TALLINN – The Estonian government approved on Thursday of the pension index decree that increases pensions by 5 percent starting April 1, Postimees Online reports.
The government set the state pension index value at 1.05 in 2013. That means that pensions will increase by an average of 5 percent. The index depends 20 percent of consumer price annual growth and 80 percent of the annual growth of the social tax pension insurance share.
The cost of indexation of state pensions is around 51 million euros in 2013.