On April 1, state pensions are indexed using an index whose value depends 20 percent on the annual growth of the consumer price index and 80 percent on the annual growth of pension insurance contributions from social tax.

Data from Statistics Estonia shows prices rose by 4.8 percent in 2025, and the average pension will increase by more than 5 percent, or slightly faster than the rise in prices this year.

This coming year, for those of old-age pension age, the tax-free income threshold will remain €776 per month, or €9,312 per year, in the new year.

Following indexation, the national pension will amount to €414.10.

Indexation is also used to determine unemployment benefits, as well as compensation for work accidents and occupational diseases.

From April 1, the daily rate of the work ability allowance will be €22.89. In the case of partial work ability, the benefit will amount to 57 percent of the applicable daily rate, averaging €391.42 per month, and in the case of no work ability, 100 percent of the applicable daily rate, averaging €686.70 per month.

--

Follow ERR News on Facebook and Twitter and never miss an update!