[Spain] Social Security contributions rising in 2026

In Spain, changes to the Social Security system will come into effect from January 1, 2026. As part of a broader pension reform, contributions are set to rise substantially, directly impacting the pay packets of millions of employees and increasing businesses’ labour costs, Majorca Daily Bulletin reports.

The primary aim of the reform is to strengthen the Reserve Fund in response to the demographic challenge of an ageing population, ensuring the long-term viability of future pensions.

Pending changes reportedly include three key measures: a gradual increase in the Intergenerational Equity Mechanism (IEM), the introduction and escalation of a solidarity contribution for higher earners, and the revaluation of the maximum contribution base. 

These measures will seek higher contributions from individuals with larger incomes, to address the growing financial demands of a population which is living longer and having fewer children. They represent a long-term strategy to secure the nation’s pension system.

Source: Majorca Daily Bulletin

In Spain, changes to the Social Security system will come into effect from January 1, 2026. As part of a broader pension reform, contributions are set to rise substantially, directly impacting the pay packets of millions of employees and increasing businesses’ labour costs, Majorca Daily Bulletin reports.

The primary aim of the reform is to strengthen the Reserve Fund in response to the demographic challenge of an ageing population, ensuring the long-term viability of future pensions.

Pending changes reportedly include three key measures: a gradual increase in the Intergenerational Equity Mechanism (IEM), the introduction and escalation of a solidarity contribution for higher earners, and the revaluation of the maximum contribution base. 

These measures will seek higher contributions from individuals with larger incomes, to address the growing financial demands of a population which is living longer and having fewer children. They represent a long-term strategy to secure the nation’s pension system.

Source: Majorca Daily Bulletin