Estonian unions seek to raise minimum wage above €1,000 — ERR News

In Estonia, the Confederation of Estonian Trade Unions and the Employers’ Confederation have begun negotiations on the minimum wage for next year. Trade unions propose raising it by more than 4% to over €1,000 per month, ERR News reports.

Trade unions’ proposal

Estonia’s minimum wage currently stands at €946 per month, or 43% of the average wage. Kaya Vask, chair of the Confederation of Estonian Trade Unions, said the workers’ side began negotiations from the level stipulated by the good-will agreement concluded in 2023. Under this approach, the minimum wage next year should reach 47.5% of the average wage.

Vask also recalled that the agreement signed three years ago provides for gradually bringing the minimum wage to 50% of the average wage. In her view, an increase is needed so that people can live on their earnings amid rising prices.

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Employers’ position

The Employers’ Confederation will present a counterproposal in the next rounds of negotiations. Its CEO, Hando Sutter, considers the increase proposed by the trade unions too substantial. According to him, the pace of wage growth must be affordable for businesses, especially for companies outside Tallinn and Tartu; otherwise, jobs may disappear in some locations.

Sutter noted that despite moderate economic growth, significant uncertainty persists in the country. In his view, energy prices in winter will fuel inflation and put pressure on economic growth, while the cost of production inputs is also rising.

Who is affected by the minimum wage

At the beginning of the 21st century, Estonia’s minimum wage was equal to 30% of the average wage, while several years ago this figure stood at 41%. Around 20,000 people in the country receive the minimum wage. Its amount also affects minimum parental benefits, unemployment benefits and, in some cases, kindergarten fees.