The Riigikogu on Wednesday passed a law 55-28 which will peg the salaries of higher state officials to the increase in the consumer price index (CPI) and social tax receipts.
The law organizes the wage system of higher state servants and prosecutors, the Riigikogu said.
The salary of higher state officials will depend on the CPI and the increase in the payment of the pension insurance share of the social tax.
By April 1 of each calendar year, the highest salary rate will be indexed with an index, the value of which depends 20 percent on the growth of the CPI and 80 percent on the annual growth of the payment of the pension insurance portion of the social tax.
The Prosecutor General, Chancellor of Justice, Secretary of State and Auditor General are to be paid 20 percent of their salary per month for representation expenses.
Although the law is to take effect beginning Jan. 1, and the first indexation take place from April 1, the change in the salaries of MPs, the President of Estonia and the ministers would enter into effect with the next composition of the Riigikogu, which will be elected in 2019.
The law is to take effect on Jan. 1, 2018, the Riigikogu said.
Editor: Aili Vahtla