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For the family benefits’ recipient

 

Payment of family benefits

On the 8th date of each month, family benefits for the current calendar month, and the parental benefit for the previous calendar month are paid out. If the day of the bank transfer falls onto a public holiday or day off, we shall pay the benefits on the last preceding work day.

 

 

Changes in your personal data

If your family name changes, then you do not have to notify us, but you should turn to the bank with your new identity document and document proving your name change for correcting the data.

If you do not change your name at the bank, the benefits will bounce back to us in the system and you will not get them.

If the money bounces back to us on two consecutive months, we will stop your family benefits payment. You must file an application to continue the payment of family benefits in order for us to be able to continue. It can be done via email, regular mail, or by visiting our customer service after you have had data corrected at the bank. Our contact data is available here.

     

     

     

    Parental benefit and income tax

    The parental benefit is taxed with the income tax. If you do not work and want us to consider the tax-free minimum in the parental benefit payments, note it on the parental benefit application.

    If you are employed during the benefit payment period and earn a salary, you must decide whether you want the tax-free minimum to be discounted from the salary or the parental benefit taxes. The tax-free minimum can only be used for one.

    In 2016, the tax-free minimum was 170 euros per month. In 2017, it is 180 euros per month.

     

    Parental benefit and working

    If you continue working while you are paid the parental benefit and earn an income, then the income size determines how much parental benefit we shall pay. If your income is below the parental benefit rate, then your parental benefit amount does not decrease. If your income exceeds the parental benefit rate, we shall decrease the paid parental benefit.

    In 2016, the parental benefit rate was 390 euros. In 2017, it is 430 euros.

    Notify us if your current month gross income (profit before taxes) exceeds the parental benefit rate. The calculations are made on the income payment, not earning months.

    If you already know the size of the salary that you will receive each month, send us your gross salary amount in writing. If it happens that your income will be smaller in some months than the amount you told us, we shall pay more parental benefit to you retrospectively, after getting corresponding data from the Tax and Customs Board.

    How is Parental Benefit Re-Calculated?

    From the determined parental benefit amount, we shall deduct the income share exceeding the benefit rate, which is divided by two.

    Parental benefit - [(Income – Benefit rate) : 2] = Decreased parental benefit

    Whatever the case, we will pay you at least half of the determined parental benefit amount. If the decreased parental benefit is smaller than the parental benefit rate during the current year, you will receive the benefit that equals the parental benefit rate.

    Note that income tax has been deducted from the parental benefit amount that is transferred to your bank account.

    • Example 1. The parental benefit calculated for you is 1,500 euros. During the current month, you earn an income of 1,000 euros. We shall decrease the parental benefit: 1,500 - [(1,000 - 390) : 2] = 1,500 - 305 = 1,195. From this amount, we subtract income tax of 205 euros, and 990 euros will be transferred to your bank account.
    • Example 2. The parental benefit calculated for you is 500 euros. During the current month, you earn an income of 800 euros. We shall decrease the parental benefit: 500 - [(800 - 390) : 2] = 500 - 205 = 295. The decreased parental benefit amount is 390 euros. From this amount, we subtract income tax of 44 euros, and 346 euros will be transferred to your bank account.
    • Example 3. The parental benefit calculated for you is 2,000 euros. During the current month, you earn an income of 2,800 euros. We shall decrease the parental benefit: 2,000 - [(2,800 - 390) : 2] = 2,000 – 1,205 = 795. The decreased parental benefit amount is in this case half of the parental benefit calculated for you, or, 1,000 euros. From this amount, we subtract income tax of 166 euros, and 834 euros will be transferred to your bank account.

    If the employer delays with your salary payments during the parental benefit payment period and transfers the several months’ salary to you at once, we treat the income to be received during several months. To do so, you must present proof evidencing when should have the salary really been paid out.

    • Example. If the employer was supposed to pay you a salary of 500 euros in October and 500 euros in November but transferred 1,500 euros in December, our calculations consider as if you have received 500 euros per month.

    There are some cases when we do not decrease the parental benefit:

    • During the first parental benefit payment month you were paid salary that was earned before the beginning of the parental benefit period;
    • During the last parental benefit month you were paid salary that you earned after the end of the parental benefit period;
    • The Unemployment Insurance Fund paid you compensation in the case of the employer’s insolvency;
    • If, at the fault of the employer, you did not receive your income earned before the beginning of the parental benefit payment period in a timely manner.
     

    Withdrawals from the family benefits

    If we have paid you family benefits that you were not entitled to, you must return the received amounts.

    If you received more parental benefit than you were actually entitled to, we can subtract the excess from the benefits paid to you currently. In this case, we will pay you at least half of the parental benefit rate per month (215 euros in 2017).

    If the parental benefit period is over, we can continue the withdrawals from the family benefits paid to you.

    We can discount the excess family benefits from your parental benefit or maintenance allowance. When making such withdrawals, we will offset 20 per cent from the parental benefit or maintenance allowance amount.

    When receiving the bailiff’s formal note, we are obliged to make withdrawals from your parental benefit.

    When we have ordered you to repay the excessively received amounts but you do not fulfil the obligation by the set due date, we are entitled to turn to the bailiff for levy of execution. In this case, you must also pay for the execution proceedings costs.

     

    Recalculating the family benefits

    The Government of the Republic imposes a new minimum salary rate for each year. We shall recalculate your parental benefit on January 1st if:

    • The parental benefit appointed to you equalled the minimum salary rate of last year;
    • The parental benefit appointed to you exceeded the minimum salary rate of last year, but is below this year’s minimum salary.

