REPORT

for the period of July 1, 2020 to June 30, 2021

by the Government of the Republic of Estonia on measures implementing the provisions of the European Code of Social Security signed by the Government of Estonia on January 24, 2000.

        I.            The provisions of the Code are connected with the following legal acts in Estonian social security system.

Acts:

1)      Health Insurance Act – parts II, III, VIII;

2)      State Pension Insurance Act – parts V, IX, X;

3)      Labour Market Services and Benefits Act – part IV and XII;

4)      Unemployment Insurance Act – part IV and XII;

5)      Work Ability Allowance Act – part IX;

6)      Family Benefits Act – part VII and XII;

7)      Social Tax Act – parts II, III, V, VI, IX, X; XII;

8)      Administrative Procedure Act – part XII.

The legislation can be accessed in Estonian and English at www.riigiteataja.ee.


PART I - GENERAL PROVISIONS

Article 1

1.                  In this Code:

a. the term “the Committee of Ministers” means the Committee of Ministers of the Council of Europe;

b. the term “the Committee” means the Committee of Experts on Social Security of the Council of Europe or such other committee as the Committee of Ministers may designate to carry out the duties laid down in Article 2, paragraph 3; Article 74, paragraph 4, and Article 78, paragraph 3;

c. the term “Secretary General” means the Secretary General of the Council of Europe;

d. the term “prescribed” means determined by or in virtue of national laws or regulations;

e. the term “residence” means ordinary residence in the territory of the Contracting Party concerned and the term “resident” means a person ordinarily resident in the territory of the Contracting Party concerned;

f. the term “wife” means a wife who is maintained by her husband;

g. the term “widow” means a woman who was maintained by her husband at the time of his death;

h. the term “child” means a child under school-leaving age or under 15 years of age, as may be prescribed;

i. the term “qualifying period” means a period of contribution, or a period of employment, or a period of residence, or any combination thereof, as may be prescribed.

2.                  In Articles 10, 34 and 49 the term “benefit” means either direct benefit in the form of care or indirect benefit consisting of reimbursement of the expenses borne by the person concerned.

Article 2

1.                  Each Contracting Party shall comply with: a. Part I; b. at least six of Parts II to X, provided that Part II shall count as two Parts and Part V as three Parts; c. the relevant provisions of Parts XI and XII; and d. Part XIII.

2.                  The terms of sub-paragraph b of the foregoing paragraph can be regarded as fulfilled if: a. at least three of Parts II to X, including at least one of Parts IV, V, VI, IX and X are complied with; and b. in addition, proof is furnished that the social security legislation in force is equivalent to one of the combinations provided for in that sub-paragraph, taking into account: i. the fact that certain branches covered by sub-paragraph a of this paragraph exceed the standards of the Code in respect of their scope of protection or their level of benefits, or both; ii. the fact that certain branches covered by sub-paragraph a of this paragraph exceed the standards of the Code by granting supplementary services of advantages listed in Addendum 2; and iii. branches which do not attain the standards of the Code.

3.                  A Signatory desiring to avail itself of the provisions of paragraph 2.b of this article shall make a request to this effect in the report to the Secretary General submitted in accordance with the provisions of Article 78. The Committee, basing itself on the principle of equivalence of cost, shall lay down rules co-ordinating and defining the conditions for taking into account the provisions of paragraph 2.b of this article. These provisions may only be taken into account in each case with the approval of the Committee, the decision to be taken by a two-thirds majority.

Article 3

Each Contracting Party shall specify in its instrument of ratification those parts of Parts II to X in respect of which it accepts the obligations of this Code, and shall also state whether and to what extent it avails itself of the provisions of Article 2, paragraph 2.

Article 4

1.                  Each Contracting Party may subsequently notify the Secretary General that it accepts the obligations of the Code in respect of one or more of Parts II to X not already specified in its ratification.

2.                  The undertakings referred to in paragraph 1 of this article shall be deemed to be an integral part of the ratification and to have the force of ratification as from the date of notification.

Article 5

Where, for the purpose of compliance with any of the Parts II to X of this Code which are to be covered by its ratification, a Contracting Party is required to protect prescribed classes of persons constituting not less than a specified percentage of employees or residents, that Contracting Party shall satisfy itself, before undertaking to comply with such part, that the relevant percentage is attained.

Article 6

For the purpose of compliance with Parts II, III, IV, V, VIII (in so far as it relates to medical care), IX or X of this Code, a Contracting Party may take account of protection effected by means of insurance which, although not made compulsory by national laws or regulations for the persons to be protected:

a.                   is subsidised by the public authorities or, where such insurance is complementary only, is supervised by the public authorities or administered, in accordance with prescribed standards, by joint operation of employers and workers;

b.                  covers a substantial part of the persons whose earnings do not exceed those of the skilled manual male employee, determined in accordance with Article 65; and

c.                  complies, in conjunction with other forms of protection, where appropriate, with the relevant provisions of the Code.

No recourse is had to the provisions of Article 6 (all the insurance schemes are compulsory)


PART II – MEDICAL CARE

Article 7

Each Contracting Party for which this part of this Code is in force shall secure to the persons protected the provision of benefit in respect of a condition requiring medical care of a preventive or curative nature in accordance with the following articles of this part.

Article 8

The contingencies covered shall include any morbid condition, whatever its cause, and pregnancy and confinement and their consequences.

Article 9

The persons protected shall comprise: a. prescribed classes of employees, constituting not less than 50 per cent of all employees, and also their wives and children; or b. prescribed classes of the economically active population, constituting not less than 20 per cent of all residents, and also their wives and children; or c. prescribed classes of residents, constituting not less than 50 per cent of all residents.

A.     The recourse is had to Article 9 (c) of the Code.

B.     The protected persons are defined in the Health Insurance Act, § 5 subsection (1) - “an insured person is a permanent resident of Estonia or a person residing in Estonia on the basis of a temporary residence permit or the right of residence or a person legally staying and working in Estonia based on a temporary ground for stay for whom a payer of social tax must pay social tax or who pays social tax for themselves in accordance with the procedure, in the amounts and within the time limits provided for in the Social Tax Act, or a person considered equal to such persons on the basis of this Act”.

Thus, the classes of persons protected are:

1) persons who work on the basis of an employment contract concluded for a term exceeding one month or for an unspecified term and for whom the employer must pay social tax;

2) officials, active servicemen, members of the Riigikogu, the President of the Republic, members of the Government of the Republic, judges, the Chancellor of Justice, the Auditor General, the Public Conciliator, members of councils of local authorities, members of city or rural municipality governments, mayors of rural municipality or city districts for whom the state or the local authority must pay social tax via its agencies;

3) members of the management or controlling bodies of legal persons within the meaning of § 9 of the Income Tax Act for whom the legal person or legal persons pay social tax on the basis of clause 9 (1) 2) of the Social Tax Act in the monthly total amount calculated on the basis of at least the monthly rate established in the state budget for the given budgetary year (hereinafter minimum social tax obligation);

4) persons receiving remuneration or service fees on the basis of a contract for services, a mandate or another contract or other contracts under the law of obligations for the provision of services, who are not entered in the commercial register as self-employed persons and for whom the other party to the contract pays social tax on the basis of clause 9 (1) 2) of the Social Tax Act in the monthly total amount calculated on the basis of at least to the extent of the minimum social tax obligation;

5) persons for whom the state, local authority or, based on the Creative Persons and Artistic Associations Act, an artistic association (hereinafter artistic association) is required to pay social tax under § 6 of the Social Tax Act;

6) persons receiving an unemployment insurance benefit on the basis of the Unemployment Insurance Act for whom the Estonian Unemployment Insurance Fund must pay social tax on the basis of clause 2 (1) 8) of the Social Tax Act.

(3) An insured person who pays social tax for themselves is a person who is entered in the commercial register as a self-employed person or who has been registered with the Tax and Customs Board as a notary, certified translator or enforcement officer and who pays social tax on their business income in accordance with the Social Tax Act. 

(31) An insured person for whom social tax is paid by a self-employed person registered in the commercial register is their spouse who has been entered in the employment register as the spouse participating in the activities of the undertaking of the self-employed person on the basis of § 202 of the Taxation Act.

1.      (4) The following persons for whom social tax is not paid are considered to be equal to insured persons on the basis of this Act:

1) pregnant women whose pregnancy has been identified by a doctor or a midwife;

2) persons under 19 years of age;

3) persons who receive a state pension granted in Estonia;  

31) persons who have been found to have partial work ability or no work ability under the Work Ability Allowance Act;

4) persons with up to five years left until attaining the retirement age who are maintained by their spouses who are insured persons;

5) persons acquiring basic or general secondary education, persons acquiring formal vocational education and higher education students who are permanent residents of Estonia and study in an educational institution in Estonia founded and operating on the basis of legislation or in an equivalent educational institution abroad, except for doctoral candidates that receive the doctoral allowance.

C.     Statistical information (Part III Article 74)

a)      The number of persons insured by Estonian Health Insurance Fund as of December 31, 2020 was 1 265 601 (data by Estonian Health Insurance Fund);

b)      Total population of Estonia as of January 1, 2021 was 1 330 068 (data by Statistics Estonia).

c)      The number of insured persons amounted to 95,2% of the total in 2020.

D.     Please refer to the answer given in point B above

E.     Non-applicable  

Since 1st of July 2020 it is possible to make a contract to have a voluntary health insurance from Estonian Health Insurance Fund for crew. To get the voluntary insurance the person should have been worked as the member of crew during 12 months before the contract under a single maritime employment contract or agreement.

Article 10

1. The benefit shall include at least:

(a)   in case of a morbid condition,

                                i.            general practitioners care, including domiciliary visiting;

                              ii.            specialist care at hospitals for in-patients and out-patients, and such specialist care as may be available outside hospitals;

                            iii.            the essential pharmaceutical supplies as prescribed by medical or other qualified practitioners; and

                            iv.            hospitalisation where necessary; and

(b)   in case of pregnancy and confinement and their consequences,

                                i.            pre-natal, confinement and post-natal care either by medical practitioners or by qualified midwives; and

                              ii.            hospitalisation where necessary.

2. The beneficiary or his breadwinner may be required to share in the cost of the medical care the beneficiary receives in respect of a morbid condition; the rules concerning such cost-sharing shall be so designed as to avoid hardship.

3. The benefit provided in accordance with this article shall be afforded with a view to maintaining, restoring or improving the health of the person protected and his ability to work and to attend to his personal needs.

4. The institutions or government departments administering the benefit shall, by such means as may be deemed appropriate, encourage the persons protected to avail themselves of the general health services placed at their disposal by the public authorities or by other bodies recognised by the public authorities.

In 2019, cost-sharing of Estonian people when paying for health services constituted 24% of total healthcare expenditures. The largest part of cost-sharing constitute the expenses on medicines (according to the National Institute for Health Development (NIHD), 33% in total, out of which 13.6% constitute the expenses on OTC medicines and 18% the expenses on prescription medicines). The second leading cause of cost-sharing is dental care (28%). This is followed by nursing (17.6%) and other outpatient services (10.7%).

Most important health care expenditures, thousands of euros:

Expenditure by function

Total expenditure (thousands of euros)

Household out-of-pocket payment

Importance in total out-of-pocket payments %

Household share %

Pharmaceuticals

Prescribed medicines

Over-the-counter medicines

314 221

233 291

62 410

147 745

81180

61481

32.6%

18%

13.6%

47.1%

34.8%

98.5%

Dental outpatient care

181 078

126 792

28%

70%

Long-term care

186 076

79674

17.6%

42.8%

Specialised outpatient care

140 056

48 591

10.7%

34.7%

Other expenditure

1 071 891

50 218

11.1%

4.7%

Total

1 893 322

  453 020

100%

24%

A.                 The health insurance fund will assume the obligation of an insured person to pay for health services if the services are entered in the list of health services of the health insurance fund and the provision thereof is therapeutically justified. (subsection § 29 (1) of the Health Insurance Act). A precondition for this is that the health service is provided by a contractual partner of the Health Insurance Fund. In most cases in outpatient care the payment is based on fee-for-service. In the inpatient care the mix payment system of fee-for-service and diagnosis related groups (DRG) is used. The mix payment system is used also in primary care – the bigger part is capitation, but there is also fee-for-service and allowances for one month.

Dental benefit for adults is limited with certain services and there is also co-payment, which varies by different groups from 15% up to 50% of the price. Children’s dental care is covered by health insurance according to the services and prices in the health care services list.

The list of the services funded by Estonian Health Insurance Fund is provided in Regulation no. 64 of the Government of the Republic of 13 August 2020 “List of Health Services of Estonian Health Insurance Fund”, which entered into force on 1 September 2020.

An insured person is entitled to receive the health insurance benefits provided for in § 25 of the Health Insurance Act. Health insurance benefit is a high quality and timely health service, necessary medicinal product or medical device which is provided to an insured person under the conditions provided for in the Health Insurance Act by the health insurance fund or a person who has concluded a corresponding contract with the fund (benefit in kind), or a sum of money that the health insurance fund must pay to an insured person under the conditions provided for in the Health Insurance Act for the health care expenses incurred by the person or upon their temporary incapacity for work (pecuniary benefit).

Patient cost-sharing:

Under the conditions provided for in §§ 67-72 of the Health Insurance Act, the health care provider has a right to charge from the insured person the visit fee and the in-patient fee which will not be compensated by the health insurance fund. The above-mentioned fees are the expenses to be borne by the insured person in addition to the cost-sharing to receive health insurance benefits.

Visit fee:

The maximum rate of visit fee is 5 euros

A person providing general medical care (family doctor) may charge a visit fee only for a home visit, family doctor may not charge a visit fee for an out-patient visit. The visit fee for a home visit cannot be charged from a pregnant woman and from an insured person who is less than two years of age (subsection § 69 (3) of the Health Insurance Act). A fee for a home visit must not exceed 5 euros, regardless of the number of insured persons per one home visit.

Upon provision of out-patient specialised medical care, the visit fee must not be charged if out-patient specialised medical care is provided to a pregnant woman, out-patient specialised medical care is provided to the insured person under two years of age, provision of emergency out-patient specialised medical care is directly followed by the provision of in-patient health services or if the insured person is referred to a health care professional working for the same health care provider but in another speciality or to a health care professional working for another health care provider but providing the same health service.

If the patient terminates a contract for provision of health services less than 24 hours before the time agreed upon for the provision of the health service or fails to appear at the place of performance of the contract by the time agreed for the provision of the service, the provider of the health service will have the right to charge the double visit fee from the patient upon performance of the next contract for the health service (subsection § 70 (6) of the Health Insurance Act).

In-patient fee

The maximum rate of in-patient fee is 2.50 euros per day. An in-patient fee may be charged for each calendar day which has commenced during the time spent by a person in hospital, but not for more than ten calendar days for one case of disease, i.e. up to 25 euros in total (§ 71 of the Health Insurance Act).

The in-patient fee must not be charged for a period when intensive care is provided, upon provision of in-patient specialised medical care in connection with pregnancy or delivery, or upon provision of in-patient specialised medical care to a minor (subsection § 71 (2) of the Health Insurance Act).

