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					     LIS variable       V2 Mandatory Employer Contributions
       Contents         Social Tax: compulsory employers' social security contributions
(national programmes)   VARIABLE NOT SEPARATELY AVAILABLE IN ORIGINAL SURVEY (INCLUDED IN V11)
                        First Law: Estonian Social Tax Law of 1991 (as amended in 1992 and 1994)
     Legislation
                        New system: Social Tax Act of April 1998 (fully implemented since 1 April 2000)
      Coverage          All employers.
                        National Social Insurance Board (old-age, survivors, disability and basic/National pensions)
      Beneficiary
                        Estonian Sickness Fund (services of medical tretment, cash benefits for sickness, maternity, nursing
(financed programmes)
                        or work injury and compensations for pharmaceuticals)
Basis of assessement    Employers' payments in cash and in kind made to natural persons.
                        Social Tax includes:
                        - a 20% rate for pension insurance (first pillar under the new system)
                        - a 13% rate for health insurance.
        Rates
                        Under the new system, there is no income ceiling for the contributions and there are minimum
                        contributions based on the minimum salary for full-time work (EEK 1,600 a month in 2002) and on
                        minimum earnings for part-time employment (EEK 700 a month in 2002).

                        Taxes are due monthly and the remittance of tax is made congruent with the remittance of
                        withholding tax; the tax is paid by the 10th day of the following month.
     Collection
                        Under the new system, the contributions paid by ech person are accounted individually; this enables
                        to link pension benefits to individual contributions made by each person during his/her whole career.
     LIS variable       V7 Mandatory Contributions for Self-Employment
       Contents         Social Tax: compulsory social security contributions for self-employed
(national programmes)   VARIABLE NOT SEPARATELY AVAILABLE IN ORIGINAL SURVEY (INCLUDED IN V11)
                        First Law: Estonian Social Tax Law of 1991 (as amended in 1992 and 1994)
     Legislation
                        New system: Social Tax Act of April 1998 (fully implemented since 1 April 2000)
      Coverage          All private entrepreuneurs (memebers of family businesses, farmers and self-employed persons).
                        National Social Insurance Board (old-age, survivors, disability and basic pensions)
      Beneficiary
                        Estonian Sickness Fund (services of medical tretment, cash benefits for sickness, maternity,
(financed programmes)
                        nursing, adoption or work injury and compensations for pharmaceuticals)
                        Natural persons pay tax on income derived from entrepreneurship, but for each insurable person
                        able to work not less per month than the amount calculated from the monthly rate established by the
Basis of assessement
                        state budget for the the budgetary year, and not more than the amount calculated from fifteen-fold
                        minimum wage.
                        Social Tax includes:
        Rates           - a 20% rate for pension insurance (first pillar under the new system)
                        - a 13% rate for health insurance.

                        Taxes are due monthly and the remittance of tax is made congruent with the remittance of
                        withholding tax; the tax is paid by the 10th day of the following month.
     Collection
                        Under the new system, the contributions paid by ech person are accounted individually; this enables
                        to link pension benefits to individual contributions made by each person during his/her whole career.
     LIS variable       V11 Income Taxes
                        Personal Income Tax
      Contents          Social Tax
 (national schemes)     Land Tax
                        Customs duty
                          Personal Income Tax      Income Tax Act of December 1999 (entered into force 1.1.2000).
                                                   First law: Estonian Social Tax Law of 1991 (as amended in 1992 and
                                                   1994)
                               Social Tax
     Legislation                                   New system: Social Tax Act of April 1998 (fully implemented since 1
                                                   April 2000).
                               Land Tax            Law on Land Tax (effective July 1, 1993).
                             Customs duty
                                                   All resident natural persons and non-resident legal persons who derive
                          Personal Income Tax
                                                   taxable income.
                                                   All employers and private entrepreuneurs (members of family
                               Social Tax
                                                   businesses, farmers and self-employed persons).
      Coverage                  Land Tax           All land owners.
                                                   The customs duty is imposed on goods conveyed into the customs
                                                   territory of Estonia under the customs procedure “release for free
                             Customs duty
                                                   circulation”. This is Most Favored Nation (MFN) customs duty imposed
                                                   on goods, which originate from foreign states.
