Ministries' year-end bonuses close to a million euros in some cases

Riigikogu Finance Committee Deputy Chair and Center Party MP Andrei Korobeinik sent an inquiry to all ministries, asking whether, how much and for what reasons they had paid bonuses and additional compensation between November and January. The responses revealed that depending on the ministry, these payments amounted to as much as €1 million.
Nearly half of the ministries responded to Korobeinik's inquiry by the deadline. According to Korobeinik, the responses received on time indicate that different sectors of the public sector have interpreted the need for cost-cutting in varying ways.
"The Ministry of Foreign Affairs was particularly arrogant in this regard — they talk about closing consulates to save a few hundred thousand euros, yet they have paid nearly a million euros in performance bonuses, which were received by almost everyone — 87 percent of the ministry's officials," Korobeinik told ERR. "That is quite remarkable."
The average performance bonus in the Foreign Ministry was €1,500.
The Ministry of Defense, along with the Ministry of Justice and Digital Affairs, also collectively paid over a million euros in additional compensation and bonuses within their respective areas of administration.
In their responses to Korobeinik, the ministries justified the additional payments and bonuses by citing factors such as the fulfillment of extra job responsibilities or substituting for missing staff members.
The highest individual performance bonus was paid by the Ministry of Justice and Digital Affairs, where a top specialist in a subordinate institution received €10,500.
"I also question how reasonable these current salary agreements are. If someone agrees on a salary and then receives over €10,000 in bonuses by the end of the year, perhaps this isn't the most transparent budgeting?" Korobeinik asked.
According to Hando Sutter, CEO of the Estonian Employers' Confederation, awarding performance bonuses of up to four months' salary could be considered good practice in the public sector. However, he emphasized that there should be a clear and measurable system to understand which positions receive bonuses and for what reasons.
"In the public sector, it would be beneficial if such agreements and schemes were made public so that it is clear what the additional payments are for. If an extra monthly salary is paid out just before Christmas, it is difficult to call that a performance bonus — it is clearly a reward and I certainly do not support such payments," Sutter told ERR.
Based on the responses received, Korobeinik also highlighted the Ministry of Culture, where the average performance bonus was 60 percent of a monthly salary.
"I strongly suspect that some of those who did not respond on time — such as the Ministry of Climate — are the ones who have not seriously engaged in cost-cutting efforts at all," Korobeinik added. "I expect some rather extravagant responses from them."
Sutter further noted that over the past three years, the public sector has been driving wage growth and additional compensation and bonuses have played a role in this trend.
"It is somewhat paradoxical that Estonia has faced three consecutive years of economic downturn, yet we have continued to see strong wage growth," Sutter said. "These things don't add up."
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Editor: Marcus Turovski