Pursuant to § 73 of the Health Insurance Act, a health care provider may charge a reasonable fee from the insured person for the documents issued (a health care provider must not charge a fee from the insured person for the issue of a certificate of incapacity for work or a prescription). If the insured person wants an excerpt of his/her health record, a health care provider may demand a fee of up to 0.19 euros per page for the data in question on paper starting from the twenty-first page (subsection § 19 (2) of the Personal Data Protection Act).

Health services to be provided and in addition to the aforementioned, price limits for health services have been established in the List of Health Services of Estonian Health Insurance Fund, which also includes the rates of patient cost-sharing (https://www.riigiteataja.ee/akt/123032021022).

Pursuant to this list, patient cost-sharing in 2020 is the following:

Health service

Cost-sharing in 2020

Rehabilitation supporting the functions (to the person of at least 19 years of age), 20% (code 8030)

14,15 euros per day, 10 days in total

Induced abortion at woman’s own request (with anaesthesia), 30% (code 1M2110)

41,75 euros

Medical abortion, 50% (code 246R)

17,67 euros

In-patient fee of independent in-patient nursing (former nursing care), 15% (code 2063)

12,68 euros

Enteral nutritional mixture 1000 kcal, 50% (code 7039)

1,83 euros

In case of pharmaceuticals distributed at a discount, patient cost-sharing is the following (§§ 41-42 of the Health Insurance Act):

Reimbursement rates for medicinal products (in %)

Cost-sharing in 2020

In case of prescription written with 50% discount

2.50 euros

Prescription written with 75%, 90% discount

2.50 euros

Prescription written with 100% discount

2.50 euros

If the price limit or the agreed price of a medicine is lower than retail price, the patient must also pay the part exceeding the price limit or the agreed price in addition to the cost-sharing. More information about the calculation examples is available at the Estonian Health Insurance Fund homepage http://www.haigekassa.ee/en/ravimi-hind.

The limits for the payment obligation of an insured person assumed by the health insurance fund will be 90 % or 50 % of the agreed price (i.e. retail price) of the medical device or sales packaging of the medical device entered in the list of medical devices or, if a reference price is applicable to a group of medical devices, of the reference price. Patient cost-sharing is a difference between the retail price of the medical device and the payment obligation assumed by the health insurance fund.

Dental care of the persons of 19 years of age and younger will be reimbursed by the health insurance fund. For adult insured persons dental care is free for those who need emergency care. Emergency care means health services which are provided by health care professionals in situations where postponement of care or failure to provide care may cause the death or permanent damage to the health of the person requiring care (§ 5 of the Health Services Organisation Act). The need for emergency care shall be determined by health care provider.

 Health Insurance Fund will reimburse dental care to adults with health insurance up to 40 euro per year, but 50% of the invoice will be paid by the patient (§ 331 of the Health Insurance Act).

The dental care benefit increases up to 85 euros per year:

-          for pregnant women and mothers of children under one year of age;

-          for old age pensioners;

-          for persons receiving pension for incapacity for work;

-          for persons with partial or no work ability;

-          for persons over 63 years of age;

-          for persons with increased need for dental care.

The benefit will be taken into account at the time of payment to the dentist. The patients themselves pay at least 15% of the price of the services.

Once every three years, the Health Insurance Fund compensates old-age and disability pensioners, health insured persons over the age of 63 and persons with partial or no ability to work for dentures in the amount of 260 euros (§ 331 (4) of the Health Insurance Act). Denture benefit is paid up to 260 euros over a three-year period. The benefit will be taken into account at the time of payment to the dentist.

Since the beginning of 2018, supplementary benefits for medicinal products are provided to insured persons who pay at least EUR 100 per the calendar year for discount prescriptions (so far they received benefits from the expenses of EUR 300 per year). The benefit is meant to help those who spend more money than average for the purchase of discount medicines. For example, people who need to use expensive medicines or people with chronic illnesses who have to take medication over an extended period of time or more than one medicine at a time. The supplementary benefit for medicinal products is automatic, the insured person will receive additional benefits, along with the usual medical benefit, at the time of purchase of the drug at the pharmacy, and submission of an application to the Health Insurance fund is not required (https://haigekassa.ee/en/people/pharmaceuticals#tab-additional-benefit).

The number of insured persons who have received supplementary benefits for medicinal products has increased significantly over the years. Since 2016 the number of persons who have received supplementary benefits for medicinal products has increased by approximately 138 000 persons by 2020.

B.                 The description of the extent to which the patient is required to share the cost of medical care received is provided under point A.

                                                                                     

C.                 It is not allowed to charge a visit fee from pregnant women for a home visit and an outpatient visit (subsection § 69 (3), clause § 70 (4) 1) of the Health Insurance Act), and it is also not allowed to charge an in-patient fee upon provision of in-patient specialised medical care in connection with pregnancy or delivery (subsection § 71 (2) of the Health Insurance Act).

D.                 Medicinal product is prescribed by using the name of the active substance contained therein. If, when prescribing a medicinal product, the name of the active substance of the medicinal product is used, the person dispensing the medicinal product must suggest to the patient, from among the medicinal products suitable for the patient, the proprietary medicinal product in the case of which the amount that the patient must pay for the product is the lowest. If the individual presenting the prescription refuses to purchase the most favourable proprietary medicinal product or if the most favourable proprietary medicinal product is not available from the wholesalers in Estonia, the person dispensing the medicinal product enters the corresponding reasons on the prescription (Regulation No. 30 of 18 February 2005 of the Minister of Social Affairs „The conditions and procedure for the issue of prescriptions for medicinal products and for the dispensation of medicinal products by pharmacies and the format of the prescription”, subsections § 4 (5) and § 6 (5) - entered into force in 2010).

Estonian Health Insurance Fund is conducting information campaigns for the insured persons, in order to raise the awareness of people about the functioning and possibilities of health insurance system and the need to participate in screenings. Illness prevention is an essential part of health care services and is directed at including healthy persons in health surveys, population-based screenings or preventive health services, in order to avoid or lower the prevalence of the avoidable illnesses and reduce the need for medical care.

Article 11

The benefit specified in Article 10 shall, in a contingency covered, be secured at least to a person protected who has completed, or whose breadwinner has completed, such qualifying period as may be considered necessary to preclude abuse.

1) The insurance cover of an employee and an official will commence upon expiry of a waiting period of fourteen days from the date of commencement of work entered in the employment register specified in § 251 of the Taxation Act (hereinafter employment register). The insurance cover will terminate two months after the date of termination of work entered in the employment register (§ 6 of the Health Insurance Act).

2) The insurance cover of persons for whom social tax is paid by state, local authority or artistic association will commence as of the making of an entry on commencement of the insurance cover in the health insurance database. Respective authority undertakes to submit the relevant data to the health insurance fund within 7 days (§ 7, subsection § 13 (3) of the Health Insurance Act). Insurance cover expires one month after the termination of the obligation to pay social tax.

3) The insurance cover of members of management or controlling bodies of legal persons and persons receiving remuneration and service fees based on contract under law of obligations will commence as of the making of an entry to the health insurance database if social tax has been declared for the person to the extent of the minimum social tax obligation based on the Social Tax Act. The insurance cover will be suspended on the day following the day when, according to the data received from the Tax and Customs Board, social tax has not been declared to the extent of the minimum social tax obligation by the due date specified in the Social Tax Act (§ 8 of the Health Insurance Act).

4) The insurance cover of a person receiving unemployment insurance benefit will commence as of the making of an entry on commencement of the insurance cover in the health insurance database. The insurance cover will terminate two months after termination of the obligation of the Estonian Unemployment Fund to pay social tax for the person (§ 91 of the Health Insurance Act).

5) The insurance cover of a self-employed person will commence after the passing of the waiting period of fourteen days from the entry in the commercial register or register of taxable persons. The insurance cover will terminate two months after making of the deletion entry in the commercial register or register of taxable persons (§ 10 of the Health Insurance Act).

6) The insurance cover of the spouse participating in the activities of the undertaking of a self-employed person will commence after the passing of the waiting period of fourteen days from the entry in the register of taxable persons. The insurance over of the spouse participating in the activities of the undertaking of a self-employed person will terminate two months after making a deletion entry regarding the spouse in the register of taxable persons or after making a deletion entry regarding the self-employed person in the commercial register (§ 101 of the Health Insurance Act).

7) The insurance cover of persons considered equal to insured persons will commence as of the making of an entry on commencement of the insurance cover in the health insurance database (the latest deadline for making an entry is 5 calendar days). The insurance cover of a person who has been declared permanently incapacitated for work or as having partial work ability or no work ability will terminate upon expiry of a term of three months from the expiry of the period of the permanent incapacity for work or partial work ability or absent work ability. The insurance cover of a woman who has obtained the insurance cover due to pregnancy will terminate three months after the estimated date of delivery as determined by a doctor or midwife, upon delivery the insurance of the woman will continue as a parent of a child of less than 3 years of age. The insurance cover of a pupil and a student will be terminated after three months from the graduation of educational institution (§ 12 of the Health Insurance Act).

Article 12

The benefit specified in Article 10 shall be granted throughout the contingency covered, except that, in case of a morbid condition, its duration may be limited to 26 weeks in each case, but benefit shall not be suspended while a sickness benefit continues to be paid, and provision shall be made to enable the limit to be extended for prescribed diseases recognised as entailing prolonged care.

1. There are no time limits for the receipt of health services. In the event of a disease or injury, an insured person has the right to receive sickness benefit until the date on which their work ability is restored as specified in the certificate for sick leave, but not for more than 240 consecutive calendar days in the event of tuberculosis or 182 consecutive calendar days in the event of any other disease (subsection § 57 (1) of the Health Insurance Act).

2. Pursuant to § 28 of the Health Insurance Act, if a person fails to follow the medically justified treatment prescribed by a doctor or a family nurse, they will lose the right to receive health insurance benefits in connection with the case of disease for the prevention of which or against which the particular treatment was prescribed.

Intra-agency proceedings with regard to a decision made by the health insurance fund may be initiated by an insured person within ten calendar days in accordance with the procedure provided for in the Administrative Procedure Act.

The aforementioned right will not be applied, if:

1) the monetary value of the health insurance benefit concerned does not justify restriction of the insured person’s right to bodily self-determination;

2) application of the provisions would constitute a significant breach of the insured person’s right to bodily self-determination;

3) the insured person or their legal representative has good reason for refusing to grant consent to or follow the treatment prescribed by a doctor or family nurse;

4) the health service prescribed is likely to cause a risk of serious health damage to the insured person or their death;

5) the health service prescribed causes great pain or a danger of prolonged pain to the insured person.

An insured person does not have the right to receive a health insurance benefit if the need for the benefit has arisen as a result of participation in scientific research, including a clinical trial.

Pursuant to § 60 of the Health Insurance Act, the insured person does not have the right to receive the benefit for temporary incapacity for work if:

1) the illness or injury of the insured person is caused by the intent of the person;

2) the illness or injury of the insured person is caused by a state of intoxication ascertained in accordance with the procedure established on the basis of the Traffic Act or by an examination conducted by a doctor;

3) the insured person fails to comply with the medically justified treatment prescribed by a doctor, as a result of which the recovery of the person is hindered;

4) the insured person fails to appear at a doctor’s consultation at the prescribed time without good reason;

5) the insured person receives income subject to social tax for the period of the temporary incapacity for work.

If the insured person or the person being cared for fails to appear at a doctor’s consultation at the prescribed time without good reason, the person will lose the right to receive the benefit for temporary incapacity for work as of the date of their failure to appear at the consultation.

The insured person does also not have the right to receive the benefit for temporary incapacity for work if the insured person is:

1) on holiday;

2) on care leave during a holiday.

Changes made due to the COVID-19 crisis:

Extension of the revenue base of the Estonian Health Insurance Fund

The government has made several additional contributions to the Health Insurance Fund to cover the costs incurred due to the COVID 19 pandemic (personal protective equipment, medications, increase in health workforce salary and preparedness etc). In addition, it was agreed in the state budget law that the government will cover the loss of Health Insurance Fund revenue caused by the decline in social tax. The main reasoning for this was to keep the access level of health care services.

In addition, in 2021, sickness benefits will be reimbursed from the second day of every insured person who is in sickness leave - the employer pays for the 2nd-5th day (so far it was for the 4th-8th day) and the EHIF pays the sickness benefit from the 6th day (so far from the 9th day). It is not known at this time whether this procedure will be extended.

Extension of emergency care definitions due to COVID-19

During the COVID-19 situation the definition of emergency care was extended – health insurance fund covers uninsured persons cost if there is doubt that the person can have the virus or the person has been in contact with another person who has had the virus.


PART III – SICKNESS BENEFIT

Article 13

Each Contracting Party for which this part of the Code is in force shall secure to the persons protected the provision of sickness benefit in accordance with the following articles of this part.

Article 14

The contingency covered shall include incapacity for work resulting from a morbid condition and involving suspension of earnings, as defined by national laws or regulations.

Article 15

The persons protected shall comprise:

a. prescribed classes of employees, constituting not less than 50 per cent of all employees; or

b. prescribed classes of the economically active population, constituting not less than 20 per cent of all residents; or

c. all residents whose means during the contingency do not exceed limits prescribed in such a manner as to comply with the requirements of Article 67.

A. The recourse is had to the sub-paragraph (b) of Article 15 of the Code.

B. Pursuant to subsection § 50 (1) of the Health Insurance Act, the benefit for temporary incapacity for work is financial compensation paid by the health insurance fund to an insured person on the basis of a certificate of incapacity for work in cases where the person does not receive income subject to individually registered social tax due to a temporary release from the their duties or economic or professional activity.

The benefit for temporary incapacity for work is paid to the following insured persons:

1) employee;

2) officials, active servicemen, members of the Riigikogu, the President of the Republic, members of the Government of the Republic, judges, the Chancellor of Justice, the Auditor General, the Public Conciliator, members of councils of local authorities, members of city or rural municipality governments, mayors of rural municipality or city districts;

3) members of the management or controlling bodies of legal persons

4) persons receiving remuneration or service fees on the basis of a contract or contracts under the law of obligations for the provision of services, who are not entered in the commercial register as self-employed persons

5) self-employed persons

6) spouse participating in activities of undertaking of self-employed person.

The types of the benefit for temporary incapacity for work are:

1) sickness benefit;

2) maternity benefit;

3) adoption benefit;

4) care benefit.

The benefit for temporary incapacity for work will not be paid to persons covered by insurance on the grounds specified in clauses 5 (2) 3) (persons for whom social tax is paid by state, local authority or artistic association) and 6) (persons receiving an unemployment insurance benefit on the basis of the Unemployment Insurance Act) or subsection 5 (4) (persons considered equal to insured persons) of the Health Insurance Act or to persons considered equal to insured persons on the basis of a contract.