                                                   44% of the income tax paid by or withheld from a resident natural person
                                                   is received by the state and 56% is received by the local government of
                          Personal Income Tax
                                                   the taxpayer’s residence; the income tax paid by or withheld from a non-
                                                   resident is received by the state.
                                                   National Social Insurance Board (old-age, survivors, disability and
      Beneficiary                                  basic/National pensions).
(financed programmes)          Social Tax          Estonian Sickness Fund (services of medical tretment, cash benefits for
                                                   sickness, maternity, nursing or work injury and compensations for
                                                   pharmaceuticals).
                                                   The tax accrues 100 percent to local budgets of the primary level local
                                Land Tax
                                                   authority. The tax is administered by the National Tax Board.
                             Customs duty
                                                   Income tax is charged on income derived by a resident natural person
                                                   during one calendar year from all sources of income in Estonia and
                                                   outside Estonia, including:
                                                   - income from employment;
                                                   - business income;
                                                   - gains from transfer of property;
                                                   - rent and royalties;
                                                   - interest;
                          Personal Income Tax
                                                   - dividends;
                                                   - maintenance support, pensions, scholarships, grants, benefits, awards,
                                                   lottery prizes;
                                                   - insurance indemnities and payments from pension funds;
                                                   - income of a legal person located in a low tax rate territory.
                                                   The taxable income of a natural person does not include fringe benefits
                                                   (levied on employers), gifts and donations, dividends or other profit
                                                   distributions made by a resident legal person (leveid on the donor).
 Basis of assessment                               Employers: employers' payments in cash and in kind made to natural
                                                   persons.
                                                   Self-employed: natural persons pay tax on income derived from
                                 Social Tax        entrepreneurship, but for each insurable person able to work not less per
                                                   month than the amount calculated from the monthly rate established by
                                                   the state budget for the the budgetary year, and not more than the
                                                   amount calculated from fifteen-fold minimum wage.
                                                   National land tax is paid on all land except: (1) where economic activity is
                                                   prohibited; (2) land attached to buildings of diplomatic or consular
                                                   missions of foreign countries; (3) cemeteries and land under churches
                                  Land Tax         and temples of congregations; (4) land used by foreign country or
                                                   international organization. In addition, local land tax is not paid on land in
                                                   municipal ownership or land in general use based on the decision of the
                                                   local authority.
                                                   Customs duty is imposed on importation of certain goods: live animals,
                               Customs duty        agricultural products, foodstuffs (falling within headings 0102 - 2309 of
                                                   the Nomenclature of Estonian Commodities).
                                                   State pensions and public transfers are not subject to Personal Income
                          Personal Income Tax
                                                   Tax.
                                 Social Tax        Not applicable.
                                                   There are only 2 temporary exemptions, which are following:
                                                   - the rate of land tax for areas under cultivation used for the production
                                                   of agricultural products and for natural grassland shall be 0,1 to 2,0 per
                                                   cent of the assessed value of the land annually;
                                  Land Tax         - recipients of pensions may be exempted from the obligation to pay land
     Exemptions
                                                   tax to the extent of 0,1 hectares in cities and 1,0 hectare in rural
                                                   municipalities on the condition that the applicant for the tax exemption
                                                   uses the land for living and does not receive rent on the basis of the right
                                                   of use of land.
                                                   Customs duty is not imposed on goods which, pursuant to an
                                                   international agreement, are not subject to customs duty. Goods
                               Customs duty
                                                   originating from EU are not subject to the customs duty because of the
                                                   free trade agreement.
                        Personal Income Tax: The basic exemption deductible from the income of a resident natural
                        person during a period of taxation is EEK 9,600.
     Deductions         The following expenditure categories may be deducted from income tax base: maintenance
                        support, housing loan interests, training expenses, gifts, donations and trade union entrance and
                        membership fees, expenses related to business (up to a ceiling).
                        Personal Income Tax: Resident spouses who have been married to each other during the whole
                        period of taxation may submit a joint income tax return. A joint income tax return may be submitted
      Tax unit
                        also if the marriage was contracted during the period of taxation or if one of the spouses died
                        during the period of taxation.
