Statutory Old Age Pension Scheme | Max-Planck-Institut für Sozialrecht und Sozialpolitik - MPISOC

Statutory Old Age Pension Scheme

Riiklik vanaduspension

1 According to the terminology in the national law, the statutory pension scheme is financed from ‘social tax’ instead of using the concept of ‘insurance contributions’ in accordance with the Estonian Social Tax Act.

2 The minimum amount of contributions per year must be equal to or more than the minimum wage for the given year.

3 Yearly rate: the cost of one pension qualifying year or the insurance component determined annually. The yearly rate in 2020 is EUR 7.10.

4 The solidary component is 1.0 if the contributions have been paid to the extent of at least 12 times the minimum wage for the country during the year. If the contributions are less than the minimum annual wage, the solidary component shall be calculated proportionally.

Legal Basis:  State Pension Insurance Act, Chapter 2  (Riikliku pensionikindlustuse seadus, 2. peatükk); Old Age Pensions under Favourable Conditions Act (Soodustingimustel vanaduspensionide seadus); Persons Repressed by Occupying Powers Act (Okupatsioonirežiimide poolt represseeritud isiku seadus); Social Tax Act (Sotsiaalmaksuseadus); Income Tax Act (Tulumaksuseadus).