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, but did not specify the exact percentage ahead of negotiations with the Education Personnel Union (EHL) continuing Wednesday afternoon. She said the additional funding for the wage bill would be the same for all four sectors.

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

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.

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.

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