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Estonia - Minimum Wages - 2009


LAST UPDATE

23 May 2009

SOURCES


Name of Act

Wages Act,
26 January 1994, entered into force 1 March 1994, Teataja (State Gazette) 1994, 11, 154, as amended to 11 December 2002, entered into force 1 January 2003 (Riigi Teataja 2002, 111, 662).

Name of Act

Collective Agreements Act,
14 April 1993, entered into force 28 April 1993 (Riigi Teataja 1993, 20, 353), as amended up to 19 June 2002, entered into force 1 August 2002 (Riigi Teataja 2002, 61, 375).

Name of Act

Agreement setting the national minimum wage rate for 2008 between the Confederation of Estonian Trade Unions and the Estonian Employers’ Confederation.

Name of Act

Agreement establishing the principles for minimum wage setting from 2002 - 2008, between the Confederation of Estonian Trade Unions and the Estonian Employers’ Confederation, dated 30 August 2001.

LEGAL DEFINITIONS


Minimum wage

The minimum amount of wage per specific unit of time (hour, day, week, month etc.) established by the Government of the Republic, which may be agreed upon for full-time employment.
Wages Act §2 (7)

MINIMUM WAGE FIXING


Procedure


Government decides after tripartite or bipartite body discussions/recommendations

The minimum wage is set by the government following the conclusion of a bipartite agreement between the workers’ and employers’ organisations.
The latest bipartite agreement was signed for 2008. However, since a new agreement could not be reached for 2009, the 2008 minimum wage is still valid for 2008.
Wages Act §2(7)
Agreement establishing the principles for minimum wage setting from 2002 - 2008

Criteria


Needs of workers and their families

The effect that an increase in minimum wage rates could have on low-income earners should be considered when minimum wage rates are adjusted.
Agreement establishing the principles for minimum wage setting from 2002 - 2008 §3

Cost of living

Yes
Agreement establishing the principles for minimum wage setting from 2002 - 2008 §4

Level of wages and incomes in the country

Yes.
Agreement establishing the principles for minimum wage setting from 2002 - 2008 §2

Productivity

Yes
Agreement establishing the principles for minimum wage setting from 2002 - 2008 §3

Inflation rate

Yes.
Agreement establishing the principles for minimum wage setting from 2002 - 2008 §2

Coverage


Scope

The Agreement on the minimum wage rate for 2012 applies to all workers employed under an employment contract in the Republic of Estonia.
Wages Act S.1(1)
Agreement setting the national minimum wage rate for 2008 Second paragraph

Specific minimum wage rates


» Specific minimum wage by occupation

No

» Specific minimum wage by sector

No

» Specific minimum wage by region

No

» Minimum wage levels for specific categories of workers

No.

Level


Minimum wage level(s) in national currency

4350 EEK per month.
Agreement setting the national minimum wage rate for 2008 §1

Last minimum wage update

1 January 2008
Agreement setting the national minimum wage rate for 2008 §1

In-kind allowances

No

Rate of payment


» Hourly

Yes
Agreement setting the national minimum wage rate for 2008 §1

» Monthly

Yes
Agreement setting the national minimum wage rate for 2008 §1

Enforcement mechanisms


Labour inspection

Supervision of the Wages Act is carried out by the Labour Inspectorate.
Wages Act §37 (1)

Fines in national currency for non-respect of legislation

Violation of any of the provisions of the Wages Act 1994, including the provisions concerning minimum wages, results in liability to maximum fine of 10,000 EEK.
Wages Act §37(6)

Results generated on: 24th November 2014 at 10:19:53.
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