                          Personal Income Tax Simple proportional tax rate of 26%.
                                                   Social Tax includes:
                                                   - a 20% rate for pension insurance (first pillar under the new system)
                                                   - a 13% rate for health insurance.
                                 Social Tax        Under the new system, there is no income ceiling for the contributions
                                                   and there are minimum contributions based on the minimum salary for
        Rate                                       full-time work (EEK 1,600 a month in 2002) and on minimum earnings
                                                   for part-time employment (EEK 700 a month in 2002).

                                                   Land tax rate is 0,1 - 2,5 percent of taxable value. Tax on land where
                                Land Tax           economic activity is restricted by law is charged either at 25, 50, or 75
                                                   percent of the tax rate on the decision of the Government of Estonia.
                             Customs duty          Tariff rates are between 0 – 59 % as WTO trade rules prescribe.
                                                   By witholding for most regular income sources, by advance payments for
                                                   business income, and by annual tax return for the remaining incomes.
                                                   Unless the inly income source is taxed at source, taxpayers are required
                          Personal Income Tax
                                                   to submit an income tax return to the local Tax Board office of his or her
                                                   place of residence concerning the income of a period of taxation not
                                                   later than by 31 March of the year following the period of taxation.

     Collection                                    Taxes are due monthly and the remittance of tax is made congruent with
                                                   the remittance of withholding tax; the tax is paid by the 10th day of the
                                                   following month.
                               Social Tax
                                                   Under the new system, the contributions paid by ech person are
                                                   accounted individually; this enables to link pension benefits to individual
                                                   contributions made by each person during his/her whole career.
                               Land Tax            Taxes are paid 3 times a year on 15th of April, July, and October.
                             Customs duty
     LIS variable       V13 Mandatory Employee Contributions
       Contents
                        In Estonia there are no compulsory employees' social security contributions
(national programmes)
      Legislation
       Coverage
      Beneficiary
(financed programmes)
 Basis of assessement
          Rate
       Collection
      LIS variable        V16 Sickness benefits
                          Cash benefits from Health Insurance, including:
       Contents           - compensation for illness or injury (incl. occupational accident or disease)
(national programmes)     - compensation for pregnancy or childbirth
                          - compensation for nursing a sick family member
                          Estonian Medical Insurance Law of 1991 (as amended in 1994) and Public Health Law of 1994.
      Legislation
                          Note: a new Health Insurance Act will enter into force in October 2002).

       Coverage           Insured employees, employers, farmers and individual workers, as well as registered unemployed.

                          Current affiliation to social security regardless of length of service, and temporary incapacity of work
 Qualifying conditions
                          as certified by the doctor or dentist treating the person.

                                                     60% of worker's average income for hospital treatment, 65% for
                                                     sanatorium treatment, 80% for outpatient care for each calendar day for
                                                     up to 120 calendar days.
                              Sickness benefits      100% of worker's average income for work injury caused by employer,
                                                     health damage, occupational disease, or work injury as a result of trying to
                                                     prevent a crime until the degree of disability has been determined.
                                                     Waiting period: one day.
                                                     100% of the insured's average income for 126 calendar days; in case of
       Benefits
                              Maternity benefits     multiple births, for 140 calendar days.
                                                     No waiting period.
                                                     80% of worker's average income for 7 calendar days if caring at home for
                                                     a family member over 14 years of age and for 14 calendar days if caring
                                                     at home for a child under 3 years of age (up to 16 for a disabled child) if
                              Nursing benefits       the parent providing care is ill.
                                                     100% of worker's average income for 14 calendar days if caring for a
                                                     child up to 14 years of age.
                                                     No waiting period.
Accumulation with other
       income
     Adjustment
                                                     Contributions from employers and self-employed. No government subsidy
                                                     (unless work injury if employer is insolvent, in which case transfers are
                                                     included in V25S1).
                             Financing principle
                                                     Benefits are paid out in cash by the employer and then set off against his
      Financing                                      health insurance constributions; for unemployed persons these cash
                                                     benefits are paid by the Regional Health Funds themselves.
                                 Taxation            Not subject to taxation.
