Estonia, Financial Services, Legislation, Markets and Companies, Wages

Estonian Employers' Confederation and the Confederation of Estonian Trade Unions yesterday signed an agreement on minimum wage rates for the years 2016 and 2017.

The agreement sets from 1 January next year the hourly minimum wage rate at 2.54 euros per hour and the minimum monthly wage rate for full-time employment at 430 euros. In 2017, the hourly wage minimum rate is 2.78 per hour and monthly 470 euros per month.

Henn Pärn says that it is not correct to assess the agreement only from an economic perspective, but also the society's expectations have to be followed.

"The agreement between employers and trade unions is approved by the government, after all. So it is a law or a social standard which all should be able to fulfil," explained Pärn the importance of the minimum wage agreement.

According to his calculation, the Estonian employers now have to be able to create 70 to 80 million euros in added value. "It is a measure of solidarity in society and via that, around 40 million euros comes to consumption," said Pärn, who noted that the state's tax revenues will increase also.

The minimum wage is currently 390 euros per month.