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Spain Raises Pension MEI Levy to 0.9% for 2026, Increasing Payroll Deductions

The phased charge is designed to build the reserve fund as baby‑boom retirements pressure the system.

Overview

  • The Mecanismo de Equidad Intergeneracional rises to 0.9% of the contribution base in 2026, split 0.75% for employers and 0.15% for workers.
  • The maximum contribution base increases to €61,214 for 2026, a change that chiefly affects higher earners and their employers.
  • At a gross salary of €1,500 per month, the MEI implies a €13.5 monthly deduction, with €2.25 borne by the worker and €11.25 by the employer, and the self‑employed paying the full 0.9%.
  • Press calculations indicate those at the top base will contribute roughly €90 more over the year through the higher MEI rate.
  • Regional data show Galicia paid €167.5 million into the MEI from January to November—about €15 million per month—with contributions exceeding €500 million since the mechanism began, as the rate moves on a scheduled path toward 1.2% through 2050.