And the money kept rolling in… Congratulations on a baby!
Having a baby is one of the most important decisions a person will make in life. Bringing another human life into the world might seem a huge responsibility and even a bit risky, yet there are lots of benefits and support both Majorel and Estonian state or local municipality offer to future moms, dads and young families.
MAJOREL MARRIAGE SUPPORT
Majorel offers you 250 euros gross for getting married. Yay! Just send a copy of your marriage certificate to HR and you’ll receive the benefit within 2 weeks. If you have changed your last name please make sure that you have informed your bank about it, too. Please also note that the net sum of your marriage support depends on your salary and the taxation. You can always check the taxes that will be deducted from kalkulaator.ee. Just insert the overall gross sum you received this month, add your tax free amount and you will find out how big is the total net sum that you will receive (salary + support).
BEFORE THE BABY IS BORN…
MATERNITY BENEFIT / MATERNITY LEAVE
At the earliest, the maternity leave can start 70 calendar days before the estimated date of delivery. A gynecologist, family physician, or midwife must issue a maternity leave certificate. To receive the maximum amount of maternal benefit for 140 days, the maternal leave must begin at least 30 calendar days before the delivery date. When you start the maternal leave later, the benefit is decreased by the number of days that you delayed the leave by.
How is it calculated?
If you log in to emta.ee (Maksuamet/ Estonian Tax Board) you can see your income from the previous year. Please pay attention to the sum that says „taxed with social tax“. This is the sum that is basis for the calculations of your maternity benefit. The sum is divided by calendar days of the last year and multiplied with the number of days you are supposed to get the benefit, ie 140.
Let’s see how much money will Jana get if her maternity leave starts in November. Her income in 2019 was 17 000 euros altogether, before taxation. When we divide 17 000 with 365 days the result is 46,58 euros per day. When we multiply this number with 140 days the result is 6521,20 euros. Jana must pay income tax for this sum. Please note that Jana can declare some of her maternity benefit in 2020 and some in 2021, so she does not have to pay additional income tax. It applies to all ladies who will start their maternity leave within the last 3 months of the calendar year, i.e. in October, November or December.
What about Rita who’s baby should be born in February 2021? She could start her maternity leave in 2020 or she could wait a bit and start it in January 2021. If Rita starts her maternity leave in 2020 her maternity benefit will be calculated based on her income in 2019. But Rita received a huge bonus in 2020 and got a salary raise of 50 euros per month in April 2020. If she starts her maternity leave in January 2021 all those additional payments and pay rise will affect her maternity benefit in a positive way.
Be aware of when will you have your next payment. Maternity benefit can seem like a huge sum at first but you will not get much money in next 4 – 5 months. So maybe it is not a great idea to buy a new TV set or move your family to Bali for the winter? 😉 Maternity benefit is paid by the Health Insurance Fund (Haigekassa). More information about it is available on the Health Insurance Fund website.
If a child is expected or has already been born to the family, the father is entitled to 30 working days of paternal leave during two months prior to the expected delivery date until the child turns three years old. From 1 July 2020 instead of the previous 10 working days, the father has the opportunity to take 30 calendar days of paternity leave and to receive the parental benefit for that period. The additional benefit for fathers will also be paid to fathers who are not working.
AFTER THE CHILDBIRTH
REGISTERING THE CHILD
The new child must be registered at the population register before the child turns one month old. More detailed information about the child registration is available in the state portal section: Registration of birth and choosing a name.
MAJOREL CHILD BIRTH BENEFIT
Please send a copy of your child’s birth certificate to HR and you will receive within 2 weeks 241 euros to your bank account! We pay every employee entitled the child birth benefit of 250 euros gross. The good thing is that this benefit is not taxed with income tax, so even those who cannot use the tax free amount will receive the same sum.
