Parental pension
Calculation of the Parental Pension
A parent has the right to receive additional contributions to the mandatory funded pension (II pillar) for raising a child born on 1 January 2013 and later.
The amount of the contribution is 4% of the average income of one calendar month taxable with social tax.
It is calculated by the Estonian National Social Insurance Board by 1 May on the basis of the social tax information of the previous calendar year.
In 2019, € 44,26 was added to the pension account each month.
In 2020, it was € 47,31 each month.
The II pillar contributions are made by the Estonian national Social Insurance Board, if you have subscribed to the funded pension and you are obliged to pay mandatory funded pension contributions, and you are raising a child who is less than three years old.
The person who has the right to receive parental pension can be the child’s parent, spouse of the parent, guardian or caregiver with whom a foster care contract has been concluded. The right for additional contributions arises from the child’s birth and is in force until the child becomes three years old, regardless of the fact if the parent has returned to work or not.
Additional Contributions for One Parent at a Time
The contributions are made monthly for the previous calendar month. If more than one person has the right to apply for additional contributions for the same child, it will be agreed who will use the right for additional contribution. The agreement must be expressed in a written consent.
The person who will receive the contributions, can be changed until the child is three years old. For that, a new application and agreement have to be submitted to the Estonian National Social Insurance Board.
Application
To receive parental pension contributions, an application has to be submitted to the self-service of Social Insurance Board. If parent have registered the child in the population register, Social Insurance Board will receive this information automatically the following day. Social Insurance Board will then send an offer of benefits for both parents in the self-service. There the person will also find additional contributions to the funded pension, which you can either keep, transfer to the other parent or waive.
Additional contributions are made from the day the child is born, if the application is submitted within six months. If the application is submitted later, contributions can be made retroactively, but not more than for the six calendar months preceding the submission of the application.