Employers and unions on Thursday signed a nationwide minimum wage agreement for 2023. According to the agreement, the minimum wage will be raised to 725 euros per month and the hourly rate to 4.3 euros.
The government will have to finally approve the size of the “minimum salary” for 2023, but usually it agrees with the proposal of the social partners.
Employers and trade unions have also reiterated that the increase in the minimum wage should not be arbitrarily linked to other payments or benefits, such as the payment for a place in kindergarten or the wages of local government leaders.
The current minimum wage of €654 per month is effective from 2022.
Compared to the current rate, from January 1, the “minimum wage” will increase by 71 euros or 10.9% and will amount to 39.3% of the average salary in Estonia in 2023, projected by the Ministry of Finance.
This means that, taking into account the increase in the tax-free minimum, people with low incomes will receive more than 100 euros more per month.
According to the Tax and Customs Board, about 20,000 people in Estonia receive the minimum wage.
“However, the impact of this salary is wider, for example, it indirectly affects the level of wages throughout Estonia, especially at a lower level, in a sense, it stimulates employers to value the work of employees more,” Arto Aas, head of the Central Union of Employers, told ERR earlier.