Survey: Quarter of employers have reduced basic salaries in recent months

One in four employers reduced basic salaries this spring.
One in four employers reduced basic salaries this spring. Source: Siim Lõvi/ERR

Between February and April, a quarter of employees have reduced basic salaries, it appears from the results of a flash survey conducted by the Salary Information Agency and Estonian online job portal last month.

Altogether 61 percent of employers had not reduced basic salaries during this period, while 14 percent of employers had raised them, the Salary Information Agency said.

Of the few that have increased employees' basic salaries, a third have done so for all employees, while the rest have raised basic salaries in certain employee groups, more often for specialists and skilled workers.

Survey respondents from the fields of banking and insurance, government agencies, healthcare and social welfare, and retail trade had increased their basic salaries more. The increase more often than not in the range of 5-10 percent.

In organizations where basic salaries had been lowered in recent months, this was generally the case for all employees, in other cases for some groups of employees, and slightly more often for managers.

Of the accommodation, catering and tourism companies that participated in the survey, 62 percent had lowered the basic salaries of their employees. There were also more basic salary reductions in media and journalism, administrative and support service activities, and culture, sports, entertainment and leisure. The decline in basic salaries was more often than not in the range of 21-30 percent, but in several companies it was also more extensive.

During the period from April to June, 5 percent of employers plan to increase employees' basic salaries, while 16 percent plan to lower salaries. Altogether 53 percent of respondents do not plan to alter basic salaries, and 27 percent are unable to say whether they will alter basic salaries in the near future.

In most organizations where a decrease in basic salaries is planned, this will affect all employees. The projected decline is mostly in the range of 21-30 percent.

Altogether 698 Estonian employers participated in the flash survey.


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Editor: Aili Vahtla

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