The legislation of the European Parliament obliges Estonian employers to pay employees a minimum wage that enables them to live decently from 2024, trade unions note.
The measure of salary adequacy is the purchasing power of the salary, the national salary level and other indicators. In addition, the state, employers and trade unions must start a social dialogue to promote cross-sector collective bargaining.
Jaan-Hendrik Toomel, the chairman of the Central Union of Trade Unions, explained that the prices of food and energy and the cost of living have increased exponentially, which is why the trade unions must strive for more collective negotiations and, through them, higher wage increases.
"The salary must ensure a decent life. This means that the minimum wage must also give a person the opportunity to feel like a full-fledged member of society - to have fun, go to the theater and the cinema," said Toomel, adding that in member states with a high minimum wage, the lower limits of the wage are often agreed upon during collective bargaining.
Coverage by cross-sector collective bargaining must be increased to at least 80 percent so that the salary of most employees is covered by branch-level extended collective agreements. In order to reach the goal, the state, employers and trade unions must start a social dialogue, during which a national action plan is prepared based on the agreements reached.
The new rules apply to all employees in the European Union. The directive will enter into force by November 15, 2024 at the latest.
In July 2022 the minimum wages in the EU Member States ranged from € 363 per month in Bulgaria to € 2313 per month in Luxembourg. Minimum salary in Estonia is 654€ this year and will be 725€ from January 1st 2023.