Your first payroll of the year 2025 It can be annoying for you. And this January you will notice that you earn a little less due to some changes that will be implemented starting in the first month of the year.
The key to everything is Intergenerational Equity Mechanism (MEI)an additional contribution on the gross salary, which is shared between the company and the worker, and which came into force on January 1, 2023 as one of the new features of the latest pension reform.
The objective of the MEI is to reinforce Social Security income to face the retirements of the baby boom between 2032 and 2050. This new quota has replaced the old Sustainability factor of the 2013 pension system reform and It is applied in the section on common contingencies.
The MEI started in 2023 applying an additional contribution of 0.6% on the contribution base distributed between the worker (0.1%) and the company (0.5%).
In 2024 the MEI increased the percentage to 0.7% and next year it will increase to 0.8%. After this increase of 0.1 points, the worker will assume an additional contribution of 0.13% and the company the remaining 0.67%. Obviously, this increase will have an effect on workers’ payroll: In 2025 they will charge less.
Furthermore, those who have higher salaries they will notice it even more. The reason is the lifting of the maximum contribution bases, also introduced by the pension reform. In 2024, the maximum contribution base will increase the average inflation plus an additional 1.2 points.
The objective is that the increase in the MEI reach 1.2% in 2029 and that it will remain active until 2050. This means that each year the workers’ payroll will be lower until 2029.
Progression per year
- 2024: 0.70 percentage points, of which 0.58 will correspond to the company and 0.12 to the worker.
- 2025: 0.80 percentage points, of which 0.67 will correspond to the company and 0.13 to the worker.
- 2026: 0.90 percentage points, of which 0.75 will correspond to the company and 0.15 to the worker.
- 2027: 1 percentage point, of which 0.83 will correspond to the company and 0.17 to the worker.
- 2028: 1.10 percentage points, of which 0.92 will correspond to the company and 0.18 to the worker.
- 2029: 1.2 percentage points, of which 1.00 will correspond to the company and 0.2 to the worker.
In the case of the self-employedthese have no way of distributing the rise and have to face it all themselves.