Estonian government approves 5.1-percent pension increase
The Estonian government on Thursday endorsed 1.051 as the value of the index of state pensions for 2017, which means that pensions will increase by 5.1 percent on average beginning April 1.
This change would increase the old-age pension of a person with 15 years of pensionable service to €248.41 per month, while the state pension for 30 years pensionable service would increase to €334.91 per month and for 44 years to €415.65 per month.
The value of the index is calculated to the extent of 80 percent based on the change in last year's social tax receipts and to the extent of 20 percent based on the change in the consumer price index (CPI). According to Statistics Estonia data, the CPI inched up 0.1 percent last year while figures available from the Ministry of Finance show that 6.4 percent more money from the social tax flowed into pension insurance than the year before.
Subject to indexation are the pensions of 417,516 people. The pension increase this year is expected to cost the government €65.5 million.
Editor: Aili Vahtla
Source: BNS
