Estonia, Financial Services, Legislation, Pensioners, Society

The value of the index is calculated to the extent of 80% based on the change in last year's social tax receipts and to the extent of 20% based on the change in the consumer price index (CPI). According to data of Statistics Estonia, CPI declined 0.5% last year while figures available from the Finance Ministry show that 7.2% more social tax money than the year before flowed into pension insurance.

Subject to indexation are the pensions of 415,097 people and the pension increase this year is estimated to take 68.9 million euros from the state budget.

The change would raise the old-age pension of a person with 15 years of pensionable service to 236.01 euros a month. With 44 years of pensionable service the new size of the state pension will be 395.92 euros a month.