Work capacity reform – change in the assessment criteria

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On 19th November 2014, the Estonian Parliament adopted a first package of laws that will implement the “work capacity reform” as from 1st January 2016. The reform aims at tackling the growing number of people receiving disability pensions, which has increased to 12% of the working-age population in Estonia, by introducing a qualitative shift from evaluating “incapacity for work” to assessing the person’s actual “ability to work”. Simultaneously, there is a shift from passive payment of work incapacity pensions to more active labour market measures. There will also be a stronger link between benefits and activity criteria.

Author: Andres Võrk, Mare Viies and Cenely Leppik