In Estonia, beginning April 1st, the average old-age pension will see an increase of 5.3%, rising from the current 817 euros to 860 euros. This adjustment reflects the government's annual recalculation of pensions, which takes into account the economic conditions, such as inflation rates observed in the preceding year. The data from the Statistics Office indicates a price increase of 4.8% in 2025, which means that the average pension is rising slightly faster than inflation, ensuring that pensioners maintain their purchasing power.

In addition, the state pension will increase to 414 euros per month, representing a significant support for those reliant on this income. The tax-exempt threshold for pensioners will remain at 776 euros per month or 9,312 euros annually, which is automatically applied by the Social Insurance Board when processing pension payments. Those earning less than this threshold while still working have the option to request their employers to consider the unused portion of their tax-exempt income towards their salaries or other earnings, which could further enhance their financial positions.

Moreover, the pension index set for 2025 will also serve to adjust the day rates for work ability support from the unemployment fund, in addition to indexing compensation for workplace accidents and occupational diseases. This comprehensive approach to pension reforms and adjustments highlights the government's commitment to improving the financial well-being of its elderly population and ensuring they are adequately supported amidst rising living costs.