Estonia: Unions demand 12% minimum wage rise in 2025

The Estonian Trade Union Confederation (EAKL) and the Confederation of Estonian Employers (ETK) have begun negotiations on the minimum wage for 2025, ERR reports. EAKL demands that the minimum wage be raised by 12%. Arto Aas, managing director of ETK, has little hope of an agreement. Earlier, EAKL and ETK signed a “goodwill agreement” to raise the minimum wage to 50% of the average wage by 2027. However, Aas noted that the agreement was signed in better economic times. He pointed out that wages in Estonia have grown faster than productivity. Currently, Estonia’s minimum wage for full-time work stands at EUR 820, and the hourly minimum wage is EUR 4.86. Around 20,000 people earn the minimum wage, mostly in the service sector.