October saw the start of negotiations on the national minimum wage in Estonia for 2026,
with the next round on 31 October.

Kaia Vask: minimum wage increase is affordable for employers and will not kill business

If anyone doubts whether a national minimum wage is necessary, a look at the pay scales of workers in Narva is enough to change their minds. In Narva, the minimum wage is a daily reality for workers. In July, Roman Vikulov wrote in an article published in the newspaper Gorod that 27 per cent of the working-age population in Narva receives the minimum wage or less.

Now, if someone still argues that the minimum wage should be abolished or made regional, let's ask ourselves honestly: in Estonia (from the middle of which it takes about two hours to reach every corner of the country), is a person living in Narva worth less than a person living in Tallinn?

As the leader of the Confederation of Trade Unions, I believe that the minimum wage is a guarantee, not a promise. It is tempting to talk about the needs of businesses or the desire of workers to be flexible in terms of both working hours and pay. Market regulation without a national minimum wage means that the worker will compete as a cost item with, for example, rent, electricity or raw materials. However, since without these it is impossible to produce anything at all, the worker still loses out.

Workers in small towns and peripheral regions, where job opportunities are scarce and competition between employers almost non-existent, are particularly vulnerable. The national minimum wage is the last line of defence against exploitation by employers.

Estonia has one of the lowest minimum wages in the European Union, this year only €886 per month (gross). At the same time, food, housing and transport cost as much or more than in Western Europe. It is not the minimum wage that is too high, but the overall wage level that is shamefully low in relation to the cost of living.

A modest and planned increase in the minimum wage, as currently set out in the 2023 goodwill agreement between employers and trade unions, is affordable for businesses. As a trade union leader, I therefore argue that the national minimum wage must remain and rise in line with the average wage in Estonia.