Unions, employers strike deal, minimum wage to increase to €584

The minimum wage will increase to 40 percent of the national average wage in 2021. Source: Siim Lõvi/ERR

Representatives of the Estonian Trade Union Confederation (EAKL) and the Estonian Employers' Confederation (ETTK) accepted the public conciliator's proposal on Tuesday according to which the minimum monthly wage in Estonia will increase to €584 and the hourly minimum wage to €3.48 next year.

In 2021, the minimum wage will increase to 40 percent of the national average wage, the absolute value of which will be fixed by employers and employee unions next summer on the basis of the Bank of Estonia's summer economic growth forecast, which is to be published next June, the Office of the Public Conciliator said.

Parties to the agreement also agreed to launch a joint nationwide survey regarding the effects of minimum wage on Estonia's socio-econoic development.

The nationwide minimum wage agreement for 2020-2021 will be signed on Nov. 25 at the EAKL.

The current minimum wage in Estonia is €540 per month and €3.21 per hour.

The new minimum wage has been agreed upon by EKKT, representing Estonian employers, and the EAKL, representing Estonian employees.

Over the past ten years, the minimum wage has nearly doubled — from €278 in 2010.


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Editor: Aili Vahtla

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