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    New Pension Contribution to Reduce Spanish Workers' Salaries by Up to 95 Euros Annually

    Madrid, Spain – Thousands of Spanish workers are set to experience a further reduction in their net salaries due to an increase in the Intergenerational Equity Mechanism (MEI) contribution, effective from 2026. This measure, officially approved in the Boletín Oficial del Estado (BOE), could see employees' take-home pay decrease by up to 95 euros annually, depending on their income. The MEI is a percentage contribution levied on all workers, designed to bolster the public pension fund. Currently, workers are already contributing to this mechanism. However, from 2026, the total contribution rate will escalate to 0.90% of the employee's salary. Of this revised percentage, 0.15% will be directly borne by the employee, while the remaining portion will be covered by the employer. "It doesn't matter how much you earn; everyone contributes to this, in greater or lesser amounts," stated Alba, the presenter, in a recent video, aiming to dispel misinformation surrounding the policy. She further elaborated on the tiered increase, noting that the contribution rate will continue to rise incrementally in subsequent years, reaching 1.20% by 2029-2050, with a consistent 1.00% employer contribution. This adjustment is part of broader efforts to ensure the long-term sustainability of the Spanish pension system, a topic that frequently generates public debate and concern.

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