2023-11-24 20:15:53
Since January 1, the percentage subtracted from workers’ payrolls has increased to finance the pension system, the intergenerational equity mechanism (MEI)which also affects the self-employed via contributions. This tax will reach 0.7% of the gross salary in 2024 and the Government hopes to raise 3,702 million euros for the Social Security Reserve Fund, a part of the around 22,000 million euros that it estimates it will collect with this tax until 2032.
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The Intergenerational Equity Mechanism replaced the old Sustainability Factor on January 1, 2023 and is contingent and temporary. His objective, to return to fill the pension piggy bank through balanced distribution between generations of the effort to finance pensions.
The percentage of the MEI that is subtracted from workers’ payrolls will increase year after year and in 2024, 0.58% is paid by the company and the remaining 0.12% by the employee, when we refer to employees. Upon reaching 2030, the percentage of the MEI will stabilize until the year 2050. During those 20 years, the percentage that the company and worker will contribute to the tax will vary: established at 1.2% of the payroll, 0.6% of that amount will be will be covered by the employer and the other 0.6% by the worker.
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