Minimum wages to rise in 2000

TALLINN - A new minimum wage was set last week, boosting minimum earnings to 1,400 kroons ($94.21) a month or 8.25 kroons per hour starting Jan. 1, 2000.

This is the first time that the minimum monthly wage has exceeded the minimum subsistence level set by the government, according to the Ministry of Social Affairs.

Currently, the monthly minimum wage is 1,250 kroons a month, or 7.35 kroons per hour. It was last raised in 1998.

The government, the Employers and Industry Central Union and trade unions reached the agreement during a round of talks that also included discussions to separate the minimum wages from other parts of the salary scale - for example, social tax - and to raise the minimum tax-free income.

Tarmo Kriis, lawyer for the Employers and Industry Central Union said the union was pleased with the agreement, especially since it will not take effect until the New Year.

"Trade unions wanted to raise the minimum wage in July but we got it postponed until the beginning of next year, that is quite good," he said.

Raivo Paavo, Trade Union Confederation chairman, commented to Postimees that the agreement was a "good compromise."

The trade unions want the tax-free income minimum raised to 850 kroons from its current 500 kroons. However, the government and employers' unions will settle at 800 kroons, which according to the minister of social affairs is the amount factored into the 2000 state budget.

The Trade Unions Central League accepted the 800 kroons figure on the condition that the level will be raised to 1000 kroons the following year. The TALO union consisting of employees from state-financed institutions will meet again this week to discuss an agreement regarding the postponement of the 1,000 kroon tax exemeption, Eesti Paevaleht reported.