Bill 584.

Summary.

The bill establishes that social security contributions arising from accrued or retroactive wage payments be recognized and recorded according to the periods actually worked. It would apply to public institutions, private employers and the Social Security Fund. It defines, among other terms, employer, public official, accrued payments, allocation across periods, reinstatement, back pay and leave not taken when due. Its application would be guided by oversight and accountability, equality, non-regression, progressive realization, retroactive application for the worker’s benefit and transparency. These principles encompass internal controls, audits, error correction, personal data protection and publication of aggregate information.

For accrued or retroactive payments to public officials, the Ministry of Economy and Finance would submit detailed information to the Social Security Fund, broken down by periods worked, within 30 calendar days of payment. The obligation would include reinstatements, back pay, leave not taken when due and payments recognized by administrative or judicial rulings, where the official was not responsible for the separation from office. The Social Security Fund would adapt its systems and establish mechanisms for verification, reconciliation and public consultation to reflect time worked and correct errors. Each public institution making accrued payments would publish corrections and updates to contribution records monthly on its website and on the portal of the National Authority for Transparency and Access to Information (Autoridad Nacional de Transparencia y Acceso a la Información).

Private employers would also submit to the Social Security Fund, within 30 calendar days of payment, a breakdown of periods worked when paying accrued or retroactive wages. The provision covers payments arising from reinstatements, back pay, leave not paid when due and judicial rulings concerning unjustified dismissals; contributions would be recorded by allocation across periods. Failure to comply would give rise to the penalties provided under current labor and social security regulations. The National Authority for Government Innovation, together with each public institution, would establish technical guidelines, controls and audits. Noncompliance with the proposed law would constitute a serious administrative offense, punishable by a written warning, a fine of 500 to 5,000 balboas or disciplinary proceedings, without prejudice to any applicable civil, criminal or financial liability.

The bill would apply to those who begin working after its promulgation and retroactively for up to 20 years before it, solely for the worker’s benefit. The Ministry of Economy and Finance, public institutions and private employers would submit information on accrued payments during that period on their own initiative, without requiring action by the person concerned. The correction would create no new financial obligations for workers or public officials and would not affect acquired rights. The proposed law would take effect upon promulgation and remain in force until the Social Security Fund and the Ministry of Economy and Finance have fully implemented automated systems; a joint resolution with the National Authority for Transparency and Access to Information would certify that condition and be communicated to the National Assembly (Asamblea Nacional). Its provisions concern these public entities, public sector employers, private employers and their workers.