Background information

Due to energy crisis and war in Ukraine, the prices have significantly increased and the costs of households as well. To relieve the difficulties, the parliament approved a supplementary state budget on 19 May 2022 which allows to increase subsistence benefit, extend eligibility criteria and pay additional allowances for the most vulnerable groups.

Content of measure

The subsistence benefit as the minimum income scheme is provided to a person who lives alone or to a family whose monthly net income is below the subsistence level after the cost of housing (rent, utilities, land tax, and building insurance cost). The subsistence level for the first member of the family has been €150 since 2019, but will increase to €200 as of 1 June 2022. The level of the second and any subsequent adult family member is 80% of the subsistence level and for children 120% of the level. As of 1 July, mortgage cost will be included among the housing costs to take into account when calculating the costs incurred by the household.

As of November 2022, additional one-time support will be paid to families with children to alleviate the price increase. A benefit of €50 is paid for each child in the family. Support is also provided for recipients of old-age pensions and people with no work ability (€50 per person).

The budget for the allowance for children and pensioners is €30 million.

Use of measure

It is expected that a total of nearly 22,000 households will make use of the amended subsistence benefit, which includes around 10,000 Ukrainian war refugees.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Does not apply to businesses	Children (minors) Disabled Migrants or refugees Pensioners People on social benefits

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement as case not in social partner domain	No involvement as case not in social partner domain
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

No involvement.

Views and reactions

No information.

Sources

• 19 May 2022: Lisaeelarvega toetatakse Eesti inimeste toimetulekut ja sõjapõgenike abistamist (The supplementary budget supports the subsistence of the People of Estonia and the assistance of war refugees) (www.sm.ee)