April 2024: Pension Changes in Estonia - Average Pension Increase to 774 Euros

Narva News, February 19, 2024 — The average old-age pension in Estonia will rise from 700 to 774 euros due to a new bill aimed at improving the welfare of the elderly. Discover how the basic part of the pension will change and what it means for the country's 325,000 pensioners.

Pension Increase in Estonia in 2024: From 700 to 774 Euros

Pension Increase in Estonia in 2024: From 700 to 774 Euros

In response to the growing needs of the elderly population and the changing economic situation, the Estonian Ministry of Social Affairs has proposed a significant increase in the average pension. According to the new bill, the average old-age pension is expected to rise from 700 to 774 euros starting in April 2024. This 10.6% increase is part of the state's pension indexing policy, aimed at supporting the country's elderly citizens.

The pension index for 2024 is set at 1.106, reflecting the government's effort to keep pension payments in line with current economic conditions. This decision follows last year's increase of 13.9%, which was the highest in the last 15 years. Minister of Social Protection Signe Riisalo emphasized that although the current increase is smaller compared to last year, it plays a critical role in easing the lives of the elderly, especially those facing financial difficulties.

Riisalo also noted that the increase in the basic part of the pension contributes to improving the welfare of those receiving minimum pensions. The national pension amount from April will be 372.05 euros, which is 35.66 euros more than the current amount. The basic part of the pension will rise to 354.98 euros. These measures imply significant budget allocations exceeding 212.3 million euros and will affect around 325,000 pensioners across the country.

In Estonia, pensions are recalculated annually in spring to ensure they align with economic changes, including wages and prices. This individualized approach to pension calculation takes into account the pensioner's years of service and insurance contributions since 1999, thus ensuring fairness and adequacy of pension payments.

The bill is undergoing stages of coordination with key ministries and departments, including the Ministry of Finance and the Ministry of Economic Affairs and Communications. The final approval of the new pension index by the government is expected after a thorough review of all aspects of the proposal.