Bill to make calculation of parental benefit more flexible

Photo: SCANPIX

The parliamentary social affairs committee on Thursday discussed a bill that would change the formula of calculation of the parental benefit in a situation where the parent receiving the benefit simultaneously receives remuneration for work, as the present formula can produce a result that reduces the person's total income.

«Working at the time when one receives parental benefit must not be a punishment. A flexible parental benefit motivates the parent to maintain connection with the job market and its calculation becomes more flexible for the worker,» chairman of the Social Affairs Committee Margus Tsahkna said through spokespeople for the Riigikogu.

The bill would make the formula for reducing the parental benefit more consistent and in most cases more favorable for the recipient. The formula would be changed in such manner that the parent's total income, that is, parental benefit and other income, would not be smaller compared with the situation where the parent does not earn additional income.

The bill would abolish the ceiling on remuneration for work upwards of which no parental benefit is paid and for the recipient of parental benefit the right will be preserved to receive a benefit at least in the statutory amount.

The standing committee decided to send the bill to the Riigikogu for the first reading.