Spanish workers earning over €59,094 per year will see a new 1% Social Security solidarity quota deducted from their payrolls, starting this February.
The measure, approved by the Spanish government last March, is designed to help secure retirement funding ahead of the anticipated mass retirement of the baby boomer generation. To achieve this, employees earning over €4,900 per month (based on 12 payrolls) will contribute a 1% quota on any income exceeding the €59,094 threshold.
Initially, the quota was set to take effect in January, but Congress rejected the omnibus decree, delaying its implementation. It was eventually approved in mid-February. However, some companies had already incorporated the quota into their January payrolls in advance. As a result, the February payroll will retroactively include the January quota as well.
The contribution rate varies based on income: workers will be charged between 0.92%, 1%, and 1.17%, while employers must cover five times the employee’s contribution. For instance, a worker earning approximately €70,000 per year would see a deduction of €1.50, while their employer would contribute €7.35.
The quota will gradually increase until 2045, reaching rates of 5.5%, 6%, and 7%. Authorities estimate that this measure will generate around €400 million in revenue in 2025.