C. Updated statistical information (Part II, Article 74):

a) the number of economically active insured persons as of December 31, 2020 was 620,564 (data by Estonian Health Insurance Fund)

b) total population of Estonia as of January 1, 2021 was 1,330,068 (data by Statistics Estonia);

c) the number of economically active insured persons made up 46,7 % of the total population of Estonia.

Article 16

1. Where classes of employees or classes of the economically active population are protected, the benefit shall be a periodical payment calculated in such a manner as to comply with the requirements of Article 65 or with the requirements of Article 66.

2. Where all residents whose means during the contingency do not exceed prescribed limits are protected, the benefit shall be a periodical payment calculated in such a manner as to comply with the requirements of Article 67; provided that a prescribed benefit shall be guaranteed, without means test, to the prescribed classes of persons determined in accordance with Article 15.a or b.

A. The recourse is had to the Article 65 of the Code.

Titles I and II, Article 65

A. In 2020 and 2021, the minimum monthly wage for full-time work was 584 euros and the upper limit of income of sole proprietors taxable with social tax respectively 5,840 euros per month.

The sickness benefit is taxable with income tax (in 2020 and in 2021, the income tax rate amounted to 20 percent and starting from 2018, the annual basic exemption (non-taxable amount) for resident individuals is up to 6000 EUR per year, but decreasing depending on the total income amount. When taxable income per year exceeds 14 400€ the following formula for calculating the non-taxable amount applies: 6000-6000/10800x(amount of income – 14 400). If total amount of all income is 25 200 EUR in a year or more, there is no right to basic exemption at all. On a monthly basis the basic allowance is 500 EUR if taxable income does not exceed 1200 EUR per month. It is reduced linearly and reaches 0 EUR when taxable monthly income is more than 2100 EUR.).

B, C. The average income of insured persons taxable with social tax was 1347.69 euros per month in 2020 (data by the Social Insurance Board). Respectively, the gross monthly earnings of a regular skilled male worker pursuant to Article 65 (6) (c) of the Code were as follows in 2020:

1.25 * 1347.69 = 1684.61 euros.

Average income of insured persons taxable with social tax, euros a month

euros

2020

1347.69

(Social Insurance Board)

Gross monthly earnings of a regular skilled male worker, euros

euros

2020

1684.61

(primary data from Social Insurance Board)

D. In 2020, the amount of the sickness benefit for a standard beneficiary (in in-patient care) for one month was as follows:

0.7 * 1684.61 = 1179.23 euros.

E, F. In 2021, the amount of family benefits for a standard beneficiary with two children amounted to 120 euros per month. Payment of family benefits is not related with working/not working of parents or receiving other social security benefit, i.e. the same family benefit is paid both while working and receiving sickness benefits.

G. The gross replacement rate of a standard beneficiary of sickness benefit was: (1179.23 + 120,00) / (1684.61 + 120,00) = 72%.

The benefit for temporary incapacity for work

The benefit for temporary incapacity for work will not be paid to persons covered by insurance on the grounds specified in clauses 5 (2) 3) (persons for whom social tax is paid by state, local authority or artistic association) and 6) (persons receiving an unemployment insurance benefit on the basis of the Unemployment Insurance Act) or subsection 5 (4) (persons considered equal to insured persons) of the Health Insurance Act or to persons considered equal to insured persons on the basis of a contract.

No benefits will be paid for the first 3 days of sickness, an employer shall pay to an employee sickness benefit for the fourth until the eighth calendar day of sickness (§ 122 of the Occupational Health and Safety Act), the health insurance fund will pay sickness benefit to everyone as of the ninth day of sickness (subsection § 56 (1) of the Health Insurance Act). Employer will pay sickness benefit of 70 per cent of the employee’s average wages for previous 6 months, the health insurance fund will pay sickness benefit of 70 per cent of the income the calendar year prior to the sickness.

Table of the types of benefits for temporary incapacity for work (§ 51 the Health Insurance Act) and the rates of benefits (§§ 54, 55 of the Health Insurance Act):

Reason for absence from work

Type of certificate

Procedure for compensation

Duration of payment for an insured event

Sickness

Sick leave certificate

Employer pays sickness benefit from the fourth to eighth day of sickness Health insurance fund will pay sickness benefit as of the ninth day of sickness, rate of benefit is 70%.

Up to 182 days (240 days in case of tuberculosis)

Home injury

Sick leave certificate

Employer pays sickness benefit from the fourth to eighth day of sickness Health insurance fund will pay sickness benefit as of the ninth day of sickness, rate of benefit is 70%.

Up to 182 days

Traffic injury

Complication / sickness occurred as a result of traffic injury

Sick leave certificate

Employer pays sickness benefit from the fourth to eighth day of sickness Health insurance fund will pay sickness benefit as of the ninth day of sickness, rate of benefit is 70%.

Up to 182 days

Quarantine

Sick leave certificate

Employer pays sickness benefit from the fourth to eighth day of sickness, rate of benefit is 70%.

Up to 7 days

Occupational diseases

Sick leave certificate

Employer pays sickness benefit from the second day of sickness, rate of benefit is 100%.

Up to 182 days

Accident at work

Accident at work in traffic

Complication / sickness occurred as a result of accident at work

Sick leave certificate

Employer pays sickness benefit from the second day of sickness, rate of benefit is 100%.

Up to 182 days

Injury in the event of protecting national or public interests or preventing a criminal offence

Sick leave certificate

Employer pays sickness benefit from the second day of sickness, rate of benefit is 100%.

Up to 182 days

Transfer to less complicated work

Sick leave certificate

Health insurance fund will compensate the difference in salary caused by the transfer to less complicated work with the rate of 100%. If a person is absent from work due to the lack of less complicated work, the person will receive benefit as of the 2nd day, with the rate of 70%. The benefit can be paid only in the event of pregnancy until pregnancy and maternity leave.

Until pregnancy and maternity leave

Sickness or injury during pregnancy

Sick leave certificate

Health insurance fund pays sickness benefit from the second day of sickness, rate of benefit is 70%.

Up to 182 days

Nursing a child of under 12 years of age

Certificate for care leave

Health insurance fund pays sickness benefit from the first day of absence from work, rate of benefit is 80%.

Up to 14 days

Nursing a child of under

12 years of age

Certificate for care leave

Health insurance fund pays sickness benefit from the first day of absence from work, rate of benefit is 80%.

Up to 60 calendar days if the reason for the illness is a malignant tumour and the treatment of the child commences in a hospital.

Nursing a family member who is ill at home

Certificate for care leave

Health insurance fund pays sickness benefit from the first day of absence from work, rate of benefit is 80%.

Up to 7 days

Caring for a child of under three years of age or for a disabled child of under 16 years of age when mother of the child is ill or is receiving obstetrical care

Certificate for care leave

Health insurance fund pays sickness benefit from the first day of absence from work, rate of benefit is 80%.

Up to 10 days

Pregnancy and maternity leave

Certificate for maternity leave

Health insurance fund pays sickness benefit from the first day of absence from work, rate of benefit is 100%.

Up to 140 days

Leave of a person adopting a child of under 10 years of age

Certificate for adoption leave

Health insurance fund pays sickness benefit from the first day of absence from work, rate of benefit is 100%.

Up to 70 days

Donation of an organ or blood stem cells

Sick leave certificate

Health insurance fund pays sickness benefit from the first day of absence from work, rate of benefit is 100%.

Up to 182 days

Pursuant to subsection § 55 (1) of the Health Insurance act, average income per calendar day is calculated on the basis of the information concerning social tax calculated or paid to the insured person, as submitted by the Tax and Customs Board, and the information certifying the right to receive the benefit as submitted by the persons specified in clauses 5 (2) 1), 2), 4) or 5) and subsections 5 (3) and (31) of the Health Insurance Act. Social tax paid by the state, rural municipality, city or artistic association under clauses 6 (1) 1) to 3) and 6) to 15) and subsections (11) and (12) of the same section of the Social Tax Act is not taken into account upon calculating the average income per calendar day.

The average income of a person insured per calendar day is deemed to be equal to the income calculated on the basis of the social tax calculated for the insured person during the calendar year preceding the calendar year of the date on which release from the performance of their duties commenced as specified in the certificate of incapacity for work, divided by 365. If social tax was not paid for the person insured during the calendar year serving as the basis for calculation of their average income per calendar day, the average income per calendar day will be deemed to be equal to the negotiated wage of the employee divided by 30, but not more than the amount of the minimum monthly wage established by the Government of the Republic and divided by 30.

If social tax was not paid for a person working under contract under law of obligations, self-employed person or a spouse participating in the activities of the latter during the calendar year serving as the basis for calculation of their average income per calendar day, the average income per calendar day is deemed to be equal to the monthly rate provided for in § 21 of the Social Tax Act, divided by 30. Benefits for temporary incapacity for work, including sickness benefit, are taxable with income tax, income tax rate is 20%. No maximum limit of salary is established for the calculation of sickness benefit.

Article 17

The benefit specified in Article 16 shall, in a contingency covered, be secured at least to a person protected who has completed such qualifying period as may be considered necessary to preclude abuse.

1) The insurance cover of an employee and an official will commence upon expiry of a waiting period of fourteen days from the date of commencement of work entered in the employment register specified in § 251 of the Taxation Act (hereinafter employment register).

2) The insurance cover of persons for whom social tax is paid by state, local authority or artistic association will commence as of the making of an entry on commencement of the insurance cover in the health insurance database. Respective authority undertakes to submit the relevant data to the health insurance fund within 7 days (§ 7, subsection § 13 (3) of the Health Insurance Act).

3) The insurance cover of members of management or controlling bodies of legal persons and persons receiving remuneration and service fees based on contract under law of obligations will commence as of the making of an entry to the health insurance database if social tax has been declared for the person to the extent of the minimum social tax obligation based on the Social Tax Act (§ 8 of the Health Insurance Act). Data will be submitted by the Estonian Tax and Customs Board.

4) The insurance cover of a person receiving unemployment insurance benefit will commence as of the making of an entry on commencement of the insurance cover in the health insurance database. (§ 91 of the Health Insurance Act). Respective authority undertakes to submit the relevant data to the health insurance fund within 7 days

5) The insurance cover of a self-employed person will commence after the passing of the waiting period of fourteen days from the entry in the commercial register or register of taxable persons (§ 10 of the Health Insurance Act).

6) The insurance cover of the spouse participating in the activities of the undertaking of a self-employed person will commence after the passing of the waiting period of fourteen days from the entry in the register of taxable persons (§ 101 of the Health Insurance Act).

7) The insurance cover of persons considered equal to insured persons will commence as of the making of an entry on commencement of the insurance cover in the health insurance database (the latest deadline for making an entry is 5 calendar days).

If the data necessary for an entry on commencement of the insurance cover of a person to be made in the health insurance database are submitted to the health insurance fund during the period of validity of the insurance cover of the person, the insurance cover will continue on the new basis without interruption.

Article 18

The benefit specified in Article 16 shall be granted throughout the contingency, except that the benefit may be limited to 26 weeks in each case of sickness, and need not be paid for the first three days of suspension of earnings.

1. Pursuant to subsection § 57 (1) of the Health Insurance Act, in the event of a disease or injury, an insured person has the right to receive sickness benefit until the date on which their work ability is restored as specified in the certificate for sick leave, but not for more than 240 consecutive calendar days in the event of tuberculosis or 182 consecutive calendar days in the event of any other disease. The data on the waiting time for payment of sickness benefit are given in the table of Article 16.

2. Pursuant to § 60 of the Health Insurance Act, the insured person does not have the right to receive the benefit for temporary incapacity for work if:

1) the illness or injury of the insured person is caused by the intent of the person;

2) the illness or injury is caused by a state of intoxication ascertained in accordance with the procedure established on the basis of the Traffic Act or by an examination conducted by a doctor;

3) the insured person fails to comply with the medically justified treatment prescribed by a doctor, as a result of which the recovery of the person is hindered;

4) the insured person fails to appear at a doctor’s consultation at the prescribed time without good reason;

5) the insured person receives income subject to social tax specified in clause 2 (1) 1) or 3) of the Social Tax Act for the period of the temporary incapacity for work.

6) the insured person is on vacation or on care leave during vacation.

Changes made due to the COVID-19 crisis:

During the COVID-19 state of emergency a change was made – the sickness benefit was paid from the first day of sickness. This change was in force until the end of the state of emergency.

In addition, in 2021, sickness benefits were and are reimbursed from the second day of every insured person who is in sickness leave - the employer pays for the 2nd-5th day (so far it was for the 4-8th day) and the EHIF pays the sickness benefit from the 6th day (so far from the 9th day). It is not known at this time whether this procedure will be extended.

PART IV – UNEMPLOYMENT BENEFIT

Article 19

Each Contracting Party for which this part of the Code is in force shall secure to the persons protected the provision of unemployment benefit in accordance with the following articles of this part.

Article 20

The contingency covered shall include suspension of earnings, as defined by national laws or regulations, due to inability to obtain suitable employment in the case of a person protected who is capable of, and available for, work.

The contingency covered shall include the situation where a person has not left his/her last place of employment or position on his/her own initiative (except in the cases mentioned in subsections § 37 (5), § 91 (2) and § 107 (2) of the Employment Contracts Act), by agreement with employer (§ 79 of the Employment Contracts Act) or due to wrongful behaviour (clauses § 88 (1) 3)-8) of the Employment Contracts Act, § 94 of the Public Service Act). Thus, a person is entitled to receive unemployment insurance benefit, for example, if the person was made redundant, his/her employer has been liquidated, his/her employment contract was terminated at the probation period on employer’s initiative, employer has cancelled employment contract because of a long-term working inability of the employee, his/her fixed-term employment contract expired.

Article 21

The persons protected shall comprise:

a.       prescribed classes of employees, constituting not less than 50 per cent of all employees; or

b.      all residents whose means during the contingency do not exceed limits prescribed in such a manner as to comply with the requirements of Article 67.

A. The recourse is had to the sub-paragraph (a) of this Article

B. The insured persons shall comprise an employee, an official, a natural person providing services on the basis of a contract under the law of obligations, a Public Conciliator, a member of a rural municipality or city government, a rural municipality or city district elder, a non-working spouse accompanying an official on a long-term assignment abroad, and a non-working spouse accompanying an official serving in a foreign mission of the Republic of Estonia (subsection § 3 (1) of the Unemployment Insurance Act). The insurance cover does not apply to self-employed persons, notaries, bailiffs or another independent persons engaging in a profession in public law, service providers or sellers of goods within the meaning of the Simplified Business Income Taxation Act,  old-age pensioners (including early retirement pension or flexible old-age pension) or other persons listed in subsection § 3 (2) of the Unemployment Insurance Act.

C. In 2020, according to Estonian Tax and Customs Board, unemployment insurance premiums were collected from 630 735 insured persons (residents). The total number of employed and unemployed persons was 704 500 in 2020 (according to Statistics Estonia). Therefore 89.5% of the total number of employed and unemployed persons was insured.

