Ain Käpp, head of the labor market working group at the Estonian Employers' Confederation (ETK), said that the trade union had put forward an ultimatum – accept an 11.8 percent increase in the minimum wage or we will take the issue to the national conciliator.

"Such a rapid increase in the minimum wage is not realistic from the employers' point of view in the current economic climate, as the economy has not yet emerged from a prolonged stagnation and the economic situation has not developed as predicted. The economy has declined over the last two years, and this year's economic growth will also be lower than predicted a year ago, that is, close to zero," said Käpp.

Käpp added that employers have raised wages and that the minimum wage has also grown faster than both prices and average wages over the last decade. The average minimum wage growth over ten years has been 8.6 percent, while the average wage has risen by 7 percent and the consumer price index by 4.8 percent over the same period.

The employers' proposal was to raise the minimum wage next year by the same amount as the average wage growth forecast by Bank of Estonia (Eesti Pank) –  5.1 percent.

"This would also be higher than the price increase forecast for next year, which means that the purchasing power of those on the minimum wage would improve. The proposal is a compromise between employers, as it will not be possible to raise wages in a number of sectors next year," said Käpp.

Ther national minimum wage is the lowest salary an employer can pay a full-time employee in Estonia.

The amount is agreed upon each year by the social partners, the Estonian Employers' Confederation (ETK) and the Estonian Trade Union Confederation, and confirmed by a government regulation.

Since January 1, 2025, the minimum hourly wage rate has been €5.31 per hour. The minimum monthly wage for full-time work is €886.

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