Representatives of employers and trade unions agreed to freeze the minimum salary on the current level of €584 for next year on Wednesday.
Executive manager of the Estonian Employers Confederation Arto Aas said that freezing the minimum wage makes sense in a situation where neither price nor salary advance is forecast for next year.
"If the previous agreement tied minimum wage to the Bank of Estonia forecast that would theoretically allow the minimum salary to be lowered, we find that it is important to offer stability in these difficult times. We believe this agreement will neither intensify social problems nor make the situation harder on employers," Aas said.
"The main task of unions in a crisis situation is to save jobs and make sure no one's working conditions are made worse without good reason. The reality today is that it will not be possible to hike the minimum wage next year, while we also do not want to see it fall," said Peep Peterson, head of the Estonian Trade Unions Confederation.
The agreement will need to be approved by the Estonian Employers Confederation's council on September 16 and the trade unions' council on September 15.
Employers and unions signed a minimum salary agreement for 2020 and 2021 in November of 2019 that saw minimum wage hiked to 40 percent of average salary.
Editor: Marcus Turovski