Number of insured persons (residents) by collection of unemployment insurance premiums*:

Insured persons

2020

630 735

2019

642 488

2018

629 067

2017

614 611

2016

607 930

2015

607 338

Source: Estonian Tax and Customs Board

*The table shows only the number of insured residents by collection of unemployment insurance premiums. Non-residents are excluded, because total number of employed and unemployed persons is based on The Estonian Labour Force Survey, that covers only residents. Data from previous years have been corrected.

Total number of employed and unemployed persons (15-74 y.o.):

Total

2020

704 500

2019

702 600

2018

702 400

2017

698 800

2016

691 400

2015

683 100

Source: Statistics Estonia, Estonian Labour Force Survey

Number of insured persons (residents) per cent of total number of employed and unemployed*, %:

%

2020

89.5%

2019

91.4%

2018

89.6%

2017

88.0%

2016

87.9%

2015

88.9%

*The share of insured persons (residents) of total number of employed and unemployed has been corrected.

In 2020, the unemployment insurance premiums from insured persons added up to 139,5 million euros and the unemployment insurance premiums from employers added up to 75,1 million euros.

Unemployment insurance premiums from insured persons, thousand euros

Unemployment insurance premiums from employers, thousand euros

Total of unemployment insurance premiums, thousand euros

2020

139 504

75 118

214 622

2019

135 726

73 083

208 809

2018

123 654

66 583

190 237

2017

112 824

60 751

173 575

2016

103 472

55 715

159 187

2015

97 376

52 433

149 809

Source: Unemployment Insurance Fund

Article 22

1. Where classes of employees are protected, the benefit shall be a periodical payment calculated in such a manner as to comply either with the requirements of Article 65 or with the requirements of Article 66.

2. Where all residents whose means during the contingency do not exceed prescribed limits are protected, the benefit shall be a periodical payment calculated in such a manner as to comply with the requirements of Article 67; provided that a prescribed benefit shall be guaranteed, without means test, to the prescribed classes of employees determined in accordance with Article 21.a.

A. The recourse is had to the provisions of Article 65 of the Code

Unemployment insurance benefit is taxable with income tax. In 2020 the income tax rate was 20%.  Starting from 2018, the annual basic exemption (non-taxable amount) for resident individuals is up to 6000 EUR per year, but decreasing depending on the total income amount. When taxable income per year exceeds 14 400€, the following formula for calculating the non-taxable amount applies: 6000-6000/10800x(amount of income – 14 400). If total amount of all income is 25 200 EUR in a year or more, there is no right to basic exemption at all. On a monthly basis the basic allowance is 500 EUR if taxable income does not exceed 1200 EUR per month. It is reduced linearly and reaches 0 EUR when taxable monthly income is more than 2100 EUR.

B, C. The average income of insured persons taxable with social tax was 1,347.69 euros per month in 2020 (data by the Social Insurance Board). Respectively, the gross earnings of a regular skilled male worker pursuant to Article 65 (6) (c) of the Code were as follows in 2020:

1.25 * 1347.69 = 1684.61 euros.

D. The amount of unemployment insurance benefit to a standard beneficiary (during the first 100 days of unemployment) in a month was:

0.6*1684.61=1010.77 euros.

Note: Starting from 1st August 2020, the unemployment insurance benefit replacement rate for the first 100 days is 60% of his/her average pay for one calendar day.

E, F. In 2020, the amount of family benefits for a standard beneficiary with two children amounted to 120 euros per month. Payment of family benefits is not related with working/not working or receiving other benefits, i.e. the same family benefit is paid both while working and during unemployment.

G. Accordingly, the gross replacement rate of a standard beneficiary of unemployment insurance benefit was:

(1010.77+120)/(1684.61+120)=62.7%

B.C. The average income of insured persons taxable with social tax, euros

Euros

2020

1347.69

(Social Insurance Board)

Gross wage of a regular skilled male worker, euros

Euros

2020

1684.61

(Primary data from Social Insurance Board)

D. The amount of unemployment insurance benefit to a standard beneficiary (during the first 100 days of unemployment)

Euros

2020

1010.77

(primary data from Social Insurance Board)

E, F. Family benefits for a standard beneficiary (corresponds to child allowance paid to a family with 2 children)

Euros

2020

120

(Ministry of Social Affairs)

G. Gross replacement rate of a standard beneficiary of unemployment insurance benefit, %

%

2020

62.7

Article 23

The benefit specified in Article 22 shall, in a contingency covered, be secured at least to a person protected who has completed such qualifying period as may be considered necessary to preclude abuse.

According to the sub-section §6 (2) of Unemployment Insurance Act the insured persons have the right to receive unemployment insurance benefits if their unemployment insurance period is at least twelve months during the thirty-six months prior to registration as unemployed.

Article 24

1. The benefit specified in Article 22 shall be granted throughout the contingency, except that its duration may be limited: a. where classes of employees are protected, to 13 weeks within a period of 12 months, or to 13 weeks in each case of suspension of earnings; or b. where all residents whose means during the contingency do not exceed prescribed limits are protected, to 26 weeks within a period of 12 months; provided that the duration of the prescribed benefit, guaranteed without means test, may be limited in accordance with sub-paragraph a of this paragraph.

2. Where national laws or regulations provide that the duration of the benefit shall vary with the length of the contribution period and/or the benefit previously received within a prescribed period, the provisions of paragraph 1 of this article shall be deemed to be fulfilled if the average duration of benefit is at least 13 weeks within a period of 12 months.

3. The benefit need not be paid for a waiting period of the first seven days in each case of suspension of earnings, counting days of unemployment before and after temporary employment lasting not more than a prescribed period as part of the same case of suspension of earnings.

4. In the case of seasonal workers the duration of the benefit and the waiting period may be adapted to their conditions of employment.

1. Starting from July 1, 2014, the insurance accumulation period is accounted in months and years. Every 12 months of an insurance accumulation period are accounted as one year of the insurance accumulation period.

According to the provisions of subsection §8 (1) of Unemployment Insurance Act If the insured person’s insurance accumulation period is:

¾     shorter than 5 years, the Unemployment Insurance Fund grants the benefit for 180 calendar days;

¾     5 to 10 years, the Unemployment Insurance Fund grants the benefit for 270 calendar days;

¾     10 years or more, the Unemployment Insurance Fund grants the benefit for 360 calendar days.

2. Summary of the computation rules is provided above.

3. According to the provisions of subsection §11 (5) of Unemployment Insurance Act the unemployment insurance benefit is calculated as of the eighth day after submission of an application for the unemployment insurance benefit, not earlier than as of the eighth day of registration of the person as unemployed. From September 2020, an unemployed person who receives unemployment insurance benefits is entitled to work temporarily (§ 42 of the Labour Market Services and Benefits Act). Temporary work means work performed based on a contract for services, authorisation agreement or contract under the law of obligations for the provision of other services or employment in the public service the single duration of which does not exceed eight days during the time the person is registered as unemployed. During the time a person is registered as unemployed, the person may work on a temporary basis up to eight days in a calendar month but not more than during 12 calendar months over a period of 24 months. The 24 calendar months preceding each temporary work shall be regarded as the period of 24 months. The remuneration paid for temporary work in one calendar month and for each temporary work shall not exceed 40 per cent of the minimum monthly wage of the calendar year established on the basis of subsection § 29 (5) of the Employment Contracts Act. If all the above conditions are met, the person can receive unemployment insurance benefit together with the remuneration paid for temporary work.

      

4. No provisions are adopted for the seasonal workers.

5. According to the provisions of subsection §13 (1) of Unemployment Insurance Act the payment of an unemployment insurance benefit is terminated if the insured person refuses, without good reason, to comply with the Individual Action Plan provided in § 10 of the Labour Market Services and Benefits Act or the suitable employment provided in subsections 12 (3) and (4) of the same Act or has been granted flexible old-age pension on the basis of the State Pension Insurance Act or if the registration as unemployed of the unemployed person is terminated on the basis of clauses 7 (1) 1), 3) or 7)–12) of the Labour Market Services and Benefits Act.

Changes made due to the COVID-19 crisis:

1.      Permanent schemes

1.1.   Unemployment insurance benefit

In July 2020, the amount of unemployment insurance benefit was increased.  Starting from 1 August 2020, insured person will receive 60% of his/her average pay for one calendar day in benefits for the first 100 days, after that, insured person will receive 40%.

1.2.   Unemployment allowance

In July 2020, the daily rate of unemployment allowance was increased from 35% to 50% of minimum monthly wage. Starting from 1 January 2021, the 31-fold daily rate shall not be less than 50 % of the minimum monthly wage rate established on the basis of subsection 29 (5) of the Employment Contracts Act in force on 1 July of the year preceding the budgetary year.

1.3.   Temporary work

From September 2020, an unemployed person who receives unemployment allowance is entitled to work temporarily. Temporary work means work performed based on a contract for services, authorisation agreement or contract under the law of obligations for the provision of other services or employment in the public service the single duration of which does not exceed eight days during the time the person is registered as unemployed. During the time a person is registered as unemployed, the person may work on a temporary basis up to eight days in a calendar month but not more than during 12 calendar months over a period of 24 months. The 24 calendar months preceding each temporary work shall be regarded as the period of 24 months. The remuneration paid for temporary work in one calendar month and for each temporary work shall not exceed 40 per cent of the minimum monthly wage of the calendar year established on the basis of subsection 29 (5) of the Employment Contracts Act. If all the above conditions are met, the person can receive unemployment allowance together with the remuneration paid for temporary work.

2.      Temporary emergency measures

2.1.   Wage compensation

This scheme was introduced on 19 March 2021 due to Covid-19 emergency. It applies from 1 March to 31 May 2021. Wage compensation is paid to an employee whose employer's activities have been significantly disrupted due to extraordinary circumstances. The benefit provides workers with an income and helps employers to overcome temporary difficulties without having to lay off workers or close down business.

The benefit is paid if the company's turnover or income has decreased by at least 50% in the calendar month for which remuneration is claimed. This period iscompared to: 

 1) the average turnover or income for the period from December 2019 to February 2020, for which the turnover or income for the period from December 2019 to February 2020 shall be summed and divided by three, or

2) with the average turnover or income for July to December 2020, for which the turnover or income for July to December 2020 is summed and divided by six.

                                i.     Eligibility conditions

The benefit is paid to those employees who are not employed by the employer in the agreed amount or whose salaries have been reduced. If employer terminates the employment relationship with the employee due to redundancy in the month for which the compensation is received or in the two following month, he must repay the benefit to the Unemployment Insurance Fund.

In addition, the company must meet to the following conditions:

1)      during the calendar month for which the remuneration is claimed company's employees have not been employed to the agreed extent and the working hours of the employees have been reduced or the company's employees have their wages reduced;

2)      no compulsory winding-up, liquidation or bankruptcy proceedings have been initiated against company;

3)      as of the moment of application, company has no state tax debts or they have been deferred.

An employer can apply for compensation for employees with an employment contract whose employment began on 1 January 2021 at the latest.

                              ii.     Benefit amount

The employer submits an application to the unemployment fund after having paid wages to the employees. To apply for compensation, the employer is obliged to pay to an employee a gross monthly salary of at least EUR 200 (regardless the number of working hours). The compensation is paid directly to the employees on the top of the wage paid by the employer.

The amount of the compensation is 60% of the employee's average gross salary per calendar month but no more than EUR 1 000.

In total, the employee receives at least the minimum wage from the unemployment fund and the employer, i.e. EUR 584 per month (the employer pays at least EUR 200)[1]. If an employee received less than the minimum wage due to working part-time before the emergency, his or her previous income will be maintained.

The compensation is calculated based on data from the Tax and Customs Board. Only payments from which the unemployment insurance premium has been withheld will be considered. Calculations are based on the salary data from the past 12 months. Out of this data only the salary for the nine months before the last three months are taken into account and divided by 270. This way, the average daily salary is calculated and then multiplied by 30, giving the amount of the average monthly salary. In the case of an employee who has been paid less than nine months in the period prior to the last three months of employment or who has been paid only since 1 January 2021, the amount of remuneration actually paid, divided by the number of months actually worked. 


PART V – OLD AGE BENEFIT

Article 25

Each Contracting Party for which this part of the Code is in force shall secure to the persons protected the provision of old-age benefit in accordance with the following articles of this part.

Article 26

1. The contingency covered shall be survival beyond a prescribed age.

2. The prescribed age shall be not more than 65 years or than such higher age that the number of residents having attained that age is not less than 10 per cent of the number of residents under that age but over 15 years of age.

3. National laws or regulations may provide that the benefit of a person otherwise entitled to it may be suspended if such person is engaged in any prescribed gainful activity or that the benefit, if contributory, may be reduced, where the earnings of the beneficiary exceed a prescribed amount and, if non-contributory, may be reduced where the earnings of the beneficiary or his other means or the two taken together exceed a prescribed amount.

In 2021 the pension age is 64 years for both men and women. The pension is increasing gradually to 65 by 2026 for both men and women and thereafter is linked to increases in life expectancy. The qualification period is at least 15 years of pensionable service.

Article 27

The persons protected shall comprise:

a. prescribed classes of employees, constituting not less than 50 per cent of all employees; or

b. prescribed classes of the economically active population, constituting not less than 20 per cent of all residents; or

c. all residents whose means during the contingency do not exceed limits prescribed in such a manner as to comply with the requirements of Article 67.

A. The recourse is had to the sub-paragraph (b) of Article 27 of the Code.

B. In 2021, a person who has become 64 years old and whose length of employment in Estonia is at least 15 years is entitled to receive the old-age pension. One year towards the accumulation period of an insured person shall be calculated for the insured person for whom the pension insurance part of individually registered social tax has been paid or calculated pursuant to the Social Tax Act in an amount equal to at least the minimum wage for a year. Old-age pensions shall be granted to permanent residents of Estonia and aliens residing in Estonia on the basis of temporary residence permits or temporary right of residence.

National pension ensures the minimum pension for those people who have attained the age of old-age pension and who do not become entitled to old-age pension based on work contribution and who have been permanent residents of Estonia or have resided in Estonia on the basis of a temporary residence permit or temporary right of residence for at least five years immediately before making a pension claim. As of 01.04.2021, the amount of national pension is 255,18 euros per month and its payment will not be suspended or reduced, if the person is engaged with any kind of gainful activity. National pension is adjusted by a retirement index once a year.

C. Statistical information (Article 74):

a)      the number of economically active insured persons as of December 31, 2020 was 620,564 (data by Estonian Health Insurance Fund);

b)      the total population of Estonia as of January 1, 2021 was 1,330,068 (data by Statistics Estonia);

c)      number of economically active insured persons was 46.7% of total population in 2020.

a)       number of economically active insured persons as of December 31

2020

620 564

(Estonian Health Insurance Fund)

b)      total population of Estonia as of January 1

2021

1 330 068

(Statistics Estonia)

2020

1 328 889

(Statistics Estonia)

 

c)      Economically active insured persons per cent of total population

%

2020

46.7

D. Non-applicable

Article 28

The benefit shall be a periodical payment calculated as follows: a. where classes of employees or classes of the economically active population are protected, in such a manner as to comply either with the requirements of Article 65 or with the requirements of Article 66; b. where all residents whose means during the contingency do not exceed prescribed limits are protected, in such a manner as to comply with the requirements of Article 67.

