Starting from the beginning of 2023, Ministry of Participation, Social Security and Migration Added a significant change to workers’ payroll new tax It aims to stabilize retirement spending, and everything indicates that this will continue in 2024.
This new measure is included in the pension reform that the Government has approved in 2022 and will be applied to the payroll of all employees. About Intergenerational Equality Mechanism (MEI) In Spain, a tax will be applied to the payrolls of employees enrolled in Social Security to continue paying retirees’ pensions.
As announced in the Official State Gazette (BOE), the MEI percentage applied to payrolls in 2023 was 0.6%, but This figure will increase by 2050. This new measure was created to cover the pensions of the so-called generation. baby boomMany workers will retire in the coming years.
MEI rises in 2024
As you can see in the table below, next year’s MEI and those that will come into force 0.7% as of January 1, 2024 It is included in the payroll of all employees, regardless of their age and salary. This percentage is distributed as follows: 0.58% to be paid by the company and 0.12% to be paid by the employee.
The percentages will increase over the next seven years, through 2030. will remain stable for the next 20 years. A similar situation occurs with the percentage to be borne by each party, since from this date onwards 0.6% will be distributed by the company and 0.6% by the worker.
It should not be forgotten that this rate is also protected for workers registered with SSI. On the other hand, self-employmentwill also have to face the Intergenerational Equality Mechanism with a quota remaining constant, and Calculated on 5 Euros per month.
Source: Informacion
James Sean is a writer for “Social Bites”. He covers a wide range of topics, bringing the latest news and developments to his readers. With a keen sense of what’s important and a passion for writing, James delivers unique and insightful articles that keep his readers informed and engaged.