Spain's 2013 state budget: spending, pay, pensions and taxes

Automatic summary, not yet reviewed

1. The state budget for 2013 is approved, with spending credits of 345,445,693.91 thousand euros, funded by expected revenues and new borrowing.
2. Public sector pay is frozen: salaries cannot rise above the levels in force on December 31, 2012. Public employees will receive two extra payments, in June and December.
3. In 2013 no new staff may be hired in the public sector, except for exceptions with a replacement rate of up to 10% in areas such as education, health, security and justice. Temporary and interim hiring is also restricted.
4. Social Security and Clases PasivasClases Pasivas The pension scheme for civil servants who joined before 1985, managed by the state. pensions rise by 1% in 2013, with maximum benefit limits and minimum amounts set for each type of pension.
5. The state may increase its debt by up to 71,020,759.50 thousand euros and guarantee operations for a maximum of 161,043,560 thousand euros, with reserves for restructured banks and the European Financial Stability Facility.
6. Taxes and fees are updated: the adjustment coefficients for personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. and corporate tax rise by 1%, and fixed-amount state fees are raised using the 1.01 coefficient.
7. The law sets Social Security contribution bases and rates for 2013, with a maximum contribution base of 3,425.70 euros per month and a 28.30% rate for common contingencies in the General Scheme.
8. Residents of the Canary Islands, the Balearic Islands, Ceuta and Melilla get 50% discounts on boat and plane tickets to mainland Spain, and 25% on inter-island boat trips.

Who it affects

• Public employees: Their pay is frozen in 2013 and there are restrictions on hiring and promotion.
• Retirees and pensioners: Their pensions rise by 1%, with maximum limits and minimum amounts set by the law.
• Workers and companies: Social Security contribution bases and rates change, along with some taxes and fees.
• Residents of the Canary Islands, the Balearic Islands, Ceuta and Melilla: They receive 50% or 25% discounts on sea and air transport tickets.
• Municipalities and Autonomous Communities: The law sets their funding rules, settlements and limits on borrowing or receiving state funds.

Words worth knowing

Clases Pasivas

The pension scheme for civil servants who joined before 1985, managed by the state.

Tasa de reposición (replacement rate)

The maximum percentage of positions that can be filled when someone retires or leaves a job.

Saldo vivo de la Deuda (outstanding debt balance)

The total amount the state owes at a given moment, not counting what it has already repaid.

Aval (state guarantee)

A guarantee by which the state promises to pay a debt if the borrower cannot.

Coeficiente de actualización (adjustment coefficient)

A number applied to the purchase price of a property to adjust it for inflation before calculating the tax.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries