On 19 September 2013, Estonian Employers’ Confederation and the Estonian Trade Union Confederation agreed minimum wage increase by 35 euros both next year and the year after that. This year, minimum wage in Estonia has been 320 euros pursuant to the resolution of the government on 10 January which approved the previous such agreement entered into on 21 December 2012. The Government of the Republic must approve the new rates with its resolution to enter it into force.
Unusually, the agreement is for two years this time, during which the gross wages of people earning minimum wage in Estonia will increase by 22%.
According to the agreement, minimum wage will be 355 euros per month (2.13 euros/h) in 2014 and 390 euros (2.34 euros/h) in 2015. The employers and trade union confirmed that the wish to improve employees’ living standard within possible means alongside compensating for the increase of cost of living was mutual.
Companies should consider this when planning their labor costs. In Estonia, the requirement to pay minimum wage also applies to paying board member fees to a board member working full-time.
Source: Estonian Public Broadcasting