    The new parental benefit amount equals the minimum salary rate valid during the current year.

    At the beginning of a new calendar year we will not recalculate the parental benefit if:

    • The parental benefit equals the parental benefit rate;
    • You got the maximum amount of parental benefit and new year, a new maximum amount has been imposed;
    • With intervals, you have applied for benefits for the same child. In this case, the parental benefit remains the same – except when the parental benefit recalculation is related to the minimum salary change.
     

    Family benefits’ recipient notification obligation

    The payment of family benefits is influenced by different events. We get information about them from different registers.

    However, information about some events does not reach the registers, or will be available in the databases too late. In this case, you are obliged to notify us yourself.

    You are obliged to notify us immediately if:

    • You move to another country, or if your child moves or goes to study in another country;
    • Your child stops or finishes studies in another country;
    • You family member – parent, guardian, parent’s spouse or other entitled person – begins to work in some European Economic Area country, or the Swiss Confederation;
    • You receive family benefits from a foreign country;
    • You start working while you get the parental benefit, and earn an income exceeding the benefit rate.
     

    Family benefits if a parent dies

    If a parent dies whom we pay family benefits, and if you are the other parent of that family, you must file an application to receive the family benefits.

    If the family’s single parent dies, or both parents of one family die, and you take the orphan into your family, then first contact your local authority. They will help you prepare all documents required for raising the child.

    The local authority helps you fill in the child’s foster care contract, or initiate the guardianship appointment court proceedings.

    After all the aforementioned, file an application to us for receiving family benefits. You can file the application through the state portal www.eesti.ee or in person at one of our customer services.

       

      Suspending or ending the family benefits’ payment

      You are entitled to decline the family benefits, or to stop making supplementary contributions to the funded pension account. To do so, you must file the application “Application to decline the family benefits / parental benefit / supplementary contributions to the funded pension account” to us and mark, which of the benefits you decline if:

      • You move away from Estonia,
      • The child no longer lives in your family,
      • You decline the family benefits in favour of the other parent.

      You can file the application electronically, marking the rows corresponding to the benefits that you decline.

      We will suspend the family benefits’ payments in the following cases:

      • The child is separated from the family,
      • The local municipality or town government has placed the child into a substitute home before the court ruling,
      • You are held as an imprisoned, detained, or arrested person in custody without the child,
      • Benefits brought to you in cash via courier have not been accepted for at least two months,
      • Your family benefit payment has bounced back from your bank for at least two months,
      • The missing person’s search proceedings have been initiated, concerning you yourself or your child,
      • Search proceedings have been initiated, concerning you yourself or your child, when you avoid the imprisonment sentence.

      We will stop the parental benefit payments if a court order has taken effect, and you are to be taken into custody.

      We will stop the family benefits’ payments if:

      • You have filed an application to decline the family benefits,
      • You move to another country,
      • Your parental rights have been removed,
      • Your child has been given under guardianship or to foster care,
      • Your child has been placed into substitute home.
       

      Replacement of the recipient of family benefits and the supplementary contributions to the mandatory funded pension account

       

      Vanematel on õigus otsustada kumb vanematest perehüvitisi ja kohustusliku kogumispensioni sissemakseid saab. Kui üks vanematest juba saab perehüvitisi, on võimalik saajat vahetada.

      Applying for the replacement of the recipient

      If you have been the person receiving the family benefits and getting the supplementary contributions to the mandatory funded pension account, and the other parent wishes to receive these in the future, you must file an application to stop receiving these. The other parent must file an application for getting the benefits.

      The family benefits shall be paid to the new recipient starting from the following months, and the supplementary contributions to the mandatory funded pension account starting from the day after filing the application.

      We treat the application to decline the benefits equal to giving permission to change the recipient of benefits.

      You can file the application at our customer service. If you come alone, bring along the other parent’s written consent either on our template or in free form, on paper. Also, take your ID card or passport with you.

      You can fill in the application at home and send the application (which both parents have digitally signed) at info@sotsiaalkindlustusamet.ee, or post it on paper (signed by both parents) to Endla 8, Tallinn, 15092

      Parental benefit re-calculation if the recipient changes

      When calculating the parental benefit amount for the new recipient, we shall consider their income during the same calendar year that was used as the calculation basis for the parental benefit paid to the former recipient.

      The exception is a situation when the parental benefit of the former recipient has been calculated based on the income used for calculating the parental benefit for the first child and the new benefit applicant has not received any parental benefit with the first child. In this case, the parental benefit amount is re-calculated based on the applicant’s income earned during the calendar year preceding the beginning of the current parental leave.

      • Example. The family has two children. The first child was born 15.12.2014, and the second 19.08.2016. Mother was paid the parental benefit with the first child and is paid parental benefit again starting from 01.11.2016. Her parental benefit is calculated based on her 2013 income, as it is greater than her income of 2015. The father wishes to receive parental benefit from 01.01.2017. As the father did not receive any parental benefit with the first child, his parental benefit amount will be calculated based on his income during 2015.
       

       

      Kati Kümnik

      head of the compensations department

      Kati Kümnik organizes and directs the work of the compensation department: sets goals, gives instructions to officials, and performs and mediates tasks related to the organization of pensions and family allowances. She also advises the Social Insurance Board on issues related to family allowances and organizes the development of the allowances system.

       
      info@sotsiaalkindlustusamet.ee