The minimum wage in Estonia is set to jump €40 a month in 2016, and another €40 in 2017. 

Currently the minimum wage in Estonia is €390 a month and unions have agreed with policy makers to increase the rate to €430 in 2016. This will be followed by another increase to €470 in 2017. The rise represents an increase of more than 20%.

The head of the Employers Confederation, Peep Peterson said that the increase takes the minimum wage close to 40% of the average wage in Estonia, but is still below the relative poverty threshold. He therefore, added that pressure must be kept up to insure that rises continue into the future.

The Employers Confederation initially rejected an offer of a €50 increase in 2016 with a further €20 increase the following year. Whilst that offer would have made those on the minimum wage €10 better off next year, it would have been €10 worse in 2017.

Estonia’s minimum wage has risen significantly in recent years. In 2013, it was €320 per month. The current agreed rate means that in nominal terms, the minimum wage in the country will have risen 47% over a four year period to 2017.