The average old-age pension in Estonia will rise by between €28-29 from April 1, Minister of Public Administration Jaak Aab (Center) said at the government's press conference on Thursday.
About €20 of the increase is the result of a law adopted by the Riigikogu in December 2020. To that, between €8 and €9 will be added, meaning that the average monthly pension will increase by approximately €28, the Center Party minister said.
"I would like to remind everyone that average wages are practically not rising, which means that the wellbeing of pensioners compared with wage earners will improve a bit or catch up a bit, as in the years in-between pensions rose by less than the average wage," Aab said.
The minister said that the government has reached an agreement in principle that there will be an extraordinary pension increase also next year. It is also the government's wish to make the average old-age pension free of income tax, he added.
Editor: Helen Wright