Parental benefits are paid to permanent residents of Estonia, and to foreign nationals residing in Estonia on the basis of a temporary residence permit or right of residence in Estonia.
The benefit will start to be paid one day after the period for paying maternity benefit or adoption benefit. Those who do not receive the maternity benefit are paid the parental benefit starting from the birth of the child. The childcare benefit is not paid to parents who receive the parental benefit.
Income tax is withheld from the parental benefit from the first euro. If you wish to change the amount of exemption from income tax or waive the tax exemption, you can submit the respective application online at the State Portal eesti.ee with the service “Applying for exemption from income tax”.
Calculating the amount of the parental benefit
Before the child turns 70 days of age, the mother raising the child has the right to the compensation; after that the parents have the right to the benefit by turns. The parent who is on the parental leave from their employer has the pre-emptive right to use the benefit. The amount of the benefit is 100% of the average income for one calendar year and the benefit is calculated on the basis of the income in the calendar year prior to the day on which the right to the benefit arose. The maximum amount of the parental benefit is three times the average wage approved by the Government of the Republic.
If the income for the previous year was less than the minimum monthly wage level established by the Government, the amount of the parental benefit shall be equal to the minimum monthly wage. If there was no income subject to social tax at all, the amount of the benefit is equal to the rate of the benefit. Those who did not earn income are ensured an income equal to the benefit level (470 euros in 2018).
If a parent worked in another EU country in the previous calendar year and received no income in Estonia, the parental benefit is designated at the minimum wage rate.
As an exception, more equitable treatment is extended to parents who only worked in another EU country during the previous calendar year but who worked in Estonia during the year in which the right to the parental benefit arose and who took pregnancy and maternity leave in Estonia. In this case the average salary in Estonia for the year during which the parent worked abroad is considered to be the income received abroad.
Period in which parental benefit is received
The right to the parental benefit begins on the day following the last day of the pregnancy and maternity leave. If the mother did not go on pregnancy and maternity leave, the right to the parental benefit arises as of the child’s birth. The parental benefit is granted for 435 days since the day the aplpicant becomes eligible for the benefit.
NB! Those who have 2nd pillar funded pensions have one percent of the parental benefit paid into their pension fund for every child born before 01.01.2013. This payment is made from the state budget. More information can you read in article “Additional contributions to the second pillar of the pension system”.
If you have any questions, call the information line of the National Social Insurance Board at 16106 or (+372) 612 1360 or write an e-mail to firstname.lastname@example.org.