Today’s decision by the Congress of Deputies to reject the government decree has created a legal vacuum that will hit HR departments and the payroll (nóminas) of millions of workers.
What happened?
The government attempted to pass a package of measures in a single decree, including higher Social Security (Seguridad Social) contributions for 2026. The decree was rejected. This means there are no longer legal grounds to withhold the increased contributions.
Which contributions are now “in limbo”?
Companies are in a panic. They have already configured their payroll software for the new 2026 rates, and now must urgently “roll everything back” and calculate salaries according to the 2025 rules.
Most likely, the government will pass a new law in the coming weeks to restore these contributions. This will create an “administrative loop”:
✅ First, salaries will have to be calculated using the old (lower) rates.
✅ Once the law is eventually approved, accounting departments will need to recalculate and withhold the underpaid amounts retroactively.
What happened?
The government attempted to pass a package of measures in a single decree, including higher Social Security (Seguridad Social) contributions for 2026. The decree was rejected. This means there are no longer legal grounds to withhold the increased contributions.
Which contributions are now “in limbo”?
- The increased MEI (Intergenerational Equity Mechanism) — the “pensions” surcharge deducted from every salary.
- The increase in the maximum contribution bases (bases máximas).
- The solidarity contribution (cuota de solidaridad) — an additional levy on high salaries.
Companies are in a panic. They have already configured their payroll software for the new 2026 rates, and now must urgently “roll everything back” and calculate salaries according to the 2025 rules.
Most likely, the government will pass a new law in the coming weeks to restore these contributions. This will create an “administrative loop”:
✅ First, salaries will have to be calculated using the old (lower) rates.
✅ Once the law is eventually approved, accounting departments will need to recalculate and withhold the underpaid amounts retroactively.