                             Contributions from
                                  benefits           None.
     LIS variable         V19SR State old-age and survivors benefits n.e.c.
                          Old system (in force until March 2000): State Living Allowances, incl.:
                          - old-age pension (consisting of the basic amount, employment-related amount and special
                          supplements)
                          - disability pension (incl. permanent work injury and occupational diseases and pensions for
                          handicapped children)
       Contents           - survivor's pension
(national programmes)     - National pension.
                          New system (fully implemented since April 1, 2000): State Pension Insurance, incl.:
                          - old-age pension
                          - disability pension
                          - survivor pension
                          - National pension.
                          First laws: Estonian Pension Law of 1991 (suspended in 1992) and Resolution of the Estonian
                          Supreme Court on the Establishment of Living Allowances of 1992
                          Old sysytem: Law on State Living Allowances of 1993 (as amended in 1994), Law on
      Legislation         Superannuation Pensions and Law on Early Retiment Pensions of 1992 (as amended in 1993
                          and 1994)
                          New system: State pension Insurance Act of June 1998 and Social Tax Act of April 1998
       Coverage           All persons currently residing in Estonia.
                                                     Qualification period: 15 years of service.
                                                     Standard retirement age: 62 1/2 (men) and 57 1/2 (women) rising 6
                                                     months per year, until it reaches 63 for both men and women (2016).
                                                     Early-retirement: possible for those retiring from unhealthy jobs (5-10
                               Old-age pension       years earlier), for those rearing a handicapped child (5 years earlier),
                                                     for dwarfs (15 years earlier) and for employees in professions which
                                                     involve loss of professional ability before reaching the retirement age
                                                     after a qualifying work record (military personnel, pilots, policemen,
 Qualifying conditions
                                                     ballet dancers, teachers of schools for disabled children, etc.).
     (old system)
                                                     Full or partial permanent or long-term disability for work regardless of
                              Disability pension
                                                     pensionable length of service.
                                                     Survivors incapable of gainful activity. Survivors include: children,
                                                     siblings, grandchildren under age 18 or disabled, parent, surviving
                              Survivor's pension
                                                     spouse or guardian not gainfully employed and raising the deceased's
                                                     children, brothers, sisters or grnadchildren under 14 years of age.
                                                     Paid to men at least 65 years of age and women aged 60 or more who
                               National pension      had never worked.
                                                     Qualification period: 15 years of pensionable service in Estonia
                                                     counted as:
                                                     - the pensionable length of service obtained up to 31.12.98 (i.e. all
                                                     gainful activities for which the employer, self-employed or the state was
                                                     under the obligation to pay social tax, plus a number of equalised
                                                     periods for conscripts, registered unemployed, vocational students and
                                                     carers);
                               Old-age pension       - the pension insurance period obtained from 1.1.99 (acquired only on
                                                     the basis of payment of social tax).
                                                     Standard retirement age: 62 1/2 (men) and 57 1/2 (women) rising 6
                                                     months per year, until it reaches 63 for both men and women (2016).
                                                     Early retirement: possible up to three years before attaining standard
                                                     retirement age.
                                                     Deferment: possible.
                                                     Persons aged at least 16 years who have a permanent work incapacity
                                                     (lasting either 6 months, 1 year, 2 years, 5 years or until retirement
                                                     age) with the extent of at least 40% and with 1 to 14 years of
                                                     insurance coverage or credited pensionable service depending on the
                                                     age of pension claimant (no qualification period is required for 16 to 20
                                                     year olds).
                                                     Work incapacity is certified by medical expertise and expressed as the
                              Disability pension     percentage of loss of capacity for work in the following way:
                                                     - total work incapacity (100%): if the person is unable to earn any
 Qualifying conditions                               income in order to support him/herself as a result of a serious
    (new system)                                     functional impairment caused by an illness or injury;
                                                     - partial work incapacity (40-90%): if the person is able work and earn
                                                     income, but, due to functional impairment caused by an illness or
                                                     injury, is not able to perform suitable work in the extent corresponding
                                                     to the general national working time.
