Starting 1 January 2027, Spain’s Social Security system will raise the Intergenerational Equity Mechanism (MEI) contribution to 1% of the common contingency base, directly affecting payroll deductions for millions of workers and employers. Under the new rates, employees will pay 0.17% and companies 0.83%, information from the official schedule published in the BOE.
For those earning at the maximum contribution base, set at €5,101.20 per month for 2026, the adjustment means a monthly deduction of €8.67 for the worker, or just over €104 per year. The employer’s share will rise to €42.34 per month, bringing the combined MEI contribution to €51.01 monthly. These figures are estimates based on the current maximum base and may change if the ceiling is updated for 2027.
How the MEI Increase Works
In 2026, the MEI stands at 0.90%, split between a 0.75% employer contribution and a 0.15% employee contribution. The 2027 increase continues the phased rise set out in Spain’s pension reform, lifting the total rate by a tenth of a percentage point. The employee’s share grows by two hundredths, with companies bearing most of the increase. The MEI applies whenever retirement contributions are required, including for self-employed workers, who must pay the full 1% themselves.
Impact on Different Salary Levels
The MEI deduction is calculated on the monthly contribution base, not gross salary. With a base of €1,200, for example, the worker will pay €2.04 per month, while the company pays €9.96. At the maximum base, the employee’s monthly deduction reaches €8.67. Over a year, that amounts to €104.06 for the worker and €508 for the employer, assuming the base stays unchanged throughout the year. The MEI is a targeted contribution: it funds the Reserve Fund and does not count toward future pension calculations.
Annual Increase, Not a Sudden Jump
The €104 figure is the total annual MEI contribution for a worker at the maximum base in 2027, not the increase over 2026. That year, the same worker pays about €91.82 annually, putting the year-on-year rise at roughly €12.24. For those with lower bases, the increase is proportionally smaller. A base of €3,000, for instance, results in a €5.10 monthly deduction, or €61.20 per year, an annual increase of €7.20 compared with 2026.
Further Rises Ahead
The MEI will continue to rise: in 2028, the total rate will reach 1.10% (0.92% employer, 0.18% employee), and in 2029 it will peak at 1.20% (1% employer, 0.20% employee). This level will remain in place until 2050 under Spain’s pension reform law. The process is automatic: companies will adjust payroll deductions, and self-employed workers will see the new rate reflected in their contributions. No special application is required.
As the MEI rises, its impact will be most noticeable for high earners and large employers, while the phased approach is intended to spread the cost over several years. Talent24h reports that the measure aims to reinforce the sustainability of Spain’s pension system by gradually increasing the Reserve Fund without sharply raising costs for any single group.
