A lot has been said about him lately Sustainability of the public retirement systemQ. It is an increasingly present topic in social and political debate, and it is advisable to be well informed about it so as not to fall into sensational headlines or misinterpret regulatory changes.
A good example of this is the recent news about the so-called Mechanism for Intergenerational Equity (MEI)Which some media outlets presented as a “new price” that will begin to be implemented in 2026, while in reality it has been in effect since 2023, and only this January its values will be updated. But how does it really work?
“In 2026 they will take 95 euros from your salary.”
A TikTok user recently spoke about this topic Your tax bloga tax promoter dedicated to explaining different concepts of economics and taxes. In one of his latest videos, the expert responds to the publication of several newspaper headlines claiming that “in 2026, they will take 95 euros from your salaries” due to the implementation of the MEI.
The expert states that this mechanism is not new, but it is It applies from January 2023 to both employees and the self-employed. Its function, he says, is to allocate an additional portion of social contributions to Social Security: 0.10% of the total salary paid by the worker and an additional 0.50% paid by the company. Both numbers will rise gradually until 2026, when they will be 0.15% and 0.75%, respectively.
In his video the tiktoker shows examples of payrolls in which this quote is reflected within the concept of “MEI”, or is integrated into the common contingencies section. Moreover, it ensures that the real impact is minimal —“A few euros a month”– Even if the percentage increases, it will still be a small amount. “I don’t understand the desire to scare people,” he says.
But what does an MEI really entail?
Aside from the sensational headlines, there is the mechanism of intergenerational equity This price increase is still disguised as a technical measure. It is sold as an enhancement to the Social Security reserve fund – the famous “retirement piggy bank” – but in reality it generates no new rights for the worker, who pays more, but gets nothing in return.
Moreover, even though the worker only sees a few euros reduced, The overall burden on your business is much greater. The increase in company contributions reduces the margin for salary increases and makes hiring more expensive, something that also ends up affecting those who work. If both parties – the company and the employee – are added, the additional cost can amount to several tens of euros per month, a figure much closer to “95 euros” for the owners.