
From tomorrow the Department of Social Security will begin paying one-time compensations for the avtonalog. Who will benefit? Why in January many pensioners didn’t account for money? What will change after the indexation, when more pensions exceed
the tax-free plan of 776 euros?
From tomorrow day the Department of Social Security will begin paying one-time compensations for avtonalog. Who will benefit? Why in January many pensioners didn’t have money? What will change after the
indexation, when more pensions exceed the tax-free plan in 776 euros?
When questions Rus.Postimees answered in direct air expert on pensions and family benefits of the Department of Social Insurance Arthur Panov.
Fragment of the conversation:
– Which categories of population are payments for the autonal tax?
– – According to the Government’s decree, some groups of the population are eligible for compensation. The payment will be one-time and is not required to completely cover the authorization.
The first compensations will begin to the accounts of recipients as early as tomorrow (from 23 January 2025 year – prim. redacted). Payments will be made by the end of March.
This measure is designed to reduce the impact of the avtonalog on the most vulnerable groups in the population. The payment is for individuals with disabilities.
Parents of children with severe or deep developmental disabilities will receive compensation, and also people of working age with severe or deep degree of health impairment.
It is worth considering that compensation does notThis is only for children and people of working age.
For children with severe disabilities, the amount is 95 euros, while those with profound disabilities are 142 euros. Compensation for people of working age with severe disability will be 60 euros, with deep – 250 euros.
Note, that the payment of this compensation is never related to the ownership of a vehicle. The absence of the latter is not an obstacle to receiving compensation.
– – With this no other, except individuals with severe and deep degree of disability, are qualified to apply for avtonal compensation?
– These benefits are not related to limited employment, as designated by the Unemployment Insurance Fund. Beneficiaries of the Autonal Tax Compensation are persons with disabilities who are accounted for in the Department of Social Insurance.
– Why was the early year pensions reduced? Many pensioners didn’t have money some some two euros, and some some twenty…
– – This is due to the increase in the income tax, which from 1 January 1 2025 is 22% instead of the previous 20%. The money was not received by those people whose pensions exceed the non taxable taxable minimum of 776 euros. From the difference the income tax is withheld.
For example, with a pension of 800 euros you need to pay income tax with 24 euros. If last year the year was 4 euros 80 cents per month, then this year – now 5 euros and 28 cents.
– What will change after the indexation? From Spring more pensioners will have to pay taxes on part of their part of theirpensions?
– From 1 April after the annual indexation, according to predictions, pensions are expected to rise by 5.3%. This means that pensioners who now receive more than 735 euros, but less than 776 euros, will begin paying income tax in the spring, since their pensions will exceed the tax-free threshold after indexation.
As of January 1 2025 of the year, pensions above 776 euros were received by 155 155 000 people, or 47% of pensioners. After indexation these people will be more: approximately 52%, or slightly more than half of the total number of pensioners (clarifiedafter the air – prim.ed).
Pensions of 500-600 euros after indexation will not reach the target of 776 euros, so their recipients will not have to pay taxes. The situation is different, however, if the pensioner continues to work. Everything that was received and earned above 776 euros, is taxed.
– – How much will the average addition to the pension if the person is no longer working?
– – If we take, for example, a pension of 800 euros, the addition is 42 euros. From the difference above 776 euros will be taxed 22%. In this case – from 66 euros (tax will be 14 euros 52 cents – prim. red.). Hence, to the pension of 800 euros net will be added about 30 euros.
– That is, the actual increase in the pension will be lower, than that is provided by the indexation. Could you please clarify how many pensioners in Estonia continue to work after retiring on pension?
– – According to Eurostat data, Estonia leads the EU in the EU in the number of working pensioners.continue to work for at least six months after they retire. If taking all retirees, about 50 000 of them, or 17% of the total number continue to work.
– Who of single pensioners in 2025 will receive a one-time benefit of 200 euros? Are there any additional restrictions?
– There have been small changes. Conditions for receiving this benefit are few: the retired person must be registered in his own housing one and not be in permanent care outside their place of residence (e.g., not living in a caretaker’s home). At the same time, a trustee may live in the retired person’s apartment, and the retired person may take someone into his or her care.
The single pensioner’s allowance, which meets the above criteria, can only be received by a person whose pension does not exceed 947 euros (after deducting all taxes).
If looking at the statistics, in 2022 in about 90 000 pensioners were receiving this benefit, and in 2023 there are 60 000 receivers. At once 30 000 pensioners were left without the benefit, and it was related to the largest indexation conducted in that year. Many pensioners simply exceeded the income limit established for benefit recipients.
In 2024 year 90 90 000 people received compensation again, that is the number of recipients increased to the level of 2022 year.
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Studio StudioPostimees: who will be compensated avtonalog? What is happening with pensions? Photo: Konstantin Konstantin Sednev/Postimees Grupp
- Which group of
population are payments for the avtonalog?
- Is this exclusively about people with disabilities?
- Why did at the beginning
of the year many pensioners receive an amount less than usual?
- What will the indexation of pensions bring?
- Which benefits are subject to income tax?
.