Analytics, Estonia, Financial Services, Wages

Marje Josing.

Analysts have noted that wages in Estonia are too high – the total volume of the economy has fallen to the level of the year 2005 but wages have not even reached the level of 2007.

Josing commented that the decline in wages is still in the early phases and therefore it is too early to make any conclusions as yet.

“Many wages are linked to performance pay and pay per work items and in this sector the decline in wages has been noticeable as production volumes have fallen,” she said. Wages in the private sector have in some occasions even fallen to the level of the year 2002, added Josing.

She explained that the high average pay level has remained due to the rigid pay system in the public sector where there is little willingness in making concessions.

“Secondly, we also need to take into account the top-level specialists here who have to be paid high wages as otherwise they would simply leave Estonia and that would be a bigger loss,” said Josing.