The Riigikogu concluded the first reading of one Bill

The Bill on Amendments to § 3 of the Social Tax Act (260 SE), initiated by the Social Affairs Committee, passed the first reading in the Riigikogu. It will give employers the possibility to pay voluntary sickness benefit free of social tax to pregnant employees who fall ill, and thereby it will eliminate unequal treatment of employees.

If an employee falls ill, at first their employer and then the Estonian Health Insurance Fund must ensure replacement income for them. For the 4th until 8th day of sickness, the employer must pay the employee a mandatory sickness benefit which makes up 70 per cent of the average remuneration of the employee. In addition, it is possible for an employer to pay a voluntary benefit tax-free until the end of the period for the payment of the mandatory benefit so that the employee would retain their average remuneration during that time.

However, the current Act does not allow employers to pay voluntary sickness benefit to women released from work due to illness or injury during their pregnancy, and therefore an allowance for the preservation of earnings for a pregnant employee may be lower than that of other employees. The Estonian Health Insurance Fund pays sickness benefit to a pregnant employee to the extent of 70 per cent of their average income in the previous calendar year.

The Bill will give employees an opportunity to also preserve the average pay for pregnant employees during their sickness absence. With a view to ensuring equal treatment, the additional sickness benefit paid until the eighth day of sick leave is exempt from social tax. According to the Bill, the social tax incentive on the benefit will also extend to pregnant sole proprietors.

The Bill was initiated when the Chancellor of Justice proposed that the provisions that do not ensure that, in the event of sickness, pregnant employees have the right to a replacement income which is at least equivalent to that of other employees be brought into conformity with the Constitution.

Three Bills were dropped from the proceedings

The Riigikogu rejected at the first reading the Bill on Amendments to the Value Added Tax Act (33 SE), initiated by Members of the Riigikogu Rene Kokk and Henn Põlluaas. It was intended to increase the VAT on press publications from five per cent to 21 in order to reduce the state budget deficit. According to the Bill, the amendment would have affected both press publications on physical carriers and electronic press publications.

63 members of the Riigikogu supported the motion of the Finance Committee to reject the Bill and 12 voted against it.

The Riigikogu rejected at the first reading the Bill on Amendments to the Value Added Tax Act (34 SE), initiated by Members of the Riigikogu Rene Kokk and Anti Poolamets. It was intended to increase the VAT on press publications from five per cent to 22 in order to reduce the state budget deficit.

54 members of the Riigikogu supported the motion of the Finance Committee to reject the Bill and 11 voted against it.

The Riigikogu rejected at the first reading the Bill on Amendments to the Value Added Tax Act (81 SE), initiated by Members of the Riigikogu Rene Kokk and Evelin Poolamets. It was intended to increase the VAT on press publications from five per cent to 25 in order to reduce the state budget deficit.

59 members of the Riigikogu supported the motion of the Finance Committee to reject the Bill and 9 voted against it.

Verbatim record of the sitting (in Estonian)

The video recording of the sitting can be viewed on the Riigikogu YouTube channel.
(Please note that the recording will be uploaded with a delay.)

Riigikogu Press Service
Eleen Lindmaa
+372 631 6456, +372 5551 4433
eleen.lindmaa@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: The Riigikogu concluded the first reading of one Bill

Source: Parliament of Estonia