A. Recourse is had to Article 66 of the Code with regard to the calculation of old-age pension.

As of April 1 2020, the base amount for pension was 215,5148 euros per month, the monthly national pension rate was 221,63 euros and the value of a year was 7,104 euros per month.

According to the Income Tax Act, income tax is charged in 2020 on the component of pension that exceeds 500 euros per month. From the year 2018 the basic exemption amount is increased for all citizens, also for pensioners, to 500 euros. An increased basic exemption will not be applied to pension and compensation anymore. 

The applicable overall tax-free amount can be divided into three major categories:

If your annual income is up to 14 400 euros or 1200 euros per month, you can use the maximum basic exemption that is 6000 euros per year or 500 euros per month.

If your monthly income is between 1200–2100 euros (annual income between 14 400–25 200 euros), your basic exemption will begin to increase and the closer it is to 2100 euros the lower it will be.

If your monthly income exceeds 2100 euros (over 25 200 euros per year), no basic exemption will be applied.

As of April 1 2021, the base amount for pension is 235,3079 euros per month, the monthly national pension rate is 255,18 euros and the value of a year is 7,206 euros per month.

According to the Income Tax Act, income tax is charged in 2021 on the component of pension that exceeds 500 euros per month.

In more detail:

On 1 April 2020, the base amount of pension was additionally increased after indexation by 7 euros. Following indexation, the base amount of pension totals €208.5 and the value of one year of pensionable service amounts to €7.104.  Additionally, the value of base amount was increased from €208.5 to €215.5 as a result of an extraordinary increase of €7.

This step was meant to reduce the at-risk-of-poverty rate (relative poverty) of old-age pensioners and improve their wellbeing. The additional increase in the base amount increased the pensions of all old-age pensioners as well as those receiving pensions for incapacity for work or survivor’s pension. Pensioners not active in the labor force benefited most from this.

On 1 April 2021, the additional increase in the base amount of the pension planned as a solidarity component increased the pensions of all old-age pensioners. The increase in the base amount of the pension affected almost 320,000 people, reduced the relative poverty rate of pensioners by an estimated 1.2 percentage points. There was also an increase in the supplementary child benefit, which provides additional income for pensioners who have raised one or more children for at least eight years and whose child was born before 2013.

Titles I and III Article 66

a. Regular unskilled male worker is defined as an unskilled male industry worker (ISCO-08 International Standard Classification of Occupations, occupation code 9).

Gross wage of a regular unskilled male worker is calculated and forecasted on the basis of gross hourly wage of a male worker in processing industry. Processing industry was chosen because it has been the industry with the largest number of employees (18.1% of all employees) for years (118.6 thousand employees in 2020).

b. In 2020, the average gross hourly wage of a male worker working in processing industry for full-time and part-time work was 8.80 euros (Statistics Estonia, database table PA5335). The calculated average gross hourly wage of a regular unskilled male worker for full-time and part-time work was 6 euros and 69 cents (i.e., 76% of the male worker's gross hourly wage in processing industry). The calculation is based on Statistics Estonia gender gap pay survey from October 2020 (PA5335) and October 2018 structure of earnings survey (gross hourly wage for workers with full-time and part-time work in processing industry by the occupation field, PA634). Thus, the calculated average gross monthly wage of a regular unskilled male worker was 1123.38 euros and the calculated net monthly wage was 966.35 euros (in 2020, the average working hours was 167.92 hours in a month based on the standard working hours). The annual basic exemption (non-taxable amount) for resident individuals is up to 6000 EUR per year, but decreasing depending on the total income amount. When taxable income per year exceeds 14 400€ the following formula for calculating the non-taxable amount applies: 6000-6000/10800x(amount of income – 14 400). If total amount of all income is 25 200 EUR in a year or more, there is no right to basic exemption at all. On a monthly basis the basic allowance is 500 EUR if taxable income does not exceed 1200 EUR per month. It is reduced linearly and reaches 0 EUR when taxable monthly income is more than 2100 EUR. The income tax rate was 20%, the unemployment insurance premium rate was 1.6% and the rate of contributions to the mandatory funded pensions (the second pillar of pension insurance) for people who had joined pension insurance was 2%.

c. According to the pension formula, in 2020 the old-age pension of a beneficiary with a pensionable period of 30 years was 215.5148 + 7.104 *30 = 428.63 euros.

According to the pension formula, in 2021 the old-age pension of a beneficiary with a pensionable period of 30 years is 235.3079 + 7.206 *30 = 451.49 euros.

d, e. The persons with pension insurance shall still not receive family benefit for their wife during their work or pension period.

f. In 2020, the old-age pension of a standard beneficiary (a man with a wife of pensionable age) formed (428.63+221.63)/966.35*100 = 67.3% of a regular unskilled male worker's net wage.

a) the old-age pension of a beneficiary with a pensionable period of 30 years, euros

the old-age pension with a pensionable period of 30 years

Pension components

Base part

National pension rate

Value of a year

2020

428,63

215,5148

221,63

7,104

(Social Insurance Board)

d, e) Gross and net monthly wage of a regular unskilled male worker in processing, euros

Gross wage

Net wage

2020

1123.38

966.35

f) Old-age pension of a standard beneficiary (a man with a woman of pensionable age) per cent of a regular unskilled male worker

%

2020

67.3

Changes in pension formula

From 2021 onwards, the fourth part of the pension formula, which is called the compound part, will be collected. The compound part is a symbiosis of length of service and insurance components. As a result of the change in the pension formula, I pillar pensions will not become as unequal as they would have become only with a three-part pension formula.

Second improvement to Estonian pension system is the flexible retirement concept. From 2021 onwards, people can choose the most suitable time for retirement, suspend their pension if they wish, or take half the pension. The concept of a flexible pension is based on actuarial neutrality: the size of the entire pension asset is the same regardless of the time of retirement, the suspension or partial withdrawal of the pension.

Article 29

1. The benefit specified in Article 28 shall, in a contingency covered, be secured at least: a. to a person protected who has completed, prior to the contingency, in accordance with prescribed rules, a qualifying period which may be 30 years of contribution or employment, or 20 years of residence; or b. where, in principle, all economically active persons are protected, to a person protected who has completed a prescribed qualifying period of contribution and in respect of whom while he was of working age, the prescribed yearly average number of contributions has been paid.

2. Where the benefit referred to in paragraph 1 of this article is conditional upon a minimum period of contribution or employment, a reduced benefit shall be secured at least:

a. to a person protected who has completed, prior to the contingency, in accordance with prescribed rules, a qualifying period of 15 years of contribution or employment; or

b. where, in principle, all economically active persons are protected, to a person protected who has completed a prescribed qualifying period of contribution and in respect of whom, while he was of working age, half the yearly average number of contributions prescribed in accordance with paragraph 1.b of this article has been paid.

3. The requirements of paragraph 1 of this article shall be deemed to be satisfied where a benefit calculated in conformity with the requirements of Part XI but at a percentage of ten points lower than shown in the Schedule appended to that part for the standard beneficiary concerned is secured at least to a person protected who has completed, in accordance with prescribed rules, ten years of contribution or employment, or five years of residence.

4. A proportional reduction of the percentage indicated in the Schedule appended to Part XI may be effected where the qualifying period for the benefit corresponding to the reduced percentage exceeds ten years of contribution or employment but is less than 30 years of contribution or employment; if such qualifying period exceeds 15 years, a reduced benefit shall be payable in conformity with paragraph 2 of this article.

5. Where the benefit referred to in paragraphs 1, 3 or 4 of this article is conditional upon a minimum period of contribution or employment, a reduced benefit shall be payable under prescribed conditions to a person protected who, by reason only of his advanced age when the provisions concerned in the application of this part come into force, has not satisfied the conditions prescribed in accordance with paragraph 2 of this article, unless a benefit in conformity with the provisions of paragraphs 1, 3 or 4 of this article is secured to such person at an age higher than the normal age.

1. In case of old-age pension, the pension qualifying period is at least 15 years of the person earned in Estonia.

A pension qualifying period is a period during which an insured person is engaged in an activity which grants the right to receive a state pension. It shall be divided as follows:

1) the years of pensionable service which are calculated until 31 December 1998;

2) the accumulation period which is calculated as of 1 January 1999.

Years of pensionable service (period of employment)

Years of pensionable service include the period of employment when the employer was obliged to pay social tax. The period mentioned in subsection § 28 (2) of the State Pension Insurance Act shall also be included in the years of pensionable service. Years of pensionable service shall be calculated to the accuracy of a day. Compliance with the requirement for a pension qualifying period shall be determined on the basis of unrounded years of pensionable service.

Accumulation period (period of making contributions)

As of 1 January 1999, accumulation period shall be calculated as a pension qualifying period. One year towards the accumulation period of an insured person shall be calculated for the insured person for whom the pension insurance part of individually registered social tax has been paid or calculated pursuant to the Social Tax Act in an amount equal to at least the minimum wage for a year. Up to one year of accumulation period shall be calculated for one calendar year.

2. Nonapplicable. In Estonia, a qualifying period is 15 years of the pension accumulation period which is less than the requirement provided for in subsection 1 of Article 28 of the Code (30 years). Pension accumulation period is not calculated on the basis of the average contribution, but on the basis of the contribution calculated on the minimum rate of salary, which is also more favourable to the insured person than the requirement provided for in subsection 1 b of Article 28 of the Code. Upon attainment of fifteen years of qualifying period, old-age benefit shall be paid out in full.

3. Non-applicable

4. Non-applicable

5. Non-applicable

Article 30

The benefits specified in Articles 28 and 29 shall be granted throughout the contingency.

The old-age benefit is granted throughout the contingency and cannot be suspended.

Changes made due to the COVID-19 crisis:

Second pillar social tax suspension

Estonia temporarily suspends the payment of employer contributions to the second pension pillar, except for employees born between 1942 and 1960. This suspension happens from 1 July 2020 until 31 August 2021. Members had the option of stopping their contributions as well by applying for a suspension in October 2020. The suspension of employee contributions applies between 1 December 2020 and 31 August 2021.

In 2023-2024, the state budget will finance the missing 4% employer contributions for every month employees continue to make their 2% contributions between 1 July 2020 and 31 August 2021. This amount will be paid into second pillar pension plans. The state will also finance a return on these missing contributions. This return will correspond to the average return of second pillar pension plans between 1 July 2020 and 31 December 2022.

 

Additional information requested by the supervisory bodies of the Code

The Committee of Ministers decides to invite the Government of Estonia concerning Part XI (Standards to be complied with by periodical payments), Articles 65 and 66 of the Code, to specify in the next report, how and with which coefficient the additional insurance component of the pension of a standard beneficiary is calculated and whether the corresponding wage constitutes a net wage (after deduction of taxes) or a gross wage. In the first alternative, the Committee of Ministers requests the Government to specify which amounts have been deducted from the amount of the gross wage in order to attain a net wage.

Explanation on the calculation of net wage:

1.      Firstly, the basic exemption (non-taxable amount) is calculated based on gross wage and  basic exemption calculation formula. The annual basic exemption (non-taxable amount) for resident individuals is up to 6000 EUR per year, but decreasing depending on the total income amount. When taxable income per year exceeds 14 400€ the following formula for calculating the non-taxable amount applies: 6000-6000/10800×(amount of income employee’s social security contributions14 400). If total amount of all income is 25 200 EUR in a year or more, there is no right to basic exemption at all. This means that on a monthly basis the basic allowance is 500 EUR if taxable income does not exceed 1200 EUR per month. It is reduced linearly and reaches 0 EUR when taxable monthly income is more than 2100 EUR. If the gross wage is 1123.38 euros in a month, then gross wage is lower than 1200 euros and the monthly basic exemption is 500 euros.

2.      Secondly, the amount of the employee social security contributions is calculated (the unemployment insurance rate is 1.6% and it is assumed that the person has joined the 2nd pillar of the pension and pays 2%):

1123.38 × 1.6% + 1123.38 ×  2%=40.44 euros

3.      Thirdly, the amount of the income tax (rate is 20%) is calculated based on the gross wage, employee social security contributions and basic exemption as following:

(1123.3840.44500) × 20%=116.59 euros

4.      Finally, the net wage is calculated (gross wage-employee’s minus social security contributions minus income tax):

1123.3840.44116.59=966.35 euros.


PART VII – FAMILY BENEFIT

Article 39

Each Contracting Party for which this part of the Code is in force shall secure to the persons protected the provision of family benefit in accordance with the following articles of this part.

Article 40

The contingency covered shall be responsibility for the maintenance of children as prescribed.

All permanent residents of Estonia or aliens residing in Estonia on the basis of temporary residence permits or temporary right of residence are entitled to receive family benefit. Employment or the amount of income are not prerequisites for eligibility to receive family benefit. Only family benefit, which amount depends on the previous income of the beneficiary, is parental benefit, but also the persons who have not worked in the period used as a basis for the calculation of the amount of benefit are entitled to receive the minimum amount of parental benefit.

The following table summarizes the condition for payment of periodical benefits set out in Article 42 (amounts of benefits set out in Article 42)

Type of benefit

General payment procedure

Monthly family benefits aimed at ensuring to the families with children a partial compensation of the expenses related to fostering, raising and education of children. The amount of benefit does not depend on the employment or income of the beneficiary.

Child allowance, single parent’s child allowance, conscript’s child allowance or child allowance of person in alternative service

Allowance shall be paid to one of the parents who raises a child of up to 16 years of age Payment of allowance shall continue when a child attains 16 years of age until the child attains 19 years of age, only if the child continues to study in a basic school, upper secondary school or in formal vocational education.

The amount of child allowance is differentiated according to the number of children in the family, the amount of the remaining benefits remains the same.

Child care allowance

For children born on 01.09.2019 or later child care allowance will no longer be paid.

- We will grant and keep paying child care allowance pursuant to the old procedure to all families where a child was born on 31 August 2019 at the latest.

- We will also keep paying child care allowance to all who were already being paid child care allowance on 31 August 2019 or to whom we granted the allowance earlier.

- We will keep paying child care allowance until the expiry of the right to the allowance or until 31 August 2024 at the latest.

Guardianship allowance[2]

Allowance shall be paid to the guardian (natural person) of a child under guardianship and without parental care. Allowance shall be paid until termination of guardianship. If guardianship terminates when a child attains 18 years of age, the allowance shall be paid until the end of the school year when the child attains 19 years of age.

Allowance for families with many children (from 1 July 2017)

Allowance shall be paid to one of the parents or the guardian or caregiver who is raising in his/her family three or more children who are up to 16 years of age. Upon establishing the allowance, the children exceeding the mentioned age limit shall be taken into account only if they continue to study in a basic school, upper secondary school or in formal vocational education.

Allowance for multiple birth of three or more children (from 1 March 2018)

Allowance shall be paid from the birth of the children to a parent, who is raising triplets or more children of multiple birth. The right to receive this allowance lasts until the day the children turn 18 months.

