- Estonian pension system
- I pillar
- II pillar
- III pillar
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 (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 2017 each month €38.76 will be added to the pension account.
The II pillar contributions are made by the Estonian national Social Insurance Board to a person who has subscribed to the funded pension and is obliged to pay mandatory funded pension contributions, and who is raising a child who is less than three years old.
The person raising the child 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.
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.
NB! If a parent returns to work during the period 2014–2017, contributions made from his or her salary and social tax will continue, to which 4% of the average salary in Estonia will be added until the child is three years old.
To receive parental pension contributions, an application has to be submitted to the Estonian National Social Insurance Board. 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.
The application form is available at the customer service or homepage of the Estonian National Social Insurance Board.