TALLINN - The Riigikogu has approved an amendment to the Family Benefits Act, according to which the parental benefit paid at the minimum wage rate will be recalculated whenever the minimum wage changes, and no longer only at the turn of the calendar year.
According to Onne Pillak, chairwoman of the Reform Party parliamentary group, this will make the calculation of parental benefits more flexible and improve the financial well-being of families with children.
"The parental benefit has had a positive effect on the birth rate. However, it also needs to be updated. We in the Reform Party have submitted more comprehensive proposals on how to reform the parental benefit system to offer young families greater security and strengthen protections for consecutive births. But before we get to those changes, it's important to take these more immediate steps," Pillak said.
According to Pillak, until now, the amount of the parental benefit depended on the minimum wage as of January 1. "This logic has worked, as the minimum wage has usually increased at the beginning of the year. But life is changing," she noted.
She cited this year's situation, where employers and trade unions agreed on a minimum wage increase effective from April 1. "Under the current system, this increase would only be reflected in parental benefits next year. Such a long delay is not fair to families," Pillak explained.
"As early as the beginning of May, the parental benefit at the minimum wage rate will increase from the current 886 euros to 946 euros. This means an additional 60 euros of support for families per month," she added.
According to Pillak, the amendment will also help avoid future situations where an agreement on the minimum wage is reached after the start of the year, causing an unreasonable delay in the increase of the parental benefit.
The change affects approximately 1,600 recipients of parental benefit.
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