contribute increases slightly, and this will be noted in the payroll.
The measure, which aims to strengthen the Social Security reserve fund and guarantee balance between generations, came into force in 2023, but provides for progressive increases each year until 2030.
The tax was launched with a rate of 0.60% based on contributions for common contingencies, of which 0.50 corresponds to the company and 0.10 is assumed by the worker.
This 2024, the MEI increases to 0.70%. Companies will pay 0.58% and employees, the remaining 0.12%. Therefore, the increase for the worker is only 0.02%. Taking the example of a payroll of 1,500 euros, this means a tax increase of about 30 cents. The cost for the company would go from 7.5 to 8.7 euros.
It is an almost imperceptible reduction in salary, but if you are used to entering the same figure each month, you will notice this change in the payroll.
The tax affects all employees and even the self-employed. Exempt are workers who contribute exclusively for temporary disability or solidarity contributions, groups who only contribute for professional contingencies, students new to the Ministry of Defense, or participants in training programs and non-work practices.
Employees do not have to do anything to update the contribution to the MEI, but it is the company that is obliged to apply it to payrolls.
