Tallinn City Government decided on Wednesday to sack 10 percent of the municipality's staff and increase the salaries of the rest by 8 percent.
Deputy Mayor Taavi Aas said a total of 158 people will leave the city's payroll, including from Tallinn government's office, district governments and other city departments.
He said the city decided to look over its personnel situation now, as the last such analysis took place in 2000. The total salary fund will increase by 8 percent, although department heads will have the final say how that is divided.
Aas said last December, when first floating the idea, that city officials' salaries have been frozen since 2009 and need to be increased to keep up with the general level of salaries on the market.
Other public agencies, most notably the police force, have recently also announced similar measures.