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Estonia · Law · SE

547

An Act to amend the Family Benefits Act and other Acts

avaldatud riigiteatajasEstonia· Riigikogu· ET

Introduced

2 December 2024

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AVALDATUD_RIIGITEATAJAS

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Source updated

19 March 2025

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Summary

The draft creates a new single breadwinner allowance scheme for children who have lost a parent, which guarantees monthly allowance, regardless of the deceased parent's retirement age or the number of children. The explanatory letter states that according to the current rules, the survivor's pension paid to children varies in size and in many cases does not sufficiently cover the costs of supporting children. Families with children are in a particularly vulnerable situation.   The new basic amount of support is 272 euros, which is indexed every year according to the increase in the cost of living, i.e. according to current forecasts, the amount of support to be paid out would be approximately 345 euros in 2026. The allowance for the loss of a breadwinner will significantly reduce the risk of poverty in single-parent households and support families with children. The needs of a bereaved child are the same regardless of how long the parent was able to work before death. Uniform and indexed support improves the child's well-being and ensures it long-term confidence. The existing survivor's pension scheme for children will be replaced from October 1, 2026 by a support created on the basis of the new Family Benefits Act. The survivor's allowance is paid until the child turns 19 or, if studies continue, until the child turns 21. Children who already receive a survivor's pension when the bill enters into force, and whose survivor's pension was less than or equal to the survivor's allowance, will in the future receive support in the amount of survivor's allowance. In the event that the determined survivor's pension was greater than the amount of the survivor's allowance, in the future they will receive support in the amount of the survivor's pension until it equals the amount of the survivor's allowance.   The size of the support created takes into account the cost of maintaining a child, the change in the consumer price index and the change in the average gross monthly salary in Estonia - as a result of annual indexing, the real value of the support is preserved over time. Getting support the circle of educational institutions that enable it is wider than the survivor's pension, and it is also possible to receive the survivor's allowance at the same time as the work capacity allowance. Loss of breadwinner allowance guarantees 90% of recipients more support than before.  From October 1, 2026, new survivor's pensions will no longer be granted to those aged 21 and older based on the State Pension Insurance Act (except survivor's pensions based on special laws).  For people aged 24 and over who developed entitled to a survivor's or national pension before October 1, 2026, the pension will continue to be paid until the previously determined term (e.g. if the payment is related to the loss of working capacity, then until the end of this period). Expectant women who do not work and whose child's second parent is dead have the opportunity to receive parental benefit 70 calendar days before the expected date of birth of the child.

Machine translation from Estonian. The official text remains authoritative.

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