Government confirms 10-percent pay rise for teachers in 2026
The government has agreed to a 10-percent wage rise for teachers in 2026.
The pay rise is a part of the draft bill for next year's state budget, agreed by the two coalition parties, Reform and Eesti 200.
Rescue Board (Päästeamet) and Police and Border Guard Board (PPA) personnel will also get a 10 percent rise for next year, with around €117 million earmarked for that purpose in the budget for next year.
The government has also agreed on abolishing the "tax hump," referring to income tax bracket creep, a long-held Reform Party aim.
Scrapping a planned hike to income tax of two percentage points has also been confirmed.
Eesti 200 announced additional steps for restoring the competitiveness of the Estonian economy to arise from the talks. Investment into the economy will be made via tax cuts, the party said.
The state budget will also allocate €210 million next year, to raise average pensions by 5.4 percent, and will raise subsistence benefits by €4 million.
The 2026 state budget also confirms the promised boosting of defense spend to 5 percent of GDP. This will total €844.5 million next year.
The state budget bill must pass three Riigikogu readings between now and year-end before it passes into law. Substantive amendments can be made between the first and second amendments.
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Editor: Marko Tooming, Andrew Whyte