Monthly family benefit aimed at compensating the income not received because of raising a child being below the age of three years. To the person, who has not received income, shall be ensured the income in the amount of the benefit.

Parental benefit

Payment of parental benefit commences as of the date following the final date of the certificate for maternity leave or a certificate for adoption leave and the benefit shall be granted for the period of 435 days as of the date on which the right to receive the benefit arises. If the mother of the child does not have the right to receive maternity benefit, parental benefit shall be granted until the day the child attains 18 months of age.

As of 1 July 2020 a new type of parental benefit has been introduced - an additional parental benefit for fathers. The benefit is paid during paternity leave for up to 30 days. Before the amendment, the paternity leave was 10 workdays and the compensation for that time was not part of the parental benefit system. The goal of the amendment is to promote greater involvement of fathers in raising their children.

The payment period for the parental benefit has been made more flexible. As of 1 July 2020, the payments of the parental benefit may, according to the parent’s request, be suspended and resumed by calendar months until the child reaches 3 years of age. The amendment applies to those who are just beginning to receive the parental benefit as well as those who have already been receiving the benefit. Suspension and continuation of parental benefit may not be granted for a period shorter than one calendar month, except for the month when parental benefit begins and ends. When resuming the payments of the parental benefit, the amount of the parental benefit will not be recalculated.

As of 1 April 2022, the payment can be suspended and resumed by calendar days.

Article 41

The persons protected shall comprise, as regards the periodical payments specified in Article 42: a. prescribed classes of employees, constituting not less than 50 per cent of all employees; or b. prescribed classes of the economically active population, constituting not less than 20 per cent of all residents.

A. The recourse is had to the sub-paragraph (b) of Article 41 of the Code

B. Protected persons are all permanent residents of Estonia or aliens residing in Estonia on the basis of temporary residence permits or temporary right of residence.

C. Statistical information Title II Article 74:

Title II of Article 74 is not the most suitable for getting statistical data on persons affected by the State Family Benefits Act. Therefore, in order to show the fulfilment of the requirements in Article 41 of the Code, the number of covered persons shall be deemed equal to the total number of male population of economically active age (15–64).

a) In 2021, the number of Estonian male population aged 15–64 was 424,241 (Statistics Estonia);

b) In 2021, the total population of Estonia (annual average) was 1,330,068 (Statistics Estonia);

c) The number of covered persons amounted to 31.9% of the total population.

a) number of Estonian male population aged 15–64 (annual average)

2020

424,375

(Statistics Estonia)

b) total population of Estonia (annual average)

2020

1,329,479

(Statistics Estonia)

c) covered persons per cent of total population

%

2020

31.9%

Article 42

The benefit shall be: a. a periodical payment granted to any person protected having completed the prescribed qualifying period; or b. the provision to or in respect of children of food, clothing, housing, holidays or domestic help; or c. a combination of the benefits provided for in sub-paragraphs a and b of this article.

The recourse is had to the sub-paragraph (a) of Article 42 of the Code

A. Gross monthly wage of a regular unskilled male worker was 1123,38 euros in 2020 (see information provided under Article 28).

B. The total amount of family benefits (excluding parental benefits and (one-time) childbirth allowance) for 2020 was 304.141 million euros (data by the Statistics Estonia, Ministry of Social Affairs calculations) which makes on average 25.34 million euros per month.

B. i. The number of children (average, entitled to payment of child allowance) was 232,186 in 2020 (data by Statistics Estonia, children 0–15 years of age);

ii. In 2020, the total value of family benefits was 9.72% of the multiplication of the gross wage of a regular unskilled male worker by the children of all residents.

A. Gross monthly wage of a regular unskilled male worker, euros

Euros

2020

1123,38

(Statistics Estonia)

B. total amount of family benefits, millions of euros

millions of euros

2020

304.141

Ministry of Social Affairs

C.

i. Number of children entitled to payment of child allowance

Children 0-15 y.o. (annual average)

2020

232,186

Statistics Estonia

ii. total value of family benefits per cent of t of the multiplication of the gross wage of a regular unskilled male worker by the children of all residents

%

2020

9,72

Periodical benefits and their amounts:

Type of benefit

Amount of benefit

Child allowance

The amount of the child allowance depends on the number of children in the family:

-          family with one or two children eligible for the child allowance - 60 euros per child per month;

-          family with three or more children eligible for the child allowance - 100 euros per child per month starting from the third child.

Single parent’s child allowance

19,18 euros per month.

Child care allowance

For children born on 01.09.2019 or later child care allowance will no longer be paid.

- We will grant and keep paying child care allowance pursuant to the old procedure to all families where a child was born on 31 August 2019 at the latest.

- We will also keep paying child care allowance to all who were already being paid child care allowance on 31 August 2019 or to whom we have granted the allowance earlier.

- We will keep paying child care allowance until the expiry of the right to the allowance or until 31 August 2024 at the latest.

One parent in the family is entitled to receive child care allowance (after the end of the parental benefit payments) if the family has:

-          an up to 3-year-old child: 38.36 euros per                     month per each up to 3-year-old child.

In addition child care allowance is paid for 3 to 8-year-old children if:

-          the family has one up to 3-year-old child, and another child between 3 and 8 – 19.18 euros also per the 3-8-year-old per month;

-          the family has 3 or more children eligible for the child allowance – 19.18 euros per month for each 3-8-year-old.

Guardianship allowance

The allowance of 240 euros is paid monthly for each child under guardianship.

Allowance for families with many children

For the family with three to six children - 300 euros per month.

For the family with seven or more children - 400 euros per month.

Allowance for multiple birth of three or more children

1000 euros per month is paid from the birth of the children to a parent, who is raising triplets or more children of multiple birth. The right to receive this allowance lasts until the day the children turn 18 months.

Conscript’s child allowance

The allowance is 300 euros per month for each child, until the end of the parent’s service in the Defence Forces. 

The benefit will rise from 300 euros to 900 euros starting from the 1 of July 2021.

Parental benefit

The parental benefit amount is calculated separately for each recipient, depending on their previous income. Average income is calculated based on the amount of social tax declared and paid for the applicant by the employer.

When calculating the amount of parental benefit 9 months preceding the month of birth of the child is subtracted and the amount of benefit is calculated on the basis of income earned over the course of 12 months preceding those 9 months.

The parental benefit is also paid if the parent did not earn any income taxable with the social tax. In this case, the benefit is paid in the amount of the minimum wage that applied on January 1st of the previous calendar year, which is 584 euros per month in 2021.

If the parent earned income but the average monthly income was below the minimum salary rate, they will be paid the parental benefit equal to the minimum salary rate. The minimum monthly salary rate in 2021 is 584 euros per month.

The maximum parental benefit amount is three times the average Estonian salary of the year before last year. In 2020 the maximum parental benefit is 3821.55 euros. Parental benefit is a taxable income.

Article 43

The benefit specified in Article 42 shall be secured at least to a person protected who, within a prescribed period, has completed a qualifying period which may be one month of contribution or employment, or six months of residence, as may be prescribed.

In case of family benefits, the qualifying period is not required. All the residents are entitled to receive the benefits as of the first day of registration of residence in Estonia (entering the data of a person’s residence in the population register).

Article 44

The total value of the benefits granted in accordance with Article 42 to the persons protected shall be such as to represent 1.5 per cent of the wage of an ordinary adult male labourer as determined in accordance with the rules laid down in Article 66, multiplied by the total number of children of all residents.

Article 45

Where the benefit consists of a periodical payment, it shall be granted throughout the contingency.

Payment of family benefits shall be suspended, if:

- the recipient of benefit does not fulfil the obligation to raise and care for the child. Payment of the prescribed benefits shall continue to the actual person raising the child, who can be a spouse of a parent, foster parent, guardian or caregiver of the child. Both the suspension and continuance of the benefit shall take place on the basis of the order of a rural municipality or city government or court judgment;

- if a judgment by which a person is sentenced to imprisonment has entered into force and the sentence of imprisonment is enforced. Payment of benefits shall be suspended for the time of the serving of the punishment. In general, payment of the prescribed benefits shall continue to the actual person raising the child, who can be other parent, foster parent, guardian or caregiver of the child. The parental benefit that is dependent on the previous income of the recipient is an exception here;

- it becomes evident that the child does not live with the recipient of family benefit, i.e. the recipient of family benefit is not actually raising the child.

Changes made due to the COVID-19 crisis:

1)      Amendments have been made to shorten the applications processing time for some family benefits, so that families can receive payments earlier:

a.    As of 7 May 2020, in case there is a difference in the amount of parental benefit and maternity benefit and the mother is eligible for a compensation, it is paid out immediately after the child is born and the parental benefit has been applied for by the mother. The compensation is paid out as a single payment. Previously the mother received the compensation with the first parental benefit payment, usually 4-5 months after the birth of the child.

b.    The waiting period for maintenance allowance has been reduced from four months to one month. As of 1 July 2020, maintenance allowance during enforcement proceedings shall be paid if one month has passed from the beginning of enforcement proceedings and if within the next calendar month the alimony is not paid to the child. The maximum amount of maintenance allowance has not changed and remains up to 100 euros per calendar month per child. If the court ruling imposed a smaller alimony, then that amount is paid.

2)      Calculation of parental benefit upon successive birth of children 

As of 1 July 2020 the protected period of consecutive births is extended from two and a half to three years. If the next child is born within three years’ time, the amount of parental benefits for the next child will remain at least the same as it was for the previous child. Receiving taxed income in between the consecutive births is not required to qualify for the benefit. The aim of the amendment is to better support the families with children and increase the birth rate.

3)          Calculation of parental benefit in case of unemployment.

As of 1 July 2021 during the next 3 years period (the amendment shall be applied retroactively in the case of children born during the period from 1 January 2021 to 31 December 2023) in case of unemployment, the time of unemployment will not be taken into account when calculating the amount of parental benefit. The amendment will ensure that parental benefit will be calculated according to the taxed income preceding unemployment and the parents will not lose out because of COVID-19.

The aims are to prevent the negative impact of the pandemic on fertility and to increase the confidence and wellbeing of families with children. This is temporary amendment and after an impact assessment we will make further decisions.

4)      Temporary allowance for parents of children with special needs

The closure of educational establishments laid even greater burden on parents of children with special needs who require further monitoring and support in both studying and personal hygiene procedures at home. Therefore, the Government made available temporary special allowance to provide replacement income for the parent who due to the need to care for the child with special needs was temporarily forced to be absent from work. The allowance was granted for a parent who raises a child with severe or profound disability, child who has weakened immunity or a child with certain special educational need, whereas the parent had to be registered to unpaid leave. The amount of the allowance was 70% of the average wage of the parent. The measure was applicable until the end of the emergency period.


PART VIII – MATERNITY BENEFIT

Article 46

Each Contracting Party for which this part of the Code is in force shall secure to the persons protected the provision of maternity benefit in accordance with the following articles of this part.

Article 47

The contingencies covered shall include pregnancy and confinement and their consequences, and suspension of earnings, as defined by national laws or regulations resulting therefrom.

Article 48

The persons protected shall comprise: a. all women in prescribed classes of employees, which classes constitute not less than 50 per cent of all employees, and, for maternity medical benefit, also the wives of men in these classes; or b. all women in prescribed classes of the economically active population, which classes constitute not less than 20 per cent of all residents, and, for maternity medical benefit, also the wives of men in these classes.

A. The recourse is had to the sub-paragraph (b) of Article 48 of the Code

B. Insured persons are set out in Part B of Article 15.

Pursuant to subsection § 50 (1) of the Health Insurance Act, the benefit for temporary incapacity for work, including maternity benefit, is financial compensation paid by the health insurance fund to an insured person on the basis of a certificate of incapacity for work in cases where the person does not receive income subject to individually registered social tax due to a temporary release from the their duties or economic or professional activity.

Pursuant to subsection § 51 (2) of the Health Insurance Act, the insured event in respect of which maternity benefit is paid to an insured person is the pregnancy and maternity leave of the insured person and without pregnancy and maternity leave to the members of management or controlling bodies of legal persons and persons receiving remuneration and service fees based on contract under law of obligations, self-employed persons and a spouse participating in the operation of his/her undertaking. The basis for the calculation of maternity benefit is given in § 58 of the Health Insurance Act.

Maternal benefit will not be paid to persons covered by insurance on the grounds specified in clauses 5 (2) 3) (persons for whom social tax is paid by state, local authority or artistic association) and 6) (persons receiving an unemployment insurance benefit on the basis of the Unemployment Insurance Act) or subsection (4) (persons considered equal to insured persons) of the Health Insurance Act or to persons considered equal to insured persons on the basis of a contract. The aforementioned persons are entitled to receive all other health insurance benefits equal to the persons receiving maternal benefit.

C. Updated statistical information

a) In 2021, the number of Estonian female population aged 15–64 was 416,715 (Statistics Estonia);

b) In 2021, the total population of Estonia (annual average) was 1,330,068 (Statistics Estonia);

c) The number of covered persons amounted to 31.3% of the total population.

a) number of Estonian female population aged 15–64 (annual average)

2020

418,097

(Statistics Estonia)

b) total population of Estonia (annual average)

2020

1,329,479

(Statistics Estonia)

c) covered persons per cent of total population

%

2020

31,4%

D. All pregnant women living in Estonia have an individual right to medical care, this right is not related to the insurance status of their spouses. Pursuant to clause § 5 (4) 1) of the Health Insurance Act, pregnant women, whose pregnancy has been identified by a doctor or a midwife and for whom are ensured all the health insurance benefits, except benefits for temporary incapacity for work, including maternal benefit in case they are not working, are considered to be equal to insured persons.

E. Non-applicable

Article 49

1. In respect of pregnancy and confinement and their consequences, the maternity medical benefit shall be medical care as specified in paragraphs 2 and 3 of this article.

2. The medical care shall include at least: a. pre-natal, confinement and post-natal care either by medical practitioners or by qualified midwives; and b. hospitalisation where necessary.

3. The medical care specified in paragraph 2 of this article shall be afforded with a view to maintaining, restoring or improving the health of the woman protected and her ability to work and to attend to her personal needs.

4. The institutions or government departments administering the maternity medical benefit shall, by such means as may be deemed appropriate, encourage the women protected to avail themselves of the general health services placed at their disposal by the public authorities or by other bodies recognised by the public authorities.

A. Pursuant to § 29 of the Health Insurance Act, the health insurance fund will pay for health services if the services are entered in the list of health services of the health insurance fund and the provision thereof is therapeutically justified. Health Insurance Fund will pay for the services to the health service provider on the basis of a contract for financing medical treatment.

The list of the services funded by Estonian Health Insurance Fund is provided in Regulation no. 138 of the Government of the Republic of December 18, 2015 “List of Health Services of Estonian Health Insurance Fund”. The list includes, inter alia, monitoring of pregnancy, obstetrical care and gynaecological examinations and procedures and postnatal services.

