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Pension Calculation

Pension formula:

The pension amount consists of three parts.

  1. The pension base part is the basis that is the same for all different pension types. Starting from April 1st, 2018, the base part is 175,439 euros.
  2. 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, 2018, the yearly rate is 6,161 euros.
  3. 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, 2018, the yearly rate is 6,161 euros.
 

B

BASE

S

QUALIFICATION PERIOD PART

K

INSURANCE PART

P

PENSION

175,439

yearly rate x pension qualifying period

yearly rate x total of insurance components

=

 

Example 1.  A person has 15 years of pension qualifying period but no insurance part. The base amount is 175,439  euros. The qualifying period is 15 years multiplied by the yearly rate 6,161, which totals 92,415
 euros. As there is no insurance part, the pension amount is base (175,439 euros) and qualification period part (92,415 euros) added up, which means the pension amount is 267,85 euros.

 

BASE

QUALIFICATION PERIOD PART

INSURANCE PART

PENSION

175,439

6,161

15

92,415

6,161

0

0

267,85

 

Example 2. A person has 25 years of pension qualifying period and 10 years’ worth of insurance components. The base part size is 175,439 euros. The qualifying period part is 25 years multiplied by the yearly rate 6,161, which totals 154,025 euros. The insurance component size is 10 years multiplied by the yearly rate 6,161, totalling  61,61 euros.
To find the total pension amount, the base part 175,439 euros, qualifying period part 154,025 euros, and the insurance component size 61,61 euros are totalled up, resulting in the pension of 391,07 euros.

BASE

QUALIFICATION PERIOD PART

INSURANCE PART

PENSION

175,439

6,161

25

154,025

6,161

10

61,61

391,07

 

Example 3. A person has 30 years of pension qualifying period and the insurance components also total 30. The base part size is 175,439 euros. The qualifying period part is 30 years multiplied by the yearly rate 6,161, which totals 184,83 euros. The insurance component size is 30 years multiplied by the yearly rate 6,161, totalling 184,83 euros.
To find the total pension amount, the base part 175,439 euros, qualifying period part 184,83 euros, and the insurance component size 184,83 euros are totalled up, resulting in the pension of 545,1 euros.

BASE

QUALIFICATION PERIOD PART

INSURANCE PART

PENSION

175,439

6,161

30

184,83

6,161

30

184,83

545,1

 

Calculator for the I pension pillar  http://www.pensionikeskus.ee/eesti-pensionisusteem/kalkulaatorid/1-samba-kalkulaator/

 

 
 

 

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. She also advises the Social Insurance Board on issues related to pensions and organizes the development of a pension system.

 
info@sotsiaalkindlustusamet.ee