New tax for working people
The coming year will begin with many new developments at the work level and that affect both self-employed people (self-employed) and salaried workers. And in addition to the new self-employed quotas per section, we are going to have a new tax for working people.
He arrives Intergenerational Equity Mechanism (MEI) in order to preserve the balance between generations and strengthen the sustainability of the Social Security system in the long term. In this way, the Government of Spain intends to fill the piggy bank and face the payment guarantees of the pensions between the years 2032 and 2050 (those known as “baby boomers”).
With the aging of the population at very high levels, the current unemployment, the imminent retirement of the baby boom generation and the pension reserve fund is practically empty, the Government foresees the arrival of very difficult times for pensions.
In December 2021 was when was published in the BOE approval of the application of the MEI within the pension reform of the Minister of Social Security and that will begin to be applied from January 2023.
What does this new tax consist of?
This new tax for working people It will be assumed by all each professional regardless of their income. That is, the percentage of the salary will be the same for everyone.
The application of the MEI will mean an increase in 0,6% in the social contributions you pay each worker, regardless of their salary level. Of this 0.6%, The worker will assume 0.1% and the company the remaining 0.5%. This increase in the contribution will weigh on the workers' payroll, but also on the self-employed quota. In the case of self-employed businesses, they must assume this increase of 0.6% themselves and the unions estimate that the increase will be about 5 euros on average per month.
It is estimated that more than 20 million professionals
employees in the Social Security those who will see how in their payroll This new quote appears. According to government sources, the aim is to collect around 22,000 million euros.
This New tax for working people will be assumed by the current working people Thinking about your future pensions, in no case by current pensioners, who today have their pensions insured.
What do you think of this measure? Do you think it is the solution for the sustainability of pensions in the future?
If you are interested in training and developing professionally in the field of training and in the field of human resources, you can find out about our Master in HR: People Management, Talent Development and Labor Management.
