Teachers, police officers and cultural workers will get at least a 3 percent pay rise next year according to the newly agreed budget strategy. Ministries' operating costs will be cut to fund the increase.
The new budget strategy will work towards balancing the budget and cuts will be made in every area of government. Each sector will propose where savings can be made and the budget strategy will be approved next Thursday.
Minister of Finance Keit Pentus-Rosimannus (Reform) said the state is acting in solidarity with the private sector which has had to tighten its belt during the crisis.
"Therefore, we decided that all ministers would reduce operating costs in their areas of government," said Pentus-Rosimannus.
"However, the savings in current expenses will make it possible to introduce a salary increase of at least 3 percent next year for teachers, cultural workers and the field of internal security, among others, without increasing the deficit," she added.
The budget strategy was agreed on Wednesday.
Newspaper Postimees reported on Thursday cuts would amount to 5.2 percent for each department in 2022 and 2023. Pentus-Rosimannus did not comment on the figures when asked.
Editor: Helen Wright