Estonia's government has announced that the minimum wage will increase by 60 euros, resulting in a new monthly minimum wage of 946 euros starting from April 1. The hourly minimum wage will also be adjusted to 5.67 euros. This decision was communicated by the Minister of Economic Affairs and Infrastructure, Erki Keldo, who emphasized the government's commitment to gradually raise the minimum wage to at least half of the average salary in the country. He noted that this increase is crucial for improving the purchasing power and living conditions of lower-income residents in Estonia.

The agreement to raise the minimum wage was reached through negotiations between the Estonian Trade Union Confederation and the Estonian Employers' Confederation, culminating in a collective agreement signed on February 17 of this year. This collaborative effort highlights the importance of dialogue between employers and workers' representatives in addressing wage levels and economic conditions. The government believes that the minimum wage should continue to outpace inflation and average salary increases to provide better financial stability for employees.

According to recent statistics from the Tax and Customs Board, approximately 15,000 full-time employees were earning the minimum wage in the past year, which was previously set at 886 euros per month. This represents about 3.2% of the overall workforce, making the discussions around minimum wage increases particularly significant for a sizable portion of Estonia's labor market. The government's proactive approach not only aims to support low-income workers but also seeks to stimulate the country's economy by boosting local purchasing power.