Social Security in the Spanish State General Budget Law of 2013 and in other legislative and regulatory provisions approved at the end of 2012

Abstract

In line with previous years, the 2013 General Budget Act in Spain (Law 17/2012, of December 27th) does not only address the Social Security layouts for the year but also the estimated revenue to provide economical and financial coverage. It regulates the way of determining contributions in 2013 alongside with the updating of pensions and other benefits and it also incorporates a number of provisions into the legal system that affect the different areas of the Social Security, such as the scope, collection, protective action or management of the system.

Likewise, with effects from January 1st 2013, most of the provisions contained in the Law 27/2011, of August 1st, about the adequacy, upgrading and adjustment of the Social Security system enter into force, which requires government regulations to provide for its implementation, and that is the purpose of Royal Decree 1716/2012, of December 28th. An exception of the entry into force of the provisions of the Law 27/2011 is those measures related to early and partial retirement, which have been suspended by Royal Decree-law 29/2012, of December 28th. This legal disposition has also modified the regulation of the domestic workers system and that of agricultural workers, both employees and self-employed.

Finally, by the end of December and as part of a package to tackle Social Security fraud and prevent the abuse of the protection systems, two other legal provisions have been passed which affect the legal system of the Social Security in Spain, namely the Organic Law 7/2012, modifying the legal definition of crimes against the Social Security and tax fraud, to reinforce transparency and prevent fraud; and the Law 13/2012, of December 6th, to curb illegal employment and Social Security fraud.

This paper analyses all these issues.