Pensions of 350,000 in Estonia increase 8.4% on Monday
As a result of annual reindexation, some 350,000 pensioners in Estonia will see their pensions increase an average of 8.4% in size as of Monday.
In addition to old-age pensions, pensions for the incapacity for work as well as survivor's benefits will likewise increase, while the value of the national pension rate will rise as well, the Social Insurance Board said. On average, pensions are expected to go up some 8.4%.
"Everyone's pension is calculated individually based on their previous work input, and increases will vary after indexation," explained Merle Sumil-Laanemaa, adviser at the Social Insurance Board's Benefits Department.
Ms Sumil-Laanemaa added that pension growth is calculated on the basis of pensionable service. For instance, the average pension of a person with 44 years of pensionable service will increase from the current €446.50 to €483.24.
The value of the index is calculated to the extent of 80% based on the change in last year's social tax receipts and to the extent of 20% based on the change in the consumer price index (CPI). This year, the value of the index is €1.084. Following indexation, the base pension amount totals €191.6, and the value of one year of pensionable service amounts to €6.627 euros.
The value of the national pension rate is also to increase from €189.31 to €205.21.
The reindexation is effective from 1 April. Further information on one's individual pension is available in the Pensions and Allowances section of the state portal eesti.ee. One's individual pension growth can be calculated using the indexing calculator on the Social Insurance Board's homepage, which estimates the new pension value based on the amount a person currently receives.
Editor: Aili Vahtla