President's Salary to Exceed 10,000 Euros
The salary of Estonia's president and other high-ranking officials will rise above the 10,000 euro mark due to indexing starting in April.
Starting in April, the salaries of Estonia's higher government officials, including President Alar Karis, will increase above the 10,000 euro mark because of indexing adjustments. This change also affects the salaries of Riigikogu Speaker Lauri Hussar and Supreme Court Chair Villu KΓ΅ve. Meanwhile, Prime Minister Kristen Michalβs salary will remain just below the 10,000 euro threshold.
The indexing of salaries for high-ranking officials is in line with the pension system, with 80% of the salary increase determined by the yearly growth in social tax pension insurance revenues and 20% based on annual consumer price growth. Additionally, the government approved a 5.3% increase in pensions, reflecting the same indexing logic. However, in 2023, the salary growth of some senior officials has been curtailed.
Looking ahead, salaries will increase more slowly until 2028, when these officials will see a restoration of previously withheld salary growth, allowing salaries to catch up more rapidly in the following years. This system aims to align public sector salaries with economic growth while ensuring fiscal responsibility in managing public finances.