Estonia, Legislation, Post Office, Transport

The cost of sending an ordinary letter in Estonia rises from 45 cents to 55 cents.

Prices rise for both for domestic and international letters and packages weighing up to 20 kg. If the decree is approved, the price increases take effect on September 1.

AS Eesti Post Postal Services Division Manager Kaido Padar said that postal stamp price was last increased in November 2011 and the company is not able to provide the service at that price any more.

"Over the years, customers' needs have changed and opportunities for communication have expanded, which has led to a decline in the volumes of the letter service, but the requirements on providing the universal postal service have remained the same," said Padar. Letter volumes have declined steadily in recent years, 10% each year, and in six years, the volume has fallen from 60 million letters a year to 30 million letters.

A large part of the planned price increase is due to the wage increase of the nearly 2,000 first level workers of the company over the past two years. Next year, the national minimum wage rate increases, which means an additional need of the company to increase wages. Also, international transportation costs have increased by 5-10% a year and fees paid to other postal companies increase 3-5% per year, Padar said.

The price increase will not affect the prices of the parcel terminals.