                                                     Non employed survivors if teh deceased insured had by the date of
                                                     death fulfilled the qualification period which would have been necessary
                                                     for the grant of a disability or old-age pension. Survivors include:
                                                     - children, siblings or grandchildren under age 18 (24 in case of
                                                     enrolment in daily studies); siblings and grandchildren are eligible if
                                                     they were maintained by the deceased insured;
                                                     - parent in pension age or permanently incapable to work;
                              Survivor's pension     - pregant widow from the 12th week of pregnancy;
                                                     - widow in pension age or permanently incapable to work if marriage
                                                     lasted at least 1 year;
                                                     - divorced spouse who reached the pension age or became
                                                     permanently incapable before divorce or within 3 years from divorce if
                                                     marriage lasted 25 years;
                                                     - parents or guardian who raises an up to 3 year old child of the
                                                     deceased insured.
                                                     Paid to all persons who are not entitled to an employment-related
                              National (or social)   benefit in case of old-age (old-age pension), work incapacity (disability
                                   pension           pension) or death of the beadwinner (survivors' pension).
                                                     Basic amount: basic (or national) pension (EEK 800).
                                                     Employment-related amount: 6.4% of the national pension rate for
                                                     each year of service.
                                                     Supplements for special categories (i.e. for participants in the Estonian
                                                     War of Independence 1918-1920, for pensioners bringing up children,
                               Old-age pension
                                                     participants of World War II, etc.): to be calculated on the basis of the
                                                     basic pension.
                                                     Living Allowance for working pensioners: 50% of basic pension, to be
                                                     raised to 100% if the monthly wage does not exceed the basic
                                                     pension..
                                                     The amount depends on the degree of disability for adults: EEK 1,210
                                                     for Group I invalids, EEK 1,025 for Group II and EEK 800 for Group II
                                                     invalids (i.e. the same as the basic pension).
       Benefits                                      Pension for handicapped children under 16 amounts to EEK 820 (EEK
     (old system)             Disability pension     860 if entitled to survivor's pension and EEK 1,045 if orphan).
                                                     In the case of permanent disability caused by work injury and
                                                     occupational diseases, the responsible employer pays the disabled
                                                     person compensation for the loss of earnings from which the disability
                                                     pension is substracted.
                                                     The amount depends on the survivor:
                                                     - EEK 860 for every adult;
                                                     - EEK 820 for every child under age 18;
                                                     - EEK 985 for an orphan.
                               Survivor pension
                                                     Funeral grant: EEK 1,500 until February 2000, EEK 1,650 threafter
                                                     In the case of death caused by work injury and occupational diseases,
                                                     the responsible employer pays the survivor compensation for the loss
                                                     of earnings from which the survivor pension is substracted.
                               National pension      EEK 800.
                                                     The general old-age pension consists of 3 additive elements:
                                                     - base amount: flat-rate amount (EEK 410 in 2000).
                                                     - length of service component: pensionable length of service (periods
                                                     acquired up to 31.12.98) multiplied with the value of one service year
                                                     (EEK 31.69 in 2002)
                                                     - insurance component: sum of annual pension insurance coefficients
                               Old-age pension       (amounts of social tax register after 1.1.99) multiplied with the value of
                                                     an annual coefficient (1.0 in 2000).
                                                     Early retirement old-age pension: pension shall be reduced by 0.4%
                                                     for each relevent month; once granted, the early retirement pension is
                                                     retained also after attaining the pension age.
                                                     Deferred old-age pension: pension shall be increased by 0.% for each
                                                     relevent month.
                                                     Duration: from the onset of the work incapacity for the duration of
                                                     permanent work incapacity (by the latest until retirement age, when the
                                                     pension is automatically converted into an old-age pension).
                                                     Amount: percentage corresponding to the loss of capacity for work of
                                                     the calculation basis, but not less than the national pension rate, where
                              Disability pension
                                                     the calculation basis is the higher of the following two amounts:
                                                     - amount of an old-age pension clalculated from the individual's actual
                                                     pensionable length of service and pensin insurance coefficients;
       Benefits
                                                     - amount of an old-age pension for a person with 30 years of
     (new system)
                                                     pensionable length of service.
