Your payslip will change in January: how much workers in Spain will lose from their salary in 2027

Starting in January 2027, Spanish workers will see a slight deduction from their paychecks as part of a tax to support the country's pension system. This Social Security tax, known as the Intergenerational Equity Mechanism (MEI), will increase from 0.15% to 0.17% of the contribution base for employees. The change, mandated by Spanish social security law, is relatively minor for most workers.

For instance, a person earning €2,000 a month would pay an additional €0.40 per month in 2027 compared to €3 in 2026, resulting in a total MEI contribution of €3.40 in 2027. To determine the specific amount deducted from your salary, you'll need to multiply your employee's contribution base by 0.0017. For example, a worker with a €1,500 monthly contribution base would pay €2.55 in MEI, up from €2.25 in 2026.

While the annual increase in MEI is 0.02%, the employee's share of the tax will increase by 0.02% each year. Employers will contribute significantly more, with the combined MEI rate rising from 0.90% in 2026 to 1% in 2027. The employer's share will still not be deducted from the worker's take-home pay. This tax, which has been in place since 2023, is designed to ensure the long-term sustainability of Spain's Social Security system as a large generation approaches retirement.

The MEI contribution will continue to increase until it reaches 0.20% in 2029, with the combined employer-employee contribution remaining at 1.20% until 2050. The MEI will appear on the pay stub under social security contributions and deductions, often labeled as MEI or Mecanismo de Equidad Intergeneracional. Although the increase may be noticeable, the impact on individual workers' salaries is minimal, and many families are already familiar with budget adjustments.