Article „New maintenance allowance system providing assistance to single parents“ by attorney-at-law Epp Lumiste
In the last issue of accounting news Raamatupidamisuudised (No. 8-2016), attorney-at-law Epp Lmiste is introducing the amendments to the Family Benefits Act, Code of Enforcement Procedure, Labour Market Services and Benefits Act, and Employment Contracts Act entering into force at the beginning of 2017.
On 1 January 2017 the Family Benefits Act entered into force in Estonia with the purpose of supporting families with children and raising of children. As a significant change in the Family Benefits Act, the author is covering the topics of granting maintenance allowance and recovery of the benefit from debtor.
The Family Benefits Act is influencing many other acts and therefore the article is mainly focusing on the amendments that are related to family benefits, raising of children and fulfilment of maintenance obligation. Additionally the author is providing an overview of the amendments to the Code of Enforcement Procedure, Labour Market Services and Benefits Act, and Employment Contracts Act.
As a conclusion, as from 2017 the financial situation of single parents and their children should improve. Not only due to the increase of minimum salary to 470 Euro per month – which would also influence the amount of monthly allowance payable to child – but also due to the maintenance allowance paid by the state. Both the amendments to the Family Benefits Act and the Code of Enforcement Procedure should be followed by the better discipline in paying allowances and the decrease of children living in poverty.
Full article in Estonian is available to the subscribers of Raamatupidamisuudised. Short introduction of the article can be found here.