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Tuesday, 25.04.2017, 13:24
Estonia’s government approves amendments to parental benefit law
According to the regulations valid now, if a parent works, while on a paid parental leave after having a baby, the parent's combined income of the parental benefit and salary can in certain cases be smaller than it would have been, if the parent had just received the benefit.
Now the law was changed to encourage people to work while receiving the parental benefit and it is guaranteed that their total income would always be bigger than the parental benefit when they work too.
According to current regulations, the parental benefit isn’t paid at all if the parent earns more than 1,450 euros a month as salary in addition to the parental benefit. The new law abolishes that limit, the principle stays in force that the parental benefit won't be reduced if the salary amounts to the benefit level.
The new regulation increases state budget spending by around 294,000 euros a year. The new law comes in force on January 1, 2014.