Friday, September 29, 2023

Social Security warns of an increase in employee contributions in 2024: this will affect your salary

The Pension reform under the leadership of the Minister for Integration, Social Security and Migration, José Luis Escriva includes various measures with the aim of providing Sustainability of the pension system. These measures include a price increase Workforce.

Many of the Pension reform measures are applied directly to the various contributory pensions of the Spanish system. However, many others also impact employee salaries.

We look ahead to the year 2024 various measures approved in the Pension reform the impact on employees’ contributions to the Social Security. It will also have consequences for companies’ contributions.


First of all, from the year 2024 There will be a gradual price increase maximum contribution bases. So between the year 2024 and 2050 will rise by 1.2 percentage points according to the consumer price index.

From that Social Security make it clear that “the Maximum pensions They will be reassessed every year from 2025 to 2050 using the CPI plus an additional increase of 0.115 cumulative percentages, thus compensating for the increased burden that the increase in contributions will impose on some employees. There will be further increases in the initial pension during this period from 2050 to 2065.

Against this background, the pension reform introduced a number of strengthening measures ensure sustainability in the system. We want to remedy the situation with the measures presented below additional income to the “pension piggy bank” with the aim of securely paying the pensions of the “Baby Boom” generation in the 2030s and 2040s.


In this sense, it is necessary to highlight this Intergenerational Justice Mechanism (MEI). It is a Price specially created by Pension reform to generate higher income for the pension piggy bank.

Currently the MEI price is 0.6 percentage points. Of these 0.6 points, 0.5 goes to the company and 0.1 to the employee. From 2024 it will gradually increase to up to 1.2 points. If 1.2 points are achieved, the company receives 1 contribution point and the employee receives 0.2.

From that Social Security State that “this mechanism replaces the Sustainability factor This led to the 2013 reform and meant a significant reduction in the initial pension, especially for the youngest. This measure is intended to strengthen the pension reserve fund.

Finally, the pension reform was carried out José Luis Escriva is the Solidarity contribution. This is one of the most important innovations in the second part of the pension reform.

In this context, experts are: Social Security point out that “this measure will also have a distributive component and will be implemented gradually, starting with fees from around 1% in 2025 to values ​​of around 6% in 2045. This quota applies to the part of the salary that has not yet been paid in.

Therefore, these new measures, which will come into force from 2024, will have an impact on employees’ salaries and contributions. Workforce for the Social Security, in relation to his work activity.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news