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For the pension recipient


Pension payments

We shall pay pension, as you wish, either:

  • To your bank account in Estonia;
  • To another person’s bank account if you fill in the form at our customer service, or forward the notarially certified application;
  • At your cost, in cash to your home by courier;
  • At your cost, to the pension recipient’s bank account in a foreign country.

Your pension will be brought to you in cash by a courier for free, if you have reduced mobility, or when you live in the countryside and the bank services are hard to access. For this, you should file an application explaining the need to receive the pension by courier.

If the courier came while you were not at home, the courier will take your money back. If you have not received your pension for six months, we shall halt the pension payments. You should file an application to continue the pension payments. We will pay your pension starting from the suspension.

If your pension is brought but you are at a hospital, you can authorize someone to receive your pension instead of you. The authorization is attested by the manager of the medical institution (head of the medical institution), and such a document is valid also retrospectively (by six months) to take out the previously unreceived pension.


Pension and income tax

The applicable income tax rate in Estonia is 20%. From the beginning of year 2023, the general income tax exemption rate is up to 654 euros per month. The amount of the tax exemption depends on how much is a person's annual income. From the beginning of year 2023, a separate tax-free income applies to people who have reached retirement age – for them the average pension is income tax-free. In 2023, it will be 704 euros per month, or 8448 euros per year.

From the benefits paid by the Social Insurance Board subject to income tax are: pensions, compensation for damages and  parental  benefit. The rest of the benefits and allowances are tax-free.

Check out the changes to the taxation of pensions in 2023.

More information about benefits and pension taxed with income tax



Pension and employment

Earning a profit taxed with social tax, or being an entrepreneur, is considered as working.

In general, working does not rule out receiving a pension. When becoming of the pensionable age, you can continue working and receive both salary and old-age pension.


The previous early retirement pension is not paid simultaneously with employment. Before reaching the retirement age, the possibility to receive pension and wages at the same time is enabled with the new flexible pension taking effect from 2021. Read more about the flexible pension here.

Of the survivor’s pension recipients, only children (until the age of 18, or, in the case of students, until the age of 24) are allowed to work and receive the pension simultaneously. No other survivor’s pension recipients are allowed to work and receive the pension simultaneously.

Superannuated old-age pension recipients (specified in lists 1 and 2) are not allowed to work on positions contributing to the superannuation. When becoming of the pensionable age, the recipients of the superannuated pension are entitled to continue working on positions contributing to the superannuation, and to receive the pension simultaneously.

We will stop paying the earned years’ pension if the pension recipient continues to work on the position for which the pension has been appointed. When continuing working on a position that does not contribute to the earned years’ pension, the pension shall be paid in full.

Police, prison, and rescue workers may continue working on their profession and receive the earned years’ pension.


Pension offsetting

In life, situations could occur when a bailiff needs to withhold a part of your pension, or you have been paid more pension than you actually had a right for, and this excess amount must be returned to the state.

Deductions can be made from the pension:

  • On the basis of the Code of Enforcement Procedure (for example, withdrawals by the bailiffs)
  • Based on decisions by the Social Insurance Board (withdrawals to compensate the excess pension payments).

Based on the Code of Enforcement Procedure, up to 50% of the pension can be deducted, but the person must receive at least half of the national pension rate (link rahvapensionile). If you disagree with the bailiff’s demand, we suggest you contact the bailiff directly, or consult the Estonian Chamber of Bailiffs and Trustees in Bankruptcy.

Based on decisions by the Social Insurance Board, up to 20% of the pension can be deducted, but you receive at least half of the national pension rate. According to your agreement with the Social Insurance Board, also a smaller or larger amount can be deducted from your pension.


Pension certificate

Pension certificate is a pensioner’s document. It is not a personal identification document, but certifies that the person receives pension from us. The pension certificate is issued to you together with the pension payment decision.

As of 1 July 2019 the Social Insurance Board issues pension certificates to new pensioners in a new form – as plastic cards. Earlier pension certificates on paper will also remain in effect.

If you lose the pension certificate, the customer service will issue a duplicate.

Holders of the pension certificate are offered different discounts at several banks, transport companies, entertainment establishments, concert venues, museums, spas, health centres, pharmacies, cosmetics, ice arenas, etc. Discounts offered for the holders of the pension certificate are directly related to the service providers, not the Social Insurance Board.