Additional Solidarity Quota: an increase in social security costs for the highest salaries from 2025 onwards
Royal Decree-Law 2/2023 of 16 March on urgent measures to increase pensioners‘ rights, reduce the gender gap and establish a new framework for the sustainability of the public pension system introduced the so-called "Additional Solidarity Quota" (cuota adicional de solidaridad), which will come into force on 1 January 2025.
1. What is the ASQ?
The ASQ will only tax the part of the remuneration that exceeds the maximum social security contribution base (set for 2024 at 4,720.50 euros gross per month) for employees.This new contribution, unlike others, is not applied linearly to the excess of remuneration at a uniform percentage. On the contrary, there are three different contribution brackets depending on the wage level that exceeds the maximum contribution base. In addition, the percentage levied on each bracket will be progressively increased each year until 2045.
2. What is the purpose of the ASQ?
At present, the Spanish Social Security suffers from a serious financial imbalance due to the fact that the income from social security contributions is not sufficient to cope with the growing number of pensioners. To solve this deficit, the Intergenerational Equity Mechanism for Pensions (mecanismo de solidaridad intergeneracional) was set up in 2023 and by 2025 it will amount to 0.80% of the contribution base and will continue to rise until 2029, when it will reach 1.2%.
The ASQ goes a step further and establishes that employees with higher incomes will contribute more.
3. What will be the ASQ in 2025?
| Bracket | Excess remuneration (from maximum contribution base for 2024) | ASQ | Estimation of the maximum employer's ASQ contribution |
| Bracket 1 | From 4,720.50 euros and up to 5,192.55 euros (included) | 0.92% (of which 0.76% to be borne by the company) | 39.46 euros |
| Bracket 2 | From 5,192.55 euros and up to 7,080.75 euros (included) | 1% (of which 0.83% to be borne by the company) | 58.77 euros |
| Bracket 3 | From 7,080.75 euros | 1.7% (of which 1.41% to be borne by the company) | Depends on the salary level |
4. How will it evolve up to 2045?
| Year | Bracket 1 (Excess up to 10%) | Bracket 2 (Excess between 10% and 50%) | Bracket 3 (Excess over 50%) |
| 2026 | 1.15% | 1.25% | 1.46% |
| 2027 | 1.38% | 1.5% | 1.75% |
| 2028 | 1.60% | 1.75% | 2.04% |
| 2029 | 1.83% | 2% | 2. 33% |
| 2030 | 2.06% | 2.25% | 2.63% |
| 2031 | 2.29% | 2.5% | 2.92% |
| 2032 | 2.52% | 2.75% | 3.21% |
| 2033 | 2.75% | 3% | 3.50% |
| 2034 | 2.98% | 3.25% | 3.79% |
| 2035 | 3.21% | 3.5% | 4.08% |
| 2036 | 3.44% | 3.75% | 4.38% |
| 2037 | 3.67% | 4% | 4.67% |
| 2038 | 3.90% | 4.25% | 4.96% |
| 2039 | 4.13% | 4.5% | 5.25% |
| 2040 | 4.35% | 4.75% | 5.54% |
| 2041 | 4.58% | 5% | 5.83% |
| 2042 | 4.81% | 5.25% | 6.13% |
| 2043 | 5.04% | 5.5% | 6.42% |
| 2044 | 5.27% | 5.75% | 6.71% |
| 2045 | 5.50% | 6.00% | 7.00% |
5. How is your payment distributed?
The increase in contribution costs due to the ASQ will be borne by both the employer and the employee in the same proportion in which the contribution rate for common contingencies is distributed, i.e. 83.4% will be borne by the employer and the remaining 16.6% by the employee.
Thus, the social security contribution for the application of the ASQ payable by employers (employers' ASQ) for the following years will be as follows:
| Year | Bracket 1 (Excess up to 10%) | Bracket 2 (Excess between 10% and 50%) | Bracket 3 (Excess over 50%) |
| 2026 | 0.96% | 1.04% | 1.22% |
| 2027 | 1.15% | 1.25% | 1.46% |
| 2028 | 1.33% | 1.46% | 1.70% |
| 2029 | 1.53% | 1.67% | 1.94% |
| 2030 | 1.72% | 1.88% | 2.19% |
| 2031 | 1.91% | 2.09% | 2.44% |
| 2032 | 2.10% | 2.29% | 2.68% |
| 2033 | 2.29% | 2.50% | 2.92% |
| 2034 | 2.49% | 2.71% | 3.16% |
| 2035 | 2.68% | 2.92% | 3.40% |
| 2036 | 2.87% | 3.13% | 3.65% |
| 2037 | 3.06% | 3.34% | 3.89% |
| 2038 | 3.25% | 3.54% | 4.14% |
| 2039 | 3.44% | 3.75% | 4.38% |
| 2040 | 3.63% | 3.96% | 4.62% |
| 2041 | 3.82% | 4.17% | 4.86% |
| 2042 | 4.01% | 4.38% | 5.11% |
| 2043 | 4.20% | 4.59% | 5.35% |
| 2044 | 4.40% | 4.80% | 5.60% |
| 2045 | 4.59% | 5.00% | 5.84% |
6. What measures would it be advisable for the employer to take?
6.1 From a cost point of view
The ASQ will lead to a significant increase in labour costs over the coming decades and will have a relevant impact for those employers whose workforce has a higher percentage of high-skilled workers, as their salaries tend to be higher.
Employers will therefore need to take into account the impact of ASQ on their personnel cost structure and projections. In particular, it will be key when: (i) recruiting staff; and (ii) making annual salary reviews and/or bonus payments (which tend to be an important part of the remuneration package in higher paid positions).
6.2 From a staffing point of view
The increase in social security contributions due to the ASQ will mean that, as of 1 January 2025, those employees whose salaries are not increased will receive a lower net salary than they did in 2024.
Therefore, in order to avoid surprises for the workforce, it is highly recommended that employers make all employees aware of the entry into force of the ASQ and its implications.
