Pensions to rise by €7, Ministry of Social Affairs confirms

Pensioners in Tallinn (picture is illustrative).
Pensioners in Tallinn (picture is illustrative). Source: Siim Lõvi/ERR

Minister of Social Affairs Tanel Kiik (Centre) confirmed to ERR on Tuesday that the extraordinary pension increase will be €7, not €100 as promised by the party before the election in March.

Yesterday it was reported, but not confirmed, that the increase would be €7. This will be followed by the annual increase from indexing, which next year should be approximately €39.

Kiik said Prime Minister Jüri Ratas has shown a clear commitment that the government will continue to raise pensions and improve the well-being of elderly people.

He also told ERR the government is planning to keep raising pensions in the coming years, but by exactly how much it is too early to say. This will be shown in the planning of future state budgets. 

"Goals need to be bought in. The government has only been in office for half a year, but in four years, we will deliver on our promises," Kiik said.

In April each year, all pensions increase as a result of indexation. As of April 1, 2020 pensions will increase by an average of 8 percent. ERR News previously reported how indexation is calculated.

In the second quarter of this year, (April, May, June) the average pension was almost €485. Next year, after indexation, a person receiving an average old-age pension will receive about €39 more, approximately €524 a month.

With the additional seven euros extraordinary increase, this will be €531.

The government agreed on the broad themes of the budget bill last Thursday, while the Ministry of Finance has spent the past few days streamlining it.

The draft legislation includes no new tax hikes and salaries will be hiked by 2.5 percent in several areas.

The budget bill is formally balanced. Income and expenses exceed €11 billion.


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Editor: Helen Wright

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