Spain's 2014 state budget: spending, pensions, wages and taxes

Automatic summary, not yet reviewed

1. The General State Budgets for 2014 are approved. Spending credits total 354,626,077.18 thousand euros and are financed with expected revenues and with borrowing.
2. Public sector employee pay will not increase in 2014 compared with the amounts in force on December 31, 2013. Public employees will receive two extra payments, in June and December.
3. In 2014 no new staff may be hired in the public sector, except for a replacement rate of up to 10% in priority sectors such as education, health, security or justice. Those positions must be included in a public employment offer published before the end of the year.
4. Social Security and Clases PasivasClases Pasivas The pension system for Spanish state civil servants, separate from the general Social Security system. pensions rise by 0.25% in 2014 as a general rule. Minimum pension amounts are also set, and non-contributory pensions are fixed at 5,122.60 euros per year.
5. The complementary surcharge on personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. (IRPF) created for 2012 and 2013 is extended, to reduce the public deficit. The Wealth Tax and the non-resident income tax rates are also extended through 2014.
6. Fixed-amount state fees rise by 1% compared with 2013, except for fees created or updated that year. Traffic department fees are rounded up to the next multiple of 10 euro cents.
7. The maximum Social Security contribution base rises by 5% and is set at 3,597.00 euros per month, to improve the system's revenues.
8. The legal interest rate is set at 4% and the late-payment interest rate at 5% during 2014.

Who it affects

• Public employees: Their pay is frozen in 2014 and new hiring is tightly limited, except in priority sectors.
• Pensioners: Their pensions rise only 0.25% in 2014, with minimum amounts set by law.
• IRPF and Wealth Tax taxpayers: An additional IRPF surcharge and the Wealth Tax are extended for them through 2014.
• Workers and companies: Social Security contribution bases and rates change, with a higher maximum contribution base.
• Municipalities and Autonomous Communities: Their shares of state taxes and their funding rules for 2014 are regulated.

Words worth knowing

Clases Pasivas

The pension system for Spanish state civil servants, separate from the general Social Security system.

Tasa de reposición

Replacement rate: a limit that allows filling only part of the positions that become vacant when an employee retires or leaves.

Gravamen complementario

A complementary surcharge: an extra amount added to the IRPF tax bill, created temporarily to reduce the public deficit.

Base de cotización

Contribution base: the amount on which the Social Security contributions paid by employer and worker are calculated.

Interés de demora

Late-payment interest: a surcharge paid when a debt owed to the public treasury is paid late.

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