Estonian Ministry of Social Affairs seeking tax incentive also for dental treatment

TALLINN - The Estonian Ministry of Social Affairs has made a proposal to the Ministry of Finance to expand tax incentives for employers with the possibility of contributing to employees' oral health and, more widely than before, to mental health.

In the future, dental care and psychologist-counselor services could be exempted from taxation of fringe benefits.

Health Minister Riina Sikkut praised the Ministry of Finance's desire to create a tax environment that values ​​health more and at the same time emphasized the importance of preventive activities.

"Preventing health problems is the best way to ensure a longer and healthier life for the people of Estonia and to keep health insurance costs under control," Sikkut said.

Good oral health plays an important role in the prevention of cardiovascular diseases, while the contribution of employers would help make dental care, which currently has a high co-payment, more accessible to people.

Currently, employers can finance the services of rehabilitation care specialists, physiotherapists, occupational therapists, speech therapists and clinical psychologists tax-free. The proposal of the Ministry of Social Affairs envisages the expansion of this list by adding dental treatment and psychologist-counselor services to it.

Early diagnosis of health disorders is possible through occupational health, for which the necessary tax incentives already apply.

In 2023, about 5 percent of all employers used the opportunity of reimbursement of the costs of employee health promotion. Only a tenth of them used the entire 400 euros. The average amount of compensation per employee was 215 euros per year in 2023.