Important Update for Employers: Increase in the Minimum Wage in Estonia in 2024 - AMS Group

Important Update for Employers: Increase in the Minimum Wage in Estonia in 2024

From January 1, 2024, a significant change will occur in the economic life of Estonia: the minimum wage will be increased to 820 euros per month. This increase presents new requirements for the working conditions and wages of your employees.

What do you need to know and do?

  1. Revision of Employment Contracts: If your employees are working for the minimum wage and their employment contracts specify the old amount, these contracts need to be updated. The new wage amount must meet or exceed the established minimum of 820 euros.

  2. Payment of the New Salary Amount: By February 2024, you are obliged to pay your employees their salary at the new rate for January. This means that you will need to recalculate the net salary for each employee with the minimum wage.

  3. Support and Consultations: We understand that these changes may cause certain difficulties in recalculating and paying salaries. Our team is ready to provide the necessary support and assistance in this process. If you have any questions or difficulties with calculating the new net salary amount, please contact our support service.

Conclusion

We strongly recommend all companies to timely update their employment contracts and ensure that employees' salaries comply with the new requirements. We are ready to assist you in this process, ensuring compliance with legislation and supporting the well-being of your employees.