CHILDBIRTH ALLOWANCE BY THE LOCAL AUTHORITY
Local governments pay childbirth allowances to newborns – either as one payment, or in several instalments. Usually, a prerequisite applies – at least one parent must have officially lived in the same municipality for at least 6 months to a year before the child is born. Please see the child allowance that Tallinn offers here: https://www.tallinn.ee/eng/Teenus-Childbirth-allowance.
NATIONAL CHILDBIRTH ALLOWANCE
Childbirth allowance is a one-time allowance in the amount of 320 euros paid when a child is born. If you are an Estonian citizen you do not have to apply for the allowance. If you and your family have moved to Estonia from abroad or you become entitled to an allowance due to, for example, adoption or guardianship or other, please contact the state through the self service portal or by e-mail at email@example.com
Child allowance is paid for each child, from birth until the child is 16. If the child continues their studies, the payments will also continue after the child turns 16. Family with one or two children eligible for the child allowance – 60 euros per child per month. Family with three or more children eligible for the child allowance – 100 euros per child per month starting from the third child.
Example. A family has three children: a 4-year-old, a 10-year-old, and a 17-year-old who studies at a high school. The family is paid 60 euros of child allowance for the first and second child, and 100 euros for the third child – which totals 220 euros.
PARENTAL BENEFIT/ SALARY
The parental benefit is paid to guarantee your previous income, as it decreases due to raising children. Before the child is 70 days old, only the mother is entitled to the parental benefit. After the child is 70 days old, any of the parents can apply for the parental benefit – meaning that also the father may apply. The parental benefit is paid for a period of 435 days, or until the child is one and a half years old.
The parental benefit is calculated based on the 12 months income that the parent had 9 months before the baby was born. You can calculate your parental benefit here: https://www.kalkulaator.ee/et/vanemahuvitise-kalkulaator (only in Estonian).
During receiving the parental benefit, it is allowed to earn income. If your monthly income is smaller than half of the maximum benefit amount (1774,05 euros in 2020; 1910,77 euros in 2021), then your parental benefit amount will not decrease. Should your income exceed this figure, we shall decrease the parental benefit amount paid out to you.
Similarly to a salary, the parental benefit is taxed with the income tax.
Simultaneously, the family can receive only one parental benefit. Should you or the other parent already receive a parental benefit and the next child is born before the current parental benefit period is over, the family is entitled to choose which of the calculated parental benefits to use. The parental benefit amount does not depend on the number of children.
Together with the family allowances, the state shall pay compensation for the parental benefit and maternity benefit gap, should your older child be under two years and six months of age, and the maternity benefit for one day is smaller than the parental benefit for one day.
ALLOWANCE FOR MULTIPLE BIRTH OF THREE OR MORE CHILDREN
One parent, custodian, or guardian of a family raising triplets or more multiple siblings are entitled to this allowance. The 1000-euro allowance per month is paid to the family until the children reach the age of 18 months. This allowance is paid automatically and you do not have to file a separate application for it.
ALLOWANCE FOR A FAMILY WITH MANY CHILDREN
If your family has at least three children for whom you are paid child allowance, your family will also receive the allowance for a family with many children. The allowance is bigger for families with seven or more children. You do not have to file a separate application for this allowance.
SUPPLEMENTARY CONTRIBUTIONS TO THE MANDATORY FUNDED PENSION
If you live in Estonia, your family has a child younger than 3, and you have chosen the II pension pillar, we shall pay a supplementary 4% of the average monthly Estonian income taxed with the social tax into your mandatory funded pension account.
IF YOU RAISE THE CHILD ALONE
SINGLE PARENT CHILD ALLOWANCE
The single parent child allowance is paid if your child’s birth registration does not contain any data about the child’s father, or if the other parent has officially been declared a fugitive.
Maintenance allowance is meant for children, whose parent or parents do not fulfil their maintenance obligation. Maintenance allowance can be applied for both during the legal proceedings as well as the execution proceedings.
If a parent of the child has died, Estonian state will pay the child a survivor’s pension.
All about family benefits
Legal procedures and applying for benefits
Health Insurance Fund / Haigekassa
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