Negotiating parties have agreed to raise the minimum basic tax exemption rate to €654 from €500, chairman of the Social Democratic Party (SDE) Lauri Läänemets said on Tuesday.
"This means that people with middle and lower wages will get a higher salary of up to €372 a year. This is one of the Social Democrats most important wishes," Läänemets told ERR.
He confirmed Reform and Isamaa supported the move.
The chairman said SDE's goal is to raise the threshold to €800 but it will try to implement this after the elections in March.
Speaking about the progress of negotiations and the draft coalition agreement, he said approximately half has been agreed so far. "We're updating and reviewing it. There are still some issues up in the air," he said.
Some remaining issues still require serious discussions, such as renewable energy and reimbursing energy prices.
He believes a compromise that suits all parties has been found for transitioning to Estonian-language education.
"We have agreed that this will take place in the case of basic education in 2024–2025 and in the case of general education in 2026–2027," Läänemets said.
The chairman said some parties have more ambitious education goals but these are hard to enact when Estonia does not have enough teachers.
"But making the transition, and in which years - we have agreed on them," Läänemets added.
Editor: Helen Wright