Mari-Liis Jakobson: On the usefulness of grandparent's pay
Why not offer young families a sense of security with the helping hands of a grandmother or grandfather? I am quite sure that a grandparent's allowance instrument would be less of a burden on the state budget than paying parental benefits to people who are at the peak of their careers, Mari-Liis Jakobson discusses in a Vikerraadio daily commentary.
Harvest month is upon us. But while its symbols are usually a combine or a lidding machine, this year it's more like symbolic scissors wielded by the new government in an attempt to cut public costs.
One possible cut being considered is lowering the ceiling for parental benefits. This would be one of the few cuts that would primarily affect higher-income individuals. Estonia's parental benefit system is known to be one of the most generous in the world, allowing a parent to stay home with their child for up to a year and a half while maintaining their full income. Currently, the maximum parental benefit is €4,733 per month, which is three times the average Estonian salary.
The primary purpose of this system is to encourage birth rates by providing young families with greater financial security, ensuring that having children does not immediately lead to a significant economic blow. Naturally, this system benefits higher earners more, as their salaries are two or even three times higher than average.
A few years ago, the system became even more attractive to top specialists: it's now possible to earn additional income on a part-time basis while receiving full parental benefits. This allows mothers or fathers who can work, for example, during their baby's naps, to secure additional income of up to €2,366 without losing any parental benefits.
However, this has not stopped the sharp decline in birth rates.
While recently enjoying the benefits of this system myself, I started questioning why new parents must be provided this sense of security exclusively in the form of a financial package. Why not offer it instead through an extra pair of helping hands, which could alleviate some of the burden on sleep-deprived and inexperienced new parents? Why is it that only the child's mother and father can take parental leave, but not, for example, the grandmother or grandfather? Sweden now offers this option.
As a big fan of the Vikerraadio show "Käbi ei kuku…," (where guests are usually a parent/child duo – ed.) I've noticed a pattern in the episodes: among those aged 30 and older, many describe their grandparents as having played a very significant or even central role in their upbringing, whereas in younger generations, grandparents are more often just dear and lovable people.
I'm far from romanticizing Soviet-era family policies, which often forced mothers back to the factory line a few months after giving birth or left 55-year-old grandmothers no choice but to stay home with grandchildren because there were no other options. Not to mention the housing shortages that made multigenerational living a necessity.
But the current system, where parents are left to manage their little bundle of joy alone because grandparents are fully engaged in the workforce and often invest their remaining energy in caring for their own elderly parents, seems somewhat lonely and sad.
Of course, there are mothers and fathers who eagerly look forward to that year and a half break from the hamster wheel of paid work or simply wouldn't trade a single moment with their little one for anything else, even for the third, fourth or fifth time. However, there are certainly also top specialists at the peak of their careers who delay or forgo having children altogether because a career break would mean too great a loss of opportunity.
Last year, the average age of a mother at childbirth was 31, and for first-time mothers, it was 28.7 years. The thirties are often the peak career years for men and likely for anyone not currently engaged in childbirth. Unfortunately, I couldn't find statistics on the average age at which people become grandparents, but considering the rising retirement age, it seems most will reach that golden period while still working.
So, why not offer young families security in the form of the helping hands of a grandmother or grandfather? I am quite certain that a grandparent's benefit would be less of a burden on the state budget than the parental benefit of people at the peak of their careers. Moreover, grandparents would retain all social guarantees and have the option to return to their employer later if they wish. In such a family model, there would be no need to look for pickles recipes online either, as preserving skills would have been learned in childhood in your grandparents' kitchen.
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Editor: Marcus Turovski