Whether you are self-employed or an employee, you have to pay a fee. New tax from 2023. about it Intergenerational Equality Mechanism (MEI)a new tax from which they will have to pay January 1, 2023all registered workers Social Security and that’s a salary percentage. A measure affecting more than 20 million Spanish citizens.
The Intergenerational Equality Mechanism replaces the old Sustainability Factor and is contingent and temporary. this tax aims to fill retirement piggy bank through the even distribution of effort to finance pensions between generations.
With Rapidly increasing levels of aging population, current unemployment, near baby boomer retirement and the pension reserve fund is practically empty, the Government Very difficult times for retirement.
Therefore, among other measures that include pension reformmade from MEI, published BOE last December. This mechanism acts on income (contributions), not benefits (expenses) how the repealed Sustainability Factor works. Unlike the latter, which calculates benefits based on increased life expectancy, The Intergenerational Equality Mechanism will only be activated when necessary and on a temporary basis.
It will not affect future MEI pensions in January 2023therefore, their amounts will not be reduced, unlike the abolished Sustainability Factor. about a new tax to be borne by all workers whatever your income. Well, The salary percentage will be the same for everyone.
This new tax will be implemented as a new contribution concept, Thus, people enrolled in Social Security they will see their payrolls decrease by 0.6%. This additional fee is in the offer It will weigh on workers’ payroll as well as on the self-employed quota.
In this way, the Government wants to raise enough money to cover the cost of future pensions. Specifically, it is aimed to collect around 22,000 million euros by 2032, when the implementation of this new tax is expected to end.
For the payment of this new tax, which will come into effect on January 1, 2023, 0.6% of the worker’s salary will be deducted. Employers will pay 0.5% of this amount and workers will pay the remaining 0.1%. In the case of the self-employed, the unions calculate that the average pay will be around 5 euros per month.
If we talk about numbers, for example, for workers with a gross salary of 2,000 euros, the new tax will be 12 euros per month, of which 10 euros will be paid by the company and 2 euros by the employee.
Source: Informacion
Christina Moncayo is a contributing writer for “Social Bites”. Her focus is on the gaming industry and she provides in-depth coverage of the latest news and trends in the world of gaming.