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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.

 

Additional info

 

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.

     

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    Income tax on the parental benefit

    Similar to your wages, the parental benefit is also taxable income. It is possible to claim an exemption from income tax on the parental benefit. If you would like to use the exemption from income tax, after receiving the decision on parental benefit, please submit an application electronically in the state portal eesti.ee, using the service Tulumaksuvabastuse taotlemine. The same service can be used to change the sum of the desired income tax exempt amount or waive your tax exemption.  Please note, as of 01 January 2018, all of your monthly gross income subject to income tax must be added together prior to using the income tax exemption.  The income tax exemption application can be submitted each month. In order for the income tax exemption to take effect in the month following the submission of the application, the application must have reached us by the 19th of the month, at the latest.

    Example 1. In connection with the birth of your second child the parental benefit begins on 10 April 2018 and in the first month of payment of the parental benefit you are paid the difference between the parental benefit and the birth benefit of EUR 1500. The amount of the parental benefit for 21 days in April is EUR 840. In total you receive EUR 2340 in the first month of payment of the parental benefit.  Therefore, you have no right to the income tax exemption during the first month. The amount of the parental benefit for May is EUR 1200, 

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    Parental benefit and working as of 01 March 2018

    If you continue to work and earn income while receiving parental benefit, the amount of parental benefit you receive will be dependent upon your gross income.

    The basis for the calculation is the maximum amount of parental benefit (we also use the term maximum amount of benefit) set forth in the Family Benefits Act.

    If your income is less than half of the maximum amount of benefit, then the amount of parental benefit paid to you shall not be reduced. If your income exceeds half of the maximum amount of benefit, we will reduce the amount of the paid parental benefit.

    2018. In 2018 half of the maximum amount of the benefit is EUR 1544.78.

    If you know that your monthly wage will be in excess of EUR 1544.78, then we ask that you notify us in writing, by sending a free form notice indicating the amount of your gross wage to the e-mail address info@sotsiaalkindlustusamet.ee. If it so happens that you end up receiving less income for some months, if you let us know then we can pay you additional parental benefit after having received the data from the Tax and Customs Board.  Please note, the calculation is based on the income paid to you, not according to which month you received the income. The easiest thing to do is to allow your organisation’s accountant to complete and sign a form, which can be found here. (PDF)

    How does the recalculation of the parental benefit take place? We will deduct half of the maximum amount of benefit from the granted parental benefit. After which we will divide the obtained sum by two:

    Parental benefit - [(gross income – EUR 1544.78.) : 2] = reduced parental benefit

    Please note that in any case we will pay you parental benefit at the amount of the benefit rate. In 2018, the benefit rate was EUR 470.

    Example 1. Your designated parental benefit is EUR 1500, and during the month you earn a gross income of EUR 1700.  In that case, we will reduce the parental benefit according to the formula: 1500 - [(1700 – 1544,78) : 2] = 1500 – 77.61 = 1422.39

    Example 2. Your designated parental benefit is EUR 500, and during the month you receive a bonus of EUR 2000. In that case, we will reduce the parental benefit according to the formula: 500 - [(2000 - 1544,78) : 2] = 500 – 227.61 = 272.39 In the given example, the amount of the reduced parental benefit is smaller than the parental benefit rate, as a result of which we pay parental benefit to the extent of the rate of parental benefit, which is EUR 470.

    If your employer pays you several month’s wages at one time in a single month during the parental benefit period, when calculating the parental benefit sum we will take into account the income as having been received over a period of several months. In that case, we ask that you submit to us a written certificate from your employer, in which it can be seen when the wages should have actually been paid.

    Example 3. If the employer was supposed to pay you EUR 800 in wages in October, and EUR 800 in wages in November, but paid you EUR 2400 in December, then when calculating the amount of the parental benefit we will take into account that you have received EUR 800 for three consecutive months.

     

    There are some exceptions, in the case of which we will not reduce the parental benefit:

    • you were paid income in the first month of payment of the parental benefit, which you had earned prior to the start of the parental benefit.  We consider calendar months to be the payment month for the parental benefit, for the calendar days of which the benefit is paid.
    • you were paid income during the month of payment of the parental benefit, which you had earned following the end of the parental benefit.
    • the Unemployment Insurance Fund paid you compensation in the case of the insolvency of your employer.
    • if it is the fault of your employer that you have not been paid the income earned before the parental benefit in a timely manner

    https://www.eesti.ee/et/toetused-ja-pensionid/toetused-ja-huevitised/vanemahuevitis/ 

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    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.

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    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.

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    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.

    Additional info

     

    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.

      Additional info

       

      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.

      Additional info

       

      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.

      Additional info

       

       

      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