The Ministry of Social Affairs has proposed an index value of 1.139 for the state pension in 2023 for approval. This means that, as of April 1, pensions and the daily rate of disability compensation will rise by 13.9 percent, bringing the average pension to €700.
For example, from April 1, the pension of a person with 44 years of service will be €84.67 higher, or €700.02.
The basic component of the pension after indexation will be €317.9 and the annual gain €8.684, according to the draft.
Pensions recalculated according to the 2023 index will be paid from April.
Indexing pensions will cost the state €245,8 million this year, which results in pension increases for 323,000 retirees.
The Estonian government recalculates pensions every spring to account for changes in wages and prices. Each person receives an individual pension based on his or her previous contributions. The current pension indexation system was put in place on January 1, 2008, when indexation was linked to higher social tax receipts.
The social security office will recalculate all state pensions using the revised numbers once the index has been confirmed.
Beginning April 1, you can verify the amount of your new pension on eesti.ee.
Customer service at the Social Insurance Board can also provide additional information.
Editor: Kristina Kersa