Intergenerational Equity Mechanism (IEM)
- 02 January 2023
- Business Consultancy
The new tax applicable as of 01 January 2023
Law 21/2021, published on 28 December 2021, amends the public pension system and introduces the intergenerational equity mechanism, a tax aimed at distributing the cost of pensions among the different generations of workers, by 2023. The measure is expected to last until 2032.
This new tax will be applied as a new contribution concept that will weigh on workers' paychecks, but also the self-employed contribution.
General regime:
- Of this amount, employers will pay 0.5%.
- Workers will pay the remaining 0.1%.
Self-employed regime:
- Trade unions estimate that the average payment for the self-employed will be around 5 euros per month, with the contribution rate rising from 28.3% to 28.9% by 2023.
According to Law 31/2022, of 23 December, on the General State Budget, this measure will come into force and be applied with effect from 1 January 2023.
If you have any doubts or require further information, you can contact our Labour Department by calling:
933 03 060 (Barcelona)
972 505 100 (Figueres)
972 940 940 (Girona)
Or by sending an e-mail to: laboral@cinc.es
