In 2024, Social Security contributions will increase due to the rise in the MEI percentage.
Labour management
The Intergenerational Equity Mechanism (MEI), which came into effect in 2023, will increase its interest rate in 2024 from 0.60% in 2023 to 0.70%, and so on at a rate of 0.10% each year.
The Intergenerational Equity Mechanism is an additional contribution that was created in 2023 to strengthen the Social Security pension system. This percentage is applied to the contribution base for common contingencies, but is not used for any benefits.
In fact, this contribution has a specific purpose. In other words, all the money collected - and the returns it generates - must be allocated to the Social Security Pension Reserve Fund to cover any possible deviation in the level of expenditure. In short, the MEI aims to distribute the cost of pensions among different generations of workers.
| Year | % Employer | % Worker | % Total |
|---|---|---|---|
| 2023 | 0,50 | 0,10 | 0,60 |
| 2024 | 0,58 | 0,12 | 0,70 |
| 2025 | 0,67 | 0,13 | 0,80 |
| 2026 | 0,75 | 0,15 | 0,90 |
| 2027 | 0,83 | 0,17 | 1,00 |
| 2028 | 0,92 | 0,18 | 1,10 |
| 2029 | 1,00 | 0,20 | 1,20 |
The Intergenerational Equity Mechanism is paid for by companies, employees and self-employed workers.
Furthermore, no reductions or rebates may be applied to this contribution.
Where can we see this amount on our payslip? As it is a deduction, we can see it in the ‘deductions’ section, which shows the contributions made by the worker in respect of Social Security contributions. This item is not always broken down in the “deductions” section; it may be included in the sum of the ‘common contingencies’ percentage.
