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Pension Calculation

Starting from 2021, the pension will consist of four parts:

  • The pension base part

is the basis that is the same for all different pension types. Starting from April 1st, 2021, the base part is 219,3079 euros, to which an extraordinary increase of EUR 16 will be added this year. The total amount of the base part is 235.3079 euros.

  • The pension qualification period part

depends on the time worked, studied, and served in the army until December 31st, 1998. These years are taken into consideration based on the employment records book and other documents. To find the qualification period part, the pension qualifying period collected until December 31st, 1998, shall be multiplied by the yearly rate. The yearly rate is the cost of one pension qualifying year or the insurance component. Starting from April 1st, 2021, the yearly rate is 7,206 euros.
 

  • The insurance part of the pension

depends on the sum of insurance components that are calculated since January 1st, 1999, according to the social tax paid for you. To find the insurance part, the total of the insurance components is multiplied by the yearly rate. The yearly rate is the cost of one pension qualifying year or the insurance component. Starting from April 1st, 2021, the yearly rate is 7,206 euros.

  • Joint part of pension

Starting from the beginning of 2021, a fourth part – joint part – will begin accumulating.

The joint part consists of:

  • an insurance component of 50%. The size of the insurance component is calculated based on the received social tax. It is calculated in the same manner as the currently accumulated insurance component. For example, the size of the insurance component of a person earning average wages in Estonia is 1.0.
  • a solidary component of 50%. The solidary component is 1.0, if the social tax has been paid for the person on at least 12 times the minimum wages during the year. If the social tax paid for the person is less than the minimum annual wages, the solidary component shall be calculated proportionally.

Calculation of joint part: (solidary component + insurance component) ÷ 2 = joint part of pension

Read more about the change in the pension formula

 

Pension formula:

The pension amount consists of three parts.

    BASE AMOUNT

    +QUALIFICATION PERIOD PART

    +INSURANCE PART

    + JOINT PART

    =PENSION

    235,3079

    +yearly rate (7,206)  x pension qualifying period

    yearly rate (7,206) x total of insurance components

    +7.206 x the amount of your joint components

    =pension amount

    Calculator for the I pension pillar  https://www.eesti.ee/eng/services/citizen/toetused_ja_sotsiaalabi_1/pensionikalkulaator