                                                     Duration: from the death of the insured for the period during which the
                                                     recipient satisfies the established criteria (age, status of permanent
                                                     work incapacity, etc.), or until 12 months after remarriage.
                                                     Amount: percentage of the calculation base depending on the number
                                                     of dependent family members eligible to a survivor's pension: 40% for 1
                                                     family member, 70% for 2 and 100% of the calculation base for 3 or
                               Survivor pension      more family members, where the calculation base is the higher of the
                                                     following two amounts:
                                                     - amount of an old-age pension clalculated from the deceased insured
                                                     persons' actual pensionable length of service and pensin insurance
                                                     coefficients;
                                                     - amount of an old-age pension for a person with 30 years of
                                                     pensionable length of service.
                                                     The amount is linked to National Pension Rate (NPR: EEK 800 in
                                                     2000) in the following way:
                                                     - National old-age pension = NPR;
                               National pension      - National disability pension = percentage corresponding to the loss of
                                                     capacity for work of the NPR;
                                                     - National survivors' pension = 40%, 70% or 100% of the NPR
                                                     depending on the number of dependent family members.
                          Old-age pension is payable irrespective of engagement in any gainful activity (under the new
Accumulation with other   system this is not the case for early retirement).
       income             Persons eligible for more than one type of pension/living allowance are only entitled to collect
                          from one source.
                          The national pension rate is fixed by Parliament in the annual state budget.
                          The value of one year of pensionable length of service and the value of an annual pension
                          insurance coefficient (under the new system) are determined by the Governemnt depending on
      Adjustment
                          budgetary constraints.
                          Note: starting from 1.4.02, pensions will be indexed annually on 1 April to the increase in
                          consumer prices and the increase in social tax revenues.
                                                     Employers' and self-employed contributions (see V2 and V7), plus
                                                     government subsidies for some pensions (disbility pension to disabled
                              Financing principle
                                                     child and pension supplements).
                                                     Pay-as-you-go system.
                                                     Pensions are not subject to taxation.
      Financing
                                                     Note: starting from 2002, state pension will constitute, in principle, a
                                   Taxation
                                                     taxable income; in practice, there will be a very high non-taxable
                                                     minimum).
                              Contributions from
                                   benefits          None.
      LIS variable        V20SR Child/family benefits n.e.c.
                          Child benefits, including:
                          - Birth grant
                          - Child allowance
                          - Child care benefit (replaced the Maintenacne benefit since 2000)
       Contents           - Single parent's child allowance
(national programmes)     - Allowance for a child of servicemen
                          - Child school allowance
                          - Supplementary benefit for families with 4 or more children
                          - Foster care and guardianship allowance
                          - Independent life grant for orphanage children
      Legislation         Child Benefit Law of April 1992 (as amended in 1994) and law of 1998
       Coverage           Permanent residents, aliens with temporary residence permits and refugees.
 Qualifying conditions    All children until age 16, age 19 if full-time student.
                                                      Lump-sum paid at 25 times the child allowance rate (EEK 3,750) for first
                                   Birth grant        child and multiplets, and at 20 times the CAR (EEK 3,000) for 2nd
                                                      subsequent children.
                                                      Paid monthly to families with one child at one CAR (EEK 150), with 2
                                Child allowance       children at 1.5 CAR (EEK 225) and for each additional child 2 times the
                                                      CAR (EEK 300).
                                                      Paid to both non-working and working parents caring for each child under
                                                      the age 2 at 0.5 times the child care benefit rate (EEK 600) and for each
                              Child care benefit      child between ages 2 and 3 at 0.25 times the CCBR (EEK 300).
                                                      Since 2000 also paid for children of age 3-8 in families with under 3 year-
                                                      olds and with 3 or more children (EEK 300)..
                          Supplementary child care    A parent with 4 or more children is paid until youngest completes first
       Benefits                  allowance            grade at 2 times the CAR.
                            Single parent's child     Paid until child reaches age 16 (19 if full-time student) at 2 CAR (EEK
                                 allowance            300).
                           Allowance for a child of
                                                      5 times the CAR (EEK 750) while person is in military service.
                                servicemen
                          Child's school allowance Annual payment for each child in school at 3 times the CAR (EEK 450).