B. Insured persons is not obliged to pay for health services. Pursuant to the Health Insurance Act, it is not allowed to charge from pregnant woman a visit fee upon provision of outpatient specialised medical care and home visit, and it is also not allowed to charge an in-patient fee upon provision of in-patient specialised medical care in connection with pregnancy or delivery.

C. Please see points A and B above

Article 50

In respect of suspension of earnings resulting from pregnancy and from confinement and their consequences, the benefit shall be a periodical payment calculated in such a manner as to comply either with the requirements of Article 65 or with the requirements of Article 66. The amount of the periodical payment may vary in the course of the contingency, subject to the average rate thereof complying with these requirements.

A. For the calculation of the in cash (maternity) benefit the recourse is had to the Article 65 of the Code.

B. Updated statistical information Titles I and V, Article 65 of the Code

a. Maternity benefit is subject to income tax. In 2020 and in 2021, the income tax rate is 20%. The annual basic exemption (non-taxable amount) for resident individuals is up to 6000 EUR per year but decreasing depending on the total income amount. When taxable income per year exceeds 14 400€ the following formula for calculating the non-taxable amount applies: 6000-6000/10800x(amount of income – 14 400). If total amount of all income is 25 200 EUR in a year or more, there is no right to basic exemption at all. This means that on a monthly basis the basic allowance is 500 EUR if taxable income does not exceed 1200 EUR per month. It is reduced linearly and reaches 0 EUR when taxable monthly income is more than 2100 EUR.

In 2020, the minimum wage was 584 euros per month in case of full-time work and accordingly the upper limit for the income taxable with social tax for sole proprietors was 5,840 euros per month. As of January 1 2021, the minimum monthly wage for full-time work is 584 euros per month and accordingly the upper limit for the income taxable with social tax for sole proprietors is 5,840 euros per month.

b, c. In 2020, the pursuant to Article 65 (6) (c) were 1,684.61 euros.

Gross earnings of a regular skilled male worker, euros

Gross earnings of a regular skilled male worker, euros

2020

1,684.61

(Social Insurance Board)

d. In 2020, the standard beneficiary’s maternity benefit per month was:

1,00 * 1684.61 = 1684.61 euros.

Standard beneficiary’s maternity benefit per month and maternity benefit gross replacement rate

Standard beneficiary’s maternity benefit per month, euros

maternity benefit gross replacement rate, %

2020

1684.61

100

g. Standard beneficiary’s maternity benefit gross replacement rate

1684.61/1684.61=100%

Pursuant to § 59 of the Employment Contracts Act, a woman has the right to pregnancy and maternity leave of 140 calendar days. The leave becomes collectible at least 70 calendar days before the estimated date of birth determined by a doctor or midwife. If a woman starts using pregnancy and maternity leave less than 30 days before the estimated date of birth determined by a doctor or midwife, the pregnancy and maternity leave is shortened by the respective period.

Pursuant to § 58 of the Health Insurance Act, pregnant woman has the right to receive maternity benefit on the basis of a certificate for maternity leave for 140 calendar days if her pregnancy and maternity leave commences at least 30 calendar days before the estimated date of delivery as determined by a doctor or midwife. The number of the days by which the pregnancy and maternity leave of the woman commences after the term of 30 calendar days will be deducted from the period for which the woman has the right to receive maternity benefit.

If a pregnant woman has been provided with work corresponding to her state of health or the conditions of service of a pregnant woman have been eased during her pregnancy, she will have the right to receive the maternity benefit for 140 calendar days if the pregnancy and maternity leave commences at least 70 calendar days before the estimated date of delivery as determined by a doctor or midwife. The number of the days by which the pregnancy and maternity leave of the woman commences after the term of 70 calendar days will be deducted from the period for which the woman has the right to receive maternity benefit.

A person specified in clauses 5 (2) 4) and 5) and in subsections (3) and (31) of the Health Insurance Act has the right to receive the maternity benefit for 140 calendar days on the basis of a certificate for maternity leave. The number of the days by which the certificate for maternity leave is issued later than the term of 30 calendar days will be deducted from the period for which the woman has the right to receive the maternity benefit.

Maternity benefit shall be calculated pursuant to § 55 of the Health Insurance Act (see Article 16). Health Insurance Fund shall pay maternal benefit as of the first day of release from employment, with the rate of benefit of 100% for one calendar day of the average income of one calendar day for up to 140 calendar days. Maternal benefit is taxable with income tax, income tax rate is 20%. No maximum limit of salary is established for the calculation of maternity benefit.

Article 51

The benefit specified in Articles 49 and 50 shall, in a contingency covered, be secured at least to a woman in the classes protected who has completed such qualifying period as may be considered necessary to preclude abuse, and the benefit specified in Article 49 shall also be secured to the wife of a man in the classes protected where the latter has completed such qualifying period.

Please see Article 17 for terms of commencement of insurance protection.

If the data necessary for an entry on commencement of the insurance cover of a person to be made in the health insurance database are submitted to the health insurance fund during the period of validity of the insurance cover of the person, the insurance cover will continue on the new basis without interruption.

Article 52

The benefit specified in Articles 49 and 50 shall be granted throughout the contingency, except that the periodical payment may be limited to 12 weeks, unless a longer period of abstention from work is required or authorised by national laws or regulations, in which event it may not be limited to a period less than such longer period.

1. Please refer to the point B of the Article 50 of the Code

2. Pursuant to clause § 60 (1) 5) and subsection (2) of the Health Insurance Act, the insured person loses the right to maternal benefit, if the insured person receives income subject to social tax specified in clauses 2 (1) 1) or 3) of the Social Tax Act for the period in question.

Changes made due to the COVID-19 crisis:

There are no changes made to the maternity leave and benefit system with regard to the COVID-19 crisis.


PART IX – INVALIDITY BENEFIT

Article 53

Each Contracting Party for which this part of the Code is in force shall secure to the persons protected the provision of invalidity benefit in accordance with the following articles of this part.

Article 54

The contingency covered shall include inability to engage in any gainful activity, to an extent prescribed, which inability is likely to be permanent or persists after the exhaustion of sickness benefit.

Benefit for incapacity for work (pension for incapacity for work) shall be granted to the persons between the age of 16 and the pensionable age and persons who are declared permanently incapacitated for work with a 40 to 100 per cent loss of capacity for work.

Since July 1, 2016, Estonia has implemented new work ability support system (work ability reform). Benefit for limited work ability (work ability allowance) shall be granted to the persons with partial or no ability for work between the age of 16 and the pensionable age. Work ability reform replaced incapacity for work pension with work ability allowance. The latter’s amount is not linked to a person’s previous income, nor to the employment record.

Work ability allowance daily rate (as of April 1, 2021) is 15,13 euros. The effective allowance amount is:

¾     57% of daily rate in case of partial work ability – 8,6241 euros a day or ca 258,72 euros a month;

¾     100% of daily rate in case of no work ability – 15,13 euros a day or ca 453,90 euros a month.

If the income of a person with partial or no work ability during the calendar month preceding the payment of work ability allowance exceeds 90 times the daily rate (1361,70 euros) in force, the amount of his or her allowance shall be recalculated by reducing his or her allowance for the month of payment of work ability allowance by an amount which is half of the difference between his or her income and 90 times the daily rate. If the recipient of work ability allowance has proved that the income of the recipient during the calendar month preceding the payment of work ability allowance exceeded 90 times the daily rate in force because of the time of payment of the holiday pay, the sickness benefit paid by the employer or the benefit for temporary incapacity for work or because of the time of payment of remuneration or allowance which changed for a reason independent of the recipient of work ability allowance, income is deemed to be received in the calendar month when it would have been paid had the specified circumstances not occurred.

If the recipient of work ability allowance has proved that the recipient provided services on the basis a contract under the law of obligations with the duration of over one month and the recipient was paid remuneration for fewer months than the duration of the contract, the unemployment insurance fund may divide the amount of the paid remuneration by the number of the calendar months of the duration of the contract.

Similarly, to state pension’s daily rate of work ability allowance indexed on yearly basis on April 1, which presumably raises the rate each year. Unlike state pensions work ability allowance is not taxed with income tax.

Article 55

The persons protected shall comprise: a. prescribed classes of employees, constituting not less than 50 per cent of all employees; or b. prescribed classes of the economically active population, constituting not less than 20 per cent of all residents; or c. all residents whose means during the contingency do not exceed limits prescribed in such a way as to comply with the requirements of Article 67.

A. The recourse is had to the sub-paragraph (b) of Article 55 of the Code

B. All permanent residents of Estonia and aliens residing in Estonia on the basis of temporary residence permits or temporary right of residence between the age of 16 and the pensionable age.

C. Please refer to the information provided under Article 27

D. Non-applicable

Article 56

The benefit shall be a periodical payment calculated as follows: a. where classes of employees or classes of the economically active population are protected, in such a manner as to comply either with the requirements of Article 65 or with the requirements of Article 66; b. where all residents whose means during the contingency do not exceed prescribed limits are protected, in such a manner as to comply with the requirements of Article 67.

A. The recourse is had to the Article 66 of the Code

The national pension rate is the minimum guarantee in determination of pension for incapacity for work. Starting with April 1, 2020, the national pension rate was 221,63 euros per month. Starting with April 1, 2021, the national pension rate is 225,18 euros per month.

B. In 2020, the old-age pension for a person with 30 years of pensionable service is 428,63 euros per month. In 2021, the old-age pension for a person with 30 years of pensionable service was 451,49 euros per month (see information under Article 28).

For the taxation of all state pensions (including pensions for incapacity for work), see information under Article 28.

Titles I and II, Article 66

a. For the selection of a regular unskilled male worker, see information under Article 28.

b. In 2020, the gross wage for a regular unskilled male worker was 1123 euros and 38 cents and the net wage was 966 euros and 35 cents (see also information under Article 28).

c. In 2020, the pension for incapacity for work for a standard beneficiary (a person totally incapacitated for work) was at least 428.63 euros.

d, e. In 2020, the family benefit sum paid for a standard beneficiary with two children was 120 euros per month. Payment of family benefits is not related to the parents working or receiving other social security benefits, i.e. the same family benefit is paid both while working and during periods of incapacity for work. Payment of family benefits is not related to the parents working or receiving other social security benefits, i.e. the same family benefit is paid both while working and during periods of incapacity for work.

f. In 2020, the standard beneficiary’s pension for incapacity for work amounted to:

(428.63+ 120.00) / (966.35+ 120.00)*100 = 50.5% of a regular unskilled male worker’s net wage.

a. Gross and net monthly wage of a regular unskilled male, euros

Gross and net monthly wage of a regular unskilled male worker, euros

Gross wage

Net wage, euros

2020

1123.38

966.35

Statistics Estonia

b. Pension for incapacity for work for a standard beneficiary (a person totally incapacitated for work), euros

euros

2020

428.63

Social Insurance Board

d, e. Family benefits for a standard beneficiary with two children, euros

Euros

2020

120

Ministry of Social Affairs

f. Pension for incapacity for work for a standard beneficiary per cent of a regular unskilled male worker net monthly wage, %

%

2020

50.5

Article 57

1. The benefit specified in Article 56 shall, in a contingency covered, be secured at least: a. to a person protected who has completed, prior to the contingency, in accordance with prescribed rules, a qualifying period which may be 15 years of contribution or employment, or 10 years of residence; or b. where, in principle, all economically active persons are protected, to a person protected who has completed a qualifying period of three years of contribution and in respect of whom, while he was of working age, the prescribed yearly average number of contributions has been paid.

2. Where the benefit referred to in paragraph 1 of this article is conditional upon a minimum period of contribution or employment, a reduced benefit shall be secured at least: a. to a person protected who has completed, prior to the contingency, in accordance with prescribed rules, a qualifying period of five years of contribution or employment; or b. where, in principle, all economically active persons are protected, to a person protected who has completed a qualifying period of three years of contribution and in respect of whom, while he was of working age, half the yearly average number of contributions prescribed in accordance with paragraph 1.b of this article has been paid.

3. The requirements of paragraph 1 of this article shall be deemed to be satisfied where a benefit calculated in conformity with the requirements of Part XI but at a percentage of ten points lower than shown in the Schedule appended to that part for the standard beneficiary concerned is secured at least to a person protected who has completed, in accordance with prescribed rules, five years of contribution, employment or residence.

4. A proportional reduction of the percentage indicated in the Schedule appended to Part XI may be effected where the qualifying period for the pension corresponding to the reduced percentage exceeds five years of contribution or employment but is less than 15 years of contribution or employment; a reduced benefit shall be payable in conformity with paragraph 2 of this article.

1. The recourse is had to the sub-paragraphs 1 and 2 of the Article 57 of the Code

In case of benefit for incapacity for work, the qualifying period is a pension qualifying period of the provider, the rules of which calculation have been set out under Article 29 of part V (old-age benefit) of this report.

The required pension qualifying period depends on the person’s age for the time of declaring the person permanently incapacitated for work:

Age in years

Required pension qualifying period

16-24

No requirement for length of service

25-26

1

27-28

2

29-30

3

31-32

4

33-35

5

36-38

6

39-41

7

42-44

8

45-47

9

48-50

10

51-53

11

54-56

12

57-59

13

60-62

14

In case of permanent incapacity for work caused by work injury or occupational disease, pension for incapacity for work shall be granted without the requirement for length of service.

If the person who has been declared to be permanently incapacitated for work has not earned the pension qualifying period required, but the person has lived in Estonia at least one year before applying for the pension, this person will be granted pension for incapacity for work to the extent of national pension (221,63 euros per month).

2. The recourse is had to the sub-paragraphs 1 and 2 of the Article 57 of the Code

In order to establish benefit for incapacity for work, adherence to the requirement for length of service will be verified at first.

If the requirement for length of service is adhered to, the calculation is based on the largest from the following old-age pension amounts:

ü  Old-age pension calculated on the basis of the sum of the years of pensionable service earned by the day of application and insurance components;

ü  Old-age pension in case of 30-years of pensionable service.

The amount of pension for incapacity for work is calculated by multiplying the largest one of the aforementioned sums by the percent of loss of capacity for work.

The national pension for a person with total incapacity for work is 100 percent of national pension rate. Starting with April 1, 2020, the national pension rate was 221,63 euros per month and the national pension for a person with 40 percent incapacity for work was 88,65 euros per month.

3. Non-applicable

4. Non-applicable

Article 58

The benefit specified in Articles 56 and 57 shall be granted throughout the contingency or until an old-age benefit becomes payable.

A pension for incapacity for work shall be granted for the period of permanent incapacity for work (subsection § 14 (2) of the State Pension Insurance Act. Right to receive the benefit expires upon attaining the pensionable age.

Payment of pension for incapacity for work shall be suspended for the time the person is held in custody and during imprisonment.

Work ability allowance shall be granted to a person until the end of the term for which partial or no work ability has been established. Right to receive the work ability allowance expires upon attaining the pensionable age.

A person who is serving a sentence in prison or is held in custody does not have the right to receive work ability allowance. If a person was held in custody but was acquitted, the work ability allowance shall be paid retroactively for the period the person was held in custody.

