Estonian Leave Policies 2014 Tallinn seminar Katre Pall

Estonian Leave Policies 2014 Tallinn seminar Katre Pall

Historic overview • Right to maternity leave 1913 • Fully paid 10 week leave for civil servants 1920

Soviet Estonia – full female employment • 1946: 11 weeks of paid maternity leave • 1959: + 6 months of unpaid leave • 1982: 1 year leave compensated at minimum wage level • 1989: paid leave 18 months, unpaid leave up to 3 years Entitlements for women only

Second Estonian Republic since 1991 • Maternity leave + 2 weeks • Childcare leave 3 years paid throughout • 2 weeks unpaid leave for parents of children under 14 • Childcare leave available for fathers • 2 week paternity leave flat rate payment Decrease of birth rates from 2. 2 to 1. 3 (19902002)

New paradigm: Swedish model • 2004 fully paid parental benefit for 225 days • Maternity + parental benefit = 1 year of fully paid leave • Right to 3 year childcare leave maintained • 2006: + 90 days of full payment • 2008: + 120 days of full payment

Current leave scheme • 140 days of maternity leave 100% + 435 days of parental benefit 100% = 575 days / 19 months fully paid leave • Childcare leave until the child reaches 3 years; flat rate benefit • Speed premium if children born within 2 and half years

Entitlements • Maternity leave – employment contract; self employment • Parental leave – employment contract • Parental benefit - everyone is entiteled • Calculation based on average earnings of a previous calendar year; • Base rate for those who have not worked

Father and Son • Paternity leave 10 working days • Benefit depends on economic situation • Restrictions to parental benefit were abolished in 2007

Flexibility • Parents can switch benefit recipient every month • Working and receiving benefit on reduced amount is possible • Working for another employer during leave allowed • Parents cannot take leave simultaneously (part-time work is rare, especially for men)

Impacts • Men’s share among benefit receivers is 6% • Around 8 % of benefit recipients have income from work • Speed premium effect – more children are born within 1. 5 – 2. 5 years • Children under 3 years are least affected by poverty

Impact analyses Policy impacts are monitored regularly (2006; 2009; third study being planned for 2015) • Share of parents employed before birth of a child has grown • Scheme has impact on employed women giving birth to third, second also first child • Share and number of women with higher education, higher income and in employment giving birth has grown

Current policy debates • Child poverty • Childcare availability for children under 3 yrs. • How to make working during leave more appealing • Not much interest by politicians in father’s quota • No debates around 3 year childcare leave • Employer’s role – no issue

Thank You For more information: Katre Pall katre. pall@sm. ee Marre Karu marre. karu@praxis. ee