Finance Minister Jürgen Ligi (Reform) said the broad framework for next year's state budget is in place, with the four sectors receiving equal additional funding for wages.

A one-hour warning strike by education workers protesting at pay ran Tuesday from 8–9 a.m. at preschools and 9–10 a.m. at general and vocational schools.

Kallas confirmed to ERR that the four groups can expect a "small" pay rise next year. Teachers' minimum wage will rise from €1,970 to €2,030, a roughly 3 percent increase, while the other three sectors — cultural workers, rescuers and police — will see a 3 percent rise. The total wage fund will increase by 4 percent, bringing the estimated average teacher salary to €2,500.

"The budget situation is so difficult that, in order to be able to raise these salaries at all, even by a little, we have to make cuts somewhere," Kallas said.

She added additional revenue from economic growth will be consumed by increases in pensions. Assuming 2.4 percent growth next year, the most optimistic estimate is €350 million in additional tax revenue.

"Of that €350 million, €200 million will essentially go immediately and automatically toward covering indexed expenditure, meaning pensions and a few other expenses, such as parental benefits," Kallas said. "Very little of the money generated by economic growth will remain available."

According to Kallas, cuts will have to be found in infrastructure and real estate investments. She said the government should decide not to launch any new real estate investments at all. "Finish those that are currently in progress and do not launch any new real estate investments for now. Then look at the infrastructure situation as a whole to see whether any savings can be made there."

The EHL is seeking to raise the minimum teacher salary to €2,312, the projected Estonian average for 2027, up from the current €1,970. Union chair Reemo Voltri said the government has been backing away from its pledge to raise salaries to 120 percent of the national average. The EHL said 69 percent of Estonian teachers have considered leaving the profession in the past year, citing workload and low pay.

The Estonian Education Workers' Union (EHL) said it was not satisfied with the offer. "While just a few weeks ago there were messages that the state did not have a cent for a salary increase for teachers, the three percent that has now been allocated is certainly better than zero," Voltri said. "At the same time, the current offer means that teachers' salaries will fall even lower in 2027 compared to the average Estonian salary, meaning that teachers' economic situation will still worsen. This is a problem."

According to Voltri, the government's reversal on its promises is causing strong indignation among the teaching community. "Teachers feel as if they have been betrayed," he said. "In the coalition agreement signed four years ago, the governing parties, including the Reform Party and Estonia 200, promised to raise teachers' salaries to 120 percent of the average Estonian salary. Now we see that in fact they have moved in the opposite direction."

Overall, over the past four years, teachers' salaries have decreased by almost eight percentage points compared to the national average salary.

In light of Wednesday's offer, the EHL will begin considering further collective actions. In addition to a competitive salary increase, the union also wants to reach an agreement on teachers' workload. "We see that low salaries and an ever-increasing workload are the main reasons why teachers are leaving their jobs and the quality of education is gradually weakening," Voltri said.

Teachers had also been joined by rescue workers in picketing the Riigikogu earlier this month (pictured). The average national wage reported for the second quarter of this year is €2,243 per month gross.

The government will discuss the state budget again at a Cabinet meeting Thursday, and hopes to finalise it Monday before submitting it to the Riigikogu.

Editor's note: This article was updated to include information on the specific pay increases announced and the EHL's response.

--

Follow ERR News on Facebook and Twitter and never miss an update!