MEI and additional solidarity contribution in 2026: how they are calculated and how they affect payroll
Spain’s public pension system is facing one of its greatest challenges: an ageing population and the upcoming retirement of the baby-boom generation. To help ensure the system’s sustainability, the Intergenerational Equity Mechanism (MEI) entered into force on 1 January 2023 as part of the pension reform.
What is the MEI?
The MEI is an additional Social Security contribution that generally applies to the common contingencies contribution base.
Its purpose is to strengthen the system’s resources in view of the expected increase in pension expenditure in the coming years, contributing to intergenerational balance and the system’s financial sustainability.
Put simply, it is an increase in current contributions designed to anticipate the future rise in the number of pensioners.
Who does it affect?
As a general rule, the MEI applies to those who contribute for common contingencies under schemes where contributions for retirement are mandatory, including:
- Employees, with the cost shared between the company and the employee.
- Employers/companies, as part of their social security contributions.
- Self-employed workers, impacting their monthly payment through the relevant contribution.
Key points about the MEI
It is worth bearing in mind the following:
- It is a mandatory payment linked to contributions for common contingencies.
- Its purpose is to support the sustainability of the system, not to improve individual benefits.
- It does not generate a specific additional entitlement or a direct increase in an individual pension.
- Its design aims to distribute the effort gradually and steadily, avoiding abrupt adjustments when the number of pensioners increases.
How is it calculated?
The MEI is calculated on the common contingencies contribution base:
- For employees, it is shared between the employer and the employee.
- For self-employed workers, it is applied to their contribution base and impacts their monthly payment.
How much is paid?
The MEI rate has been increasing progressively since it entered into force, with the aim of strengthening the system’s resources gradually:
- 2023: 0.60%
- 2024: 0.70%
- 2025: 0.80%
- 2026: 0.90%
- 2027: 1.00%
- 2028: 1.10%
- 2029: 1.20%
- 2030–2050: maintained at 1.20%
In 2026, the total MEI rate is 0.90%, split as follows:
- 0.75% paid by the employer
- 0.15% paid by the employee
This gradual increase is intended to boost system revenues without causing a sudden impact on either wages or employer costs.
Please note that the base on which the MEI will be calculated is the maximum contribution base established for the relevant year; in 2026, the maximum base is €5,101.20.
MEI vs. the additional solidarity contribution: not the same
It is important to distinguish the MEI from the additional solidarity contribution, as they are different and compatible measures.
MEI
- Applies generally to the common contingencies base.
- Affects employees, employers, and self-employed workers.
Additional solidarity contribution
- Applies only when pay exceeds the maximum contribution base (maximum base in 2026: €5,101.20).
- Applies within employment (employees).
- Calculated on the portion of pay exceeding the maximum base, applying different rates by brackets.
- Its progressive implementation has been предусмотрено from 2025.
Main differences
| MEI | Solidarity contribution | |
|---|---|---|
| Who pays it? | Generally, those contributing for common contingencies | Those exceeding the maximum contribution base in employment |
| Calculation base | Common contingencies base | Excess over the maximum base |
| Self-employed? | Yes | No |
| Does it improve the future pension? | No specific additional entitlement | No specific additional entitlement |
| Objective | Strengthen system resources and intergenerational balance | Increase revenues through higher contributions from higher incomes |
Both measures may appear simultaneously on an employee’s payslip: they are not mutually exclusive, as they apply to different bases.
The Intergenerational Equity Mechanism is one of the key pillars of the public pension reform. Although it implies a moderate additional effort, its logic is clear: to anticipate the expected rise in retirement expenditure and to reinforce the system’s resources gradually.
In short, the MEI can be summed up in one simple idea:
An effort today to strengthen tomorrow’s pensions.
If you wish, you may access the podcast recorded by our colleagues, where this topic is addressed in an accessible way. To listen, you can access it here.
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