The Estonian government will impose a lower ceiling on parental benefits and a cap on sickness benefits as of 2026, ERR reports. The government will reduce the maximum rate for parental benefits from the current three times the average wage to twice the average wage. The cut will affect around 3,500 people annually, or about 12% of parental benefit recipients. The benefit for sick leave will also be tied to the average wage over two prior years. In addition, the government will stop paying single pensioner allowance for those living in nursing homes and social tax for spouses or partners who stay at home to care for children. The government said that the aim of the changes was to ensure that welfare benefits do not become unaffordable for the state.
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