- State pensions
- Claiming for tax-free income level of the state pension
- Non-resident pension recipient
Pension qualifying period is made up of the activities performed throughout your lifetime, such as studying, raising children, working, and serving in the military.
Pension qualifying period is divided into two:
- years of pensionable service up to 31 December 1998, which is calculated based on the employment record book and documentation
- accumulation period as of 1 January 1999, which is calculated based on the social tax paid on your behalf.
The pension qualifying period can also consist only of the years of pensionable service or the accumulation period.
In the case of old age, incapacity for work or loss of a provider the state shall pay monthly financial social insurance benefit – state pension. This benefit, based on the principle of solidarity, is paid to the permanent residents of Estonia and aliens residing in Estonia on the basis of temporary residence permits or temporary right of residence.
Types of state pension:
- national pension
- old-age pension, including:
- early-retirement pension
- deferred old-age pension
- old-age pension under favourable conditions
- pension for incapacity for work
- survivor’s pension.
In many professions, pension or pension supplement is paid pursuant to specific law.
The national pension and old-age pension comprise the first pillar of the pension system.
To apply for a pension you should contact the Social Insurance Board.
National pension is granted to the persons who have attained 63 years of age and who have not earned a pension qualifying period required for the grant of old-age pension and who have been permanent residents of Estonia or have resided in Estonia on the basis of a temporary residence permit or temporary right of residence for at least five years immediately before making a pension claim. The rate of national pension is 167,40 €. National pension is not paid to persons who receive pension from another state. More about national pension can you read at the web page of Social Insurance Board.
Persons who have attained 63 years of age and whose pension qualifying period earned in Estonia is 15 years have the right to receive old-age pension. More about early-retirement pension, deferred old-age pension and old-age pension under favourable conditions can you read at the web page of Social Insurance Board.
Upon the death of a provider, family members who were maintained by him or her have the right to receive a survivor’s pension. Survivor’s pension shall be granted to the children, parents and the widow or widower irrespective of whether they were maintained by the provider or not. More about survivor’s pension can you read at the web page of Social Insurance Board.
Claiming for tax-free income level of the state pension
The tax-free income level of the state pension is 2832 euros per year, which comes to 236 euros per month. The part of the pension that exceeds 236 euros a month is subject to income tax. At the same time, both working and non-working pensioners are entitled also to general tax-free income, which is 2160 euros per year, or 180 euros per month. Thus a pensioner may receive tax-free up to 416 euros a month in total.
To claim the general tax-free income (180 euros) the non-working pensioner must present an application (pdf, 13,4 kB, only in Estonian) to a regional bureau of the Social Insurance Board. The application must list the applicant’s name, personal identification code, place of residence and month and year starting from which it is desired to claim the tax-free income.
Non-resident pension recipient
A receipt of the pension who is a non-resident in Estonia should submit a life certificate (pdf, 7,6 kB) to the Social Insurance Board not later than by 1 March each year. As your address is outside Estonia, you to should submit the life certificate certified by the authority of the state of residence to the Social Insurance Board annually between 1st of December and 1st of March. The authority may be social system authorities, the Pension Board or local government institutions or notary public of your state of residence. The form of this certificate is annexed to this note. Life certificate may be replaced by a certificate concerning residence issued by the tax board of your state of residence.
Please send the certificate to the following address: Sotsiaalkindlustusamet, Endla 8, 15092 Tallinn, ESTONIA
In case of a failure to submit a certificate within the prescribed term, payment of pension shall be suspended as of 1 April. If a certificate is submitted later, payment of pension shall continue retroactively as of suspension of the payment of pension.
If you are a citizen of Estonia or already receive Estonian pension and live in Estonia, Russia, Lithuania, Latvia, Moldova or Ukraine you should not submit this certificate.
Estonia has entered into social insurance agreements with Lithuania, Latvia, Moldova, Finland, Sweden, Ukraine, Netherlands, Canada and Russia.