The subsistence benefit is a form of state assistance for those in difficulty which is paid by the local government. In order to alleviate a person’s situation the local government employs both social services and other forms of social assistance, depending on the situation in question. The benefit is paid if all other measures for the alleviation of poverty and difficulty have proven ineffectual.

The subsistence level is set by the Riigikogu (the national parliament) in the state budget. It is calculated for people living alone or the first member of a family for every budgetary year. The subsistence level of the second and each subsequent member of the family is 80% of the subsistence level of the first member of the family.

The State Budget Act for 2011 sets the subsistence level as 76,70 € per month for a person living alone or the first member of a family and 61,36 € for the second and each subsequent member of the family.

The subsistence level is established on the basis of minimum expenses incurred in the consumption of food, clothing, footwear and other goods and services satisfying primary needs.

The Social Welfare Act establishes the right of local governments not to designate subsistence benefits to people of working age or capable of working who are not studying or working and who have repeatedly and for no good reason refused to accept suitable positions.