Changes made due to the COVID-19 crisis:

During the COVID-19 situation the periods of work ability were extended because of impossibility to visit a doctor for updating the data needed for work ability assessment in health information system. This was a temporary measure during the lockdown period.

PART X – SURVIVORS’ BENEFIT

Article 59

Each Contracting Party for which this part of the Code is in force shall secure to the persons protected the provision of survivors’ benefit in accordance with the following articles of this part.

Article 60

1. The contingency covered shall include the loss of support suffered by the widow or child as the result of the death of the breadwinner; in the case of a widow, the right to benefit may be made conditional on her being presumed, in accordance with national laws or regulations, to be incapable of self-support.

2. National laws or regulations may provide that the benefit of a person otherwise entitled to it may be suspended if such person is engaged in any prescribed gainful activity or that the benefit, if contributory, may be reduced where the earnings of the beneficiary exceed a prescribed amount, and, if non-contributory, may be reduced where the earnings of the beneficiary or his other means or the two taken together exceed a prescribed amount.

1. The contingency covered shall be death of provider. In this case, family members who were maintained by the provider have the right to receive survivor’s pension. It is important to point out that the right of the provider’s widow or widower to receive a survivor’s pension does not depend on whether they were maintained by the provider or not (during provider’s lifetime).

However, incapacity of widow or widower to maintain himself/herself is essential for determining eligibility for survivor’s pension.

ü  Provider’s non-working widow who is pregnant (from the 12th week of pregnancy) has the right to receive a survivor’s pension.

ü  Provider’s widow or widower, who has been established to have no work ability or who is of pensionable age, has also the right to receive a survivor’s pension.

2. A pregnant widow loses the right to receive survivor’s pension, if she is working or operating as an undertaking.

Article 61

The persons protected shall comprise: a. the wives and the children of breadwinners in prescribed classes of employees, which classes constitute not less than 50 per cent of all employees; or b. the wives and the children of breadwinners in prescribed classes of the economically active population, which classes constitute not less than 20 per cent of all residents; or c. all resident widows and resident children who have lost their breadwinner and whose means during the contingency do not exceed limits prescribed in such a manner as to comply with the requirements of Article 67.

A. The recourse is had to the sub-paragraph (b) of the Article 61 of the Code

B. Please refer to the information provided under Article 27

C. Upon the death of a provider, all the family members who were maintained by him or her have the right to receive a survivor’s pension.

Article 62

The benefit shall be a periodical payment calculated as follows: a. where the wives and children of breadwinners in classes of employees or classes of the economically active population are protected, in such manner as to comply either with the requirements of Article 65 or with the requirements of Article 66; b. where all resident widows and resident children whose means during the contingency do not exceed prescribed limits are protected, in such a manner as to comply with the requirements of Article 67.

A. The recourse is had to the Article 66 of the Code

Survivor’s pension for a spouse with two children is equal or bigger (but no less) than old-age pension, available to a person with a pensionable period of 30 years. Starting from April 1, 2020 the old-age pension for a person with 30 years of pensionable service was 428.63 euros per month and starting from April 1, 2021 the old-age pension for a person with 30 years of pensionable service is 451.49 euros per month. Therefore, in 2020, the survivor’s pension for a spouse with two children was at least 428.63 euros per month and starting with April 1, 2021 the survivor’s pension for a spouse with two children is at least 451.49 euros per month.

Starting from April 1, 2021 the survivor’s pension amount is:

- for three family members 451.49 euros;

- for two family members 361.19 euros;

- for one family member 225.74 euros.

Titles I and IV, Article 66

a. For the selection of a regular unskilled male worker, see information under Article 28.

b. In 2020, the gross wage for a regular unskilled male worker was 1123,38 euros and the net wage was 966.35 euros (see also information under Article 28).

c. In 2020, the family benefit paid for a standard beneficiary was 120 euros per month.

d, e. In 2020, the family benefit sum paid for a standard beneficiary with two children was 120 euros per month. Payment of family benefits is not related to the parents working or receiving other social security benefits, i.e. the same family benefit is paid both while working and during periods of incapacity for work.

f. In 2020, the survivor’s pension for a standard beneficiary per cent of a regular unskilled male worker’s net wage was:

(428.63+ 120,00) / (966.35+ 120.00) = 50.5%

b) Gross and net monthly wage of a regular unskilled male, euros

Gross and net monthly wage of a regular unskilled male worker, euros

Gross wage

Net wage, euros

2020

1123,38

966.35

Statistics Estonia

c) Survivor’s pension for a standard beneficiary (with 2 children), euros

Euros

2020

428.63

Social Insurance Board

d, e) Family benefits for a standard beneficiary with two children, euros

Euros

2020

120

Ministry of Social Affairs

f) the survivor’s pension for a standard beneficiary per cent of a regular unskilled male worker’s net wage, %

%

2020

50.5

Article 63

1. The benefit specified in Article 62 shall, in a contingency covered, be secured at least: a. to a person protected whose breadwinner has completed, in accordance with prescribed rules, a qualifying period which may be 15 years of contribution or employment, or 10 years of residence; or b. where, in principle, the wives and children of all economically active persons are protected, to a person protected whose breadwinner has completed a qualifying period of three years of contribution and in respect of whose breadwinner, while he was of working age, the prescribed yearly average number of contributions has been paid.

2. Where the benefit referred to in paragraph 1 of this article is conditional upon a minimum period of contribution or employment, a reduced benefit shall be secured at least: a. to a person protected whose breadwinner has completed, in accordance with prescribed rules, a qualifying period of five years of contribution or employment; or b. where, in principle, the wives and children of all economically active persons are protected, to a person protected whose breadwinner has completed a qualifying period of three years of contribution and in respect of whose breadwinner, while he was of working age, half the yearly average number of contributions prescribed in accordance with paragraph 1.b of this article have been paid.

3. The requirements of paragraph 1 of this article shall be deemed to be satisfied where a benefit calculated in conformity with the requirements of Part XI but at a percentage of ten points lower than shown in the Schedule appended to that part for the standard beneficiary concerned is secured at least to a person protected whose breadwinner has completed, in accordance with prescribed rules, five years of contribution, employment or residence.

4. A proportional reduction of the percentage indicated in the Schedule appended to Part XI may be effected where the qualifying period for the benefit corresponding to the reduced percentage exceeds five years of contribution or employment but is less than 15 years of contribution or employment; a reduced benefit shall be payable in conformity with paragraph 2 of this article.

5. In order that a childless widow presumed to be incapable of self-support may be entitled to a survivor’s benefit, a minimum duration of the marriage may be required.

1. The recourse is had to the paragraphs 1 and 2 of the Article 63 of the Code

In case of survivor’s benefit, the qualifying period is a pension qualifying period of the provider, the rules of which calculation have been set out under Article 29 of part V (old-age benefit) of this report.

The required pension qualifying period depends on the age of the provider at the time of death:

Age in years

Required pension qualifying period

16-24

No requirement for length of service

25-26

1

27-28

2

29-30

3

31-32

4

33-35

5

36-38

6

39-41

7

42-44

8

45-47

9

48-50

10

51-53

11

54-56

12

57-59

13

60-62

14

If the provider died because of work injury or occupational disease, survivor's pension shall be granted without the requirement for length of service.

If the provider has not earned the pension qualifying period required, but the provider has lived in Estonia at least one year before his/her death, this person who has lost the provider will be granted national pension in the amount of 221,63 euros per month.

2. The recourse is had to the paragraphs 1 and 2 of the Article 63 of the Code

In order to establish survivor’s benefit, adherence to the requirement for length of service will be verified at first.

If the requirement for length of service is adhered to, the calculation is based on the largest from the following old-age pensions:

ü  old-age pension calculated on the basis of the sum of the years of pensionable service earned by the day of provider’s death and insurance components;

ü  old-age pension in case of 30 years of pensionable service.

The amount of survivor’s pension depends on the number of family members .

The amount of survivor’s pension is:

ü  to three or more family members 100% of the old-age pension used as a basis for calculation;

ü  to two family members 80% of the old-age pension used as a basis for calculation;

ü  to one family member 50% of the old-age pension used as a basis for calculation.

3. Non-applicable

4. Non-applicable

5. Non-applicable

Article 64

The benefit specified in Articles 62 and 63 shall be granted throughout the contingency.

Survivor’s benefit shall be established for the period during which the persons to be covered meet the requirements to receive the benefit.

Payment of survivor’s pension shall be suspended for the time the person is held in custody and during imprisonment.

Changes made due to the COVID-19 crisis:

Second pillar social tax suspension

Estonia temporarily suspends the payment of employer contributions to the second pension pillar, except for employees borne between 1942 and 1960. This suspension happens from 1 July 2020 until 31 August 2021. Members had the option of stopping their contributions as well by applying for a suspension in October 2020. The suspension of employee contributions applies between 1 December 2020 and 31 August 2021.

In 2023-2024, the state budget will finance the missing 4% employer contributions for every month employees continue to make their 2% contributions between 1 July 2020 and 31 August 2021. This amount will be paid into second pillar pension plans. The state will also finance a return on these missing contributions. This return will correspond to the average return of second pillar pension plans between 1 July 2020 and 31 December 2022.

Additional information requested by the supervisory bodies of the Code

The Committee of Ministers decides to invite the Government of Estonia concerning Part X (Survivors’ benefit), Article 60(1) of the Code, Presumption of the widow/widower to be incapable of self-support, to consider taking the necessary measures to ensure that the spouses of deceased insured persons who are raising children be entitled to survivors’ benefits for the whole period during which the children are considered to be dependent on them in accordance with national law in order to give full effect to Article 60(1) of the Code;

In 2021, we are analyzing survivors' pensions. During the analysis, we consider different alternatives and their effectiveness. The deadline for the analysis is the end of 2021. In 2022, we will start a wide-ranging discussion with social groups and politicians based on the results of the analysis. The aim is to reform the survivor's pension and make it more sustainable and efficient.


PART XI – STANDARDS TO BE COMPLIED WITH BY PERIODICAL PAYMENTS

The information asked is indicated under the corresponding Article of each Part.

PART XII – COMMON PROVISIONS

Article 68

A benefit to which a person protected would otherwise be entitled in compliance with any of Parts II to X of this Code may be suspended to such extent as may be prescribed:

a. as long as the person concerned is absent from the territory of the Contracting Party concerned;

b. as long as the person concerned is maintained at public expense, or at the expense of a social security institution or service, subject to a portion of the benefit being granted to the dependants of the beneficiary;

c. as long as the person concerned is in receipt of another social security cash benefit, other than a family benefit, and during any period in respect of which he is indemnified for the contingency by a third party, subject to the part of the benefit which is suspended not exceeding the other benefit or the indemnity by a third party;

d. where the person concerned has made a fraudulent claim;

e. where the contingency has been caused by a criminal offence committed by the person concerned;

f. where the contingency has been caused by the wilful misconduct of the person concerned;

g. in appropriate cases, where the person concerned neglects to make use of the medical or rehabilitation services placed at his disposal or fails to comply with rules prescribed for verifying the occurrence or continuance of the contingency or for the conduct of the beneficiaries;

h. in the case of unemployment benefit, where the person concerned has failed to make use of the employment services placed at his disposal;

i. in the case of unemployment benefit, where the person concerned has lost his employment as a direct result of a stoppage of work due to a trade dispute, or has left it voluntarily without just cause; and

j. in the case of survivors’ benefit, as long as the widow is living with a man as his wife.

Article 69

1. Every claimant shall have a right of appeal in case of refusal of the benefit or complaint as to its quality or quantity.

2. Where in the application of this Code a government department responsible to a legislature is entrusted with the administration of medical care, the right of appeal provided for in paragraph 1 of this article may be replaced by a right to have a complaint concerning the refusal of medical care or the quality of the care received investigated by the appropriate authority.

3. Where a claim is settled by a special tribunal established to deal with social security questions and on which the persons protected are represented, no right of appeal shall be required.

Every claimant has a right to appeal in case of refusal of the benefit or complaint as to its quality or quantity guaranteed by the Administrative Procedure Act.

Article 70

1. The cost of the benefits provided in compliance with this Code and the cost of the administration of such benefits shall be borne collectively by way of insurance contributions or taxation or both in a manner which avoids hardship to persons of small means and takes into account the economic situation of the Contracting Party concerned and of the classes of persons protected.

2. The total of the insurance contributions borne by the employees protected shall not exceed 50 per cent of the total of the financial resources allocated to the protection of employees and their wives and children. For the purpose of ascertaining whether this condition is fulfilled, all the benefits provided by the Contracting Party concerned in compliance with this Code, except family benefit and, if provided by a special branch, employment injury benefit, may be taken together.

3. The Contracting Party concerned shall accept general responsibility for the due provision of the benefits provided in compliance with this Code, and shall take all measures required for this purpose; it shall ensure, where appropriate, that the necessary actuarial studies and calculations concerning financial equilibrium are made periodically and, in any event, prior to any change in benefits, the rate of insurance contributions, or the taxes allocated to covering the contingencies in question.

The benefits provided to the insured people by Estonian Health Insurance Board (Parts II, III and VIII) are financed from social tax, paid by employers (except cases where social tax is paid by the State).

The unemployment benefit provided to the insured people by Estonian Unemployment Insurance Fund (Part IV) is financed from unemployment insurance premiums paid both by employees and employers. The current unemployment insurance rates applicable to an employee and to an employer are 1,6% and 0,8% of gross wage.

All the other benefits provided (Parts V, VII, IX and X) are financed from social tax and general State budget, no contributions are born by employees protected.

Article 71

1. Where the administration is not entrusted to a government department responsible to a legislature, representatives of the persons protected shall participate in the management, or be associated therewith in a consultative capacity, under prescribed conditions; national laws or regulations may likewise decide as to the participation of representatives of employers and of the public authorities.

2. The Contracting Party concerned shall accept general responsibility for the proper administration of the institutions and services concerned in the application of this Code.

Only the administration of schemes described under Part II (Medical Care), Part III (Sickness benefit), Part IV (Unemployment Benefit) and Part VIII (Maternity Benefit) are entrusted to Estonian Health Insurance Fund and Estonian Unemployment Insurance Fund, which are not Government departments. The rest of social insurance schemes are administrated by Social Insurance Board, which is a government authority operating within the government area of the Ministry of Social Affairs. Both Estonian Health Insurance Fund and Estonian Unemployment Fund have Supervisory Boards, whose staff includes also the representatives of persons protected. For more details on composition of the Supervisory Boards mentioned please consult Estonian Health Insurance Fund and Estonian Unemployment Fund.

PART XIII – MISCELLANEOUS PROVISIONS

The information asked is indicated under the corresponding Article of each Part.



[1] Employer may also pay more than EUR 200 if the compensation + EUR  200 is less than the wage effectively due to the employee in that month.

[2] Previously “foster care allowance”. From 2018, the name and target group of the allowance changed, as foster families and children growing up in them are supported through local governments on the same basis as other children in substitute care services.