                           Supplementary benefit      A parent with 4 or more children is paid until youngest completes first
                            for families with 4 or    grade (EEK 500). Since 2000 paid for every child and not any more for
                                more children         school-going children only.
                           Foster care allowance      2 times the CAR (EEK300).
                          Start in independent life Paid to orphans or persons without parental care who lived in foster home
                                     grant          or school for disabled for at least 3 years in a lump-sum of EEK 5,000.
Accumulation with other
       income
                          The Child Allowance Rate and the Child Care Benefit Rate are both set annually by the Parliament
      Adjustment
                          within the State Budget Act.
                             Financing principle    Fully financed by the State.
                                   Taxation         Not liable to taxation.
      Financing
                              Contributions from
                                   benefits         No contributions.
      LIS variable        V21SR Unemployment compensation benefits n.e.c.
                          Unemployment benefit (starting in 2003, the risk of unemployment is to be covered by a two-tier
                          system of cash benefits: contributory earnings-related unemployment insurance benefit and non-
       Contents
                          contributory flat-rate state unemployment allowance)
(national programmes)
                          Early retirement benefit
                          Retraining scholarship
                          First law: 1991.
      Legislation         Current law: 1994 (implemented in 1995)
                          New Social Protection of the Unemployed Act (entered into force on 1.10.2000)

       Coverage           Permanent residents aged 16 and over (up to pensionable age) who are capable of gainful activity.

                          Must be between age 16 and retirement age, registered as unemployed by the employment service
                          and with 180 days of work during the 12 months before becoming unemployed; the following periods
 Qualifying conditions    are counted towards the qualifying period: full-time study in an educational institution, service in the
                          military, raising a child under age 7, treatment in hospital, nursing the sick, being disabled or elderly,
                          or in detention.
                                                       EEK 400 for 180 calendar days (extended to 270 with the new Act).
                                                       May be extended up to 90 days if raising 3 or more children under age 18
                           Unemployment benefit
                                                       or if family income is below poverty level, during period of vocational
       Benefits                                        training or community placement.
                                                       Same amount as unemployment benefit extended by further up to 180
                           Early retirement benefit
                                                       days if less than 180 days remain until retirement age.
                           Retraining scholarship EEK 600 per month to unemployed persons attenting retraining.
Accumulation with other
       income
     Adjustment           No automatic indexation.
                             Financing principle   Fully financed by the state.
                                  Taxation         Not liable to taxation.
      Financing
                             Contributions from
                                  benefits         No contributions.
     LIS variable         V25SR Social assistance cash benefits n.e.c.
                          Subsistence benefits (income support), including:
                          - benefits for ensuring minimum subsistence level (incl. compensation for dwelling expenses until
                          September 2000)
                          - dwelling benefit (since 1.10.2000)
       Contents           - additional benefits
(national programmes)     Social benefits (incl. burial benefit, compensation for occupational accident or occupational
                          disease, benefit for medical treatment in health resort, supplementary holiday payments, additional
                          child care leave, paid breaks for feeding the child, other benefits)
                          Benefits for disabled persons (incl. disabled child allowance, caregiver’s allowance, disabled
                          parent’s allowance, education allowance, transport allowance, telephone allowance).
      Legislation         Subsistence benefits: 1994
       Coverage           All residents (incl. persons with temporary residence).
                                                      Benefit for ensuring minimum subsistence level: paid monthly to all
                                                      persons whose income after paying for dwelling remains below
                                                      subsistence line established by Government (the basis for the means-
                             Subsistence benefits test is the preceding three months income).
                                                      Dwelling benefit: since October 2000, dwelling compensation is only
 Qualifying conditions
                                                      granted to persons whose income is lower than dwelling expenses
                                                      (standard size).
                                Social benefits       Various, according to the benefit.
                             Benefits for disabled
                                                      Disablity status (no means-test).
                                    persons
                                                      The subsistence benefit guarantees low income families the established
                                                      subsistence level (poverty line).
                             Subsistence benefits
                                                      Average amounts for 2000: EEK 602 for minimum subsistence benefit
                                                      and EEK 343 for additional benefits.
