The Estonian Trade Union Confederation (EAKL) has concluded a goodwill agreement with the Minister of Economic Affairs and Information Technology and the head of the Estonian Employers' Confederation, setting out a framework for minimum wage growth rate until 2027, when it should reach 50% of the average salary.
The minimum wage level will rise in phases: 42.5% of the average wage in 2024, 45% in 2025, 47.5% in 2026 and 50% in 2027.
EAKL President Jaan-Hendrik Toomel said he was satisfied with the framework agreement, providing for as increase in the minimum wage next year, when future tax changes will have a negative impact on people with lower incomes. "The exact minimum wage figure will be determined during the negotiations in the autumn,” he explained, “but today's agreement will give a clear target for several years to come for the rise in the minimum wage.”