The government recalculates pensions every spring to keep them in line with salary and price changes. According to Statistics Estonia, prices rose by 4.8 percent in 2025, with the average old-age pension set to increase by more than five percent.

The pension indexation affects approximately 328,000 pensioners.

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.

After indexation, the monthly national pension will amount to €414.10.

On April 1 each year, Estonia's 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.

From April 1, 2026, 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.

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

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