                                                      Burial (or funeral) benefit: EEK 1,500 until February 2000, EEK 1,650
                                                      threafter.
                                                      Compensation for occupational accident or occupational disease: same
                                                      amount as from Health Fund (i.e. 100% of average earnings), but paid
                                                      from state budget if employer is insolvent.
                                                      Benefit for medical treatment in health resort: ?
                                                      Supplementary holiday payments: holiday payment for over 28 days to
                                Social benefits       the under-aged (juvenile) and the disabled (the basis for calculating them
                                                      is the average salary), and extra 3 to 6 days of holidays (depending on
                                                      the number ofunder 14 year-old children) to mothers, fathers or
       Benefits                                       guardians for child care leave (EEK 66 per day).
                                                      Additional child care leave: one monthly extra day-off for the parent of
                                                      the disabled child (EEK 66 per day).
                                                      Paid breaks for feeding the child: work-breaks granted to mothers for
                                                      feeding the under 1.5 year-old children (linked to average salary).
                                                      Disabled child allowance: EEK 840 per month for a child with moderate
                                                      disability and EEK 940 per month for a child with severe or profound
                                                      disability.
                                                      Caregiver’s allowance: EEK 300 per month paid to non-working parent
                             Benefits for disabled or guardian of child.
                                    persons           Disabled parent’s allowance: EEK 300 per month.
                                                      Education allowance: EEK 300 per month paid to non-working disabled
                                                      students.
                                                      Transport allowance: on average EEK 50 per month.
                                                      Telephone allowance: on average EEK 29 per month.
Accumulation with other
       income
     Adjustment           Not applicable.
                             Financing principle    Fully financed by the state.
                                  Taxation          Benefits are not subject to taxation.
      Financing
                             Contributions from
                                   benefits         None.
      LIS variable        V29 Value of non-cash medical benefits
                          Non-monetary social assistance
       Contents
                          NB The original variable contains also consumer goods from non-profit organisations (mainly from
(national programmes)
                          churches, most of them are second-hand clothes).
      Legislation         Social Assistance Law of 1995
       Coverage           All residents.
 Qualifying conditions    Means-test.
                          Perambulators paid by local authorities, riding to school and back for free for schoolchildren,
       Benefits
                          telephone subsidies, dwelling benefits and institutional support.
Accumulation with other
       income
     Adjustment
                             Financing principle   Public benefits are fully financed by the State/local authorities.
                                  Taxation         Not liable to taxation.
      Financing
                             Contributions from
                                  benefits         No contributions.
      LIS variable        V31 Value of non-cash education benefits
       Contents           Non-monetary other transfers
(national programmes)     NB The original variable contains also in-kind transfers from private institutions and persons.

      Legislation
       Coverage           All residents.
 Qualifying conditions
                          In-kind stipends from state, stipends and allowances for studies from fund from Estonia, stipends
       Benefits           and allowances from some foreign country, other allowances for self-education, for development of
                          production activity for self-employer and gifts.
Accumulation with other
       income
     Adjustment
                             Financing principle     Public benefits are fully financed by the State/local authorities.
                                  Taxation           Not liable to taxation.
      Financing
                             Contributions from
                                  benefits           No contributions.
The present document draws extensively from the following sources:

1. "Social Protection in Estonia", Estonian Ministry of Social Affairs, 2000
(http://www.sm.ee/gopro30/Web/gpweb.nsf/pages/indexeng.html).
2. "Summary of the tax system", Estonian Ministry of Finance, 2002
(http://www.fin.ee/eng/index.html?id=3814).
3. Social Security Programs Throughout the World, 1999
(http://www.ssa.gov/statistics/ssptw/1999/English/index.html).
4. "The social dimension of enlargement: social law and policy in the Czech Republic, Estonia, Hungary,
Poland and Slovenia", European Parliament, Working Paper SOCI 100, 1998
(http://www.europarl.eu.int/workingpapers/soci/100/default_en.htm).

5. "ECONOMIC AND SOCIAL CHANGES IN THE BALTIC STATES IN 1992-1994", Estonian Academy
of Sciences, Institute of Economics, 1995 (http://www.ibs.ee/ibs/economics/esc/index.html).

				
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