The Intergenerational Equity Mechanism (MEI) will rise to 0.9% in 2026, an increase of 0.1 points from 2025, to strengthen Spain's pension system. Workers earning over 61,214 euros annually will contribute up to 92 euros per year, while the average will rise by about 5 euros. This surcharge, mostly borne by employers, addresses demographic pressures on pensions.
Spain's pension system faces challenges from population aging and rising spending, which hit 189 billion euros in 2025, up 6.2% from the previous year. To counter this, the MEI, introduced in 2023 through an agreement between the Ministry of Inclusion, Social Security and Migration with unions UGT and CCOO—rejected by business groups CEOE and Cepyme—will increase in 2026.
The rate will rise from 0.8% to 0.9%, with 0.75 points borne by employers and 0.15 by workers. The maximum contribution base will go from 58,914 euros in 2025 to 61,214.4 euros in 2026. Thus, only 8% of workers with high earnings will contribute the maximum: 91.82 euros annually via MEI, 15.23 euros more than in 2025, or 1.27 euros monthly.
For the average base of 2,255 euros monthly (27,060 euros annually), the MEI will rise from 35.18 euros to 40.59 euros per year, an increase of 5.41 euros or 45 cents per paycheck. Employers will feel a greater impact on high salaries, rising from 394.7 euros to 459 euros annually per worker. By 2029, the MEI will reach 1.2%, with 1 point for companies and 0.2 for employees.
The Ministry defends the mechanism: “The Intergenerational Equity Mechanism addresses the impact of demographic changes in the coming decades, ensuring the sustainability of the pension system while guaranteeing intergenerational equity and the adequacy of current and future pensions.” However, business associations criticize the rise in labor costs, amid projections that Spain could devote 16.8% of its GDP to pensions by 2050, per the European Commission.
Additionally, from 2026, a solidarity contribution applies to high earnings, with rates from 1.15% to 1.46%, split between employer and worker.
