The union confederation says that the pay hike may be called off to bridge the gap in the state budget that would emerge as a result of the changes made to the coalition's tax amendment package.

"Calling off the pay hike can not be accepted," ROTAL chairman Kalle Liivamägi said in a press release. "Why are they planning to take away this scant amount that has been set aside to raise the pay of people working in jobs of national importance? It' very difficult to find new workers for many jobs because, first of all, the work conditions are very difficult and, second, the pay is not motivating."

According to the confederation chairman, the pay of social workers, carers, staff a substitute homes and workers in other similar jobs is already well below the national average pay.

Liivamägi said that the decision to forgo the deposit income tax has caused a strained situation and he hopes that the government will not decide in the spring to cancel agreed-upon pay increases for teachers and cultural, interior security and social workers.

The Center Party, Social Democratic Party and Pro Patria and Res Publica Union (IRL) last Friday reached an agreement that there would be no deposit tax in its previously planned form and that amendments would be made regarding the joint tax returns of married couples.

It ha been estimated that the coalition's change of mind will leave a €200 million gap in the state budget over a period of four years.

It has been estimated that the coalition's change of mind will leave a gap of 200 million euro in the state budget over a period of four years.