The Central Union of Estonian Employers and the Central Union of Estonian Trade Unions agreed on the minimum wage for 2023. As a result of the agreement, the minimum wage will increase to 725 euros next year, 71 euros higher than this year.
Arto Aas, head of the Central Union of Employers, noted that it is a compromise that should consider both high inflation and a cooling economy. "Rapidly increasing input prices and expenditure on the energy put our entrepreneurs under strong pressure, which unfortunately does not contribute to the competitiveness and confidence of the Estonian business environment," commented Aas. "At the same time, it is clear that workers with lower incomes need more support to cope with rapid inflation, and in our already small labor market, every pair of hands is at a high price."
As a result of the agreement, the minimum salary will increase by 10.9% and is 39.3% of the average wage predicted by the Ministry of Finance in 2023.
Jaan-Hendrik Toomel, head of the Central Union of Trade Unions, says, "Against the background of high inflation and rising energy prices, this is a significant financial win for lower-wage earners and will help cushion other below-average wages a bit." The combination of the new agreements will leave more than 100 euros a month for people with lower incomes.
The delegation agreement reached today still needs to be approved by the governing bodies of the unions.