Spain raises employee pension tax to 0.17% of wages starting January 2027
From 1 January 2027 Spanish workers will see their MEI contribution rise from 0.15% to 0.17% of the contribution base, a modest payroll deduction.
Spain’s Intergenerational Equity Mechanism (MEI), a Social Security tax, will see the employee portion rise to 0.17 % of the contribution base beginning 1 January 2027, up from 0.15 % in 2026. The change translates into an extra €0.40 per month for a worker with a €2,000 base, amounting to €4.80 a year, while higher bases see proportionally larger increases. The employer’s contribution will also grow, bringing the combined MEI rate from 0.90 % to 1 % of the base.
Revenues are earmarked for the Social Security Reserve Fund to support future pension liabilities, with further scheduled hikes to 0.18 % in 2028 and 0.20 % in 2029. The increase does not affect the amount of pension each worker receives, and take-home pay may remain unchanged depending on other salary factors. The adjustment is mandated by existing Spanish social security law, not a new tax.
Why it matters
Workers will notice a small, scheduled rise in payroll deductions to help fund Spain's future pension obligations.
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