TALLINN – The Estonian Trade Union Confederation (EAKL) wishes the minimum pay in Estonia to be raised by 38 percent from the present 470 euros to 650 euros per month in three years.
Judging by the ratio of labor productivity to minimum wage, a minimum wage of 470 euros is not high at all, Peep Peterson, chairman of EAKL, told BNS.
He said that on the basis of the minimum pay in Germany, which is 1,498 euros a month, and productivity in that country, the reasonable level of minimum pay in Estonia would be 650 euros a month.
Based on the above, unions have made a proposal to the Employers Confederation to raise the minimum pay in Estonia to 650 euros a month in three years, Peterson said. "The eventual level will be established in negotiations," he added.
Since 2001, the minimum pay has been agreed among the parties to the labor market. It is a tradition that the new level of minimum pay is then endorsed by the government.
In recent years EAKL and the Employers Confederation have agreed the size of the minimum pay for two years. The currently valid minimum pay is 2.78 euros per hour and 470 euros per month for people working 40 hours a week.