Estonia’s average salary growth at 8.5% y/y in Q2.

By bne IntelliNews September 2, 2013

Average monthly gross salaries and wages of full-time and part-time employees in enterprises, institutions and organizations amounted to EUR 976 in Q2/13, which made a 8.5% y/y increase, data by Statistics Estonia shows. To compare, average gross monthly salary increased by 10% y/y in 2010, by 5.9% y/y in 2011, and by 5.7% y/y in 2012. Average hourly gross wage increased by 8.1% y/y to EUR 5.71 in Q2.

Real wages increased in Q2 by 4.9% y/y, posting y/y increase for the eighth consecutive quarter. Average labour cost per employee in Q2 was EUR 1,320 and average hourly labour cost was EUR 8.66, increasing by 8.4% and 8.2% y/y, respectively.

In absolute terms the average monthly gross wage was the highest in financial and insurance activities and in information and communication (EUR 1,591 and EUR 1,579, respectively), while the lowest in accommodation and catering (EUR 538).

Until the end of 2012 the growth in wages and salaries was slowing down. The data for Q1/13 showed a slight increase in the growth rate: average monthly gross salary EUR 900 in Q1/13, which made a 6.3% y/y increase.

It was also previously reported with the Q1/13 GDP data that labor productivity per employee decreased in Q1/13 by 1% y/y, while unit labor costs increased by 7% y/y. Salaries’ growth continuing to accelerate in Q2/13 without productivity gains might be alarming.

Previously on numerous occasions the Bank of Estonia was alarmed over disproportional wage growth, urging the businesses to avoid high wage expectations and wage claims in an uncertain economic environment. Also when commenting on the Q2 wage growth data the CB believes that 7%-8% y/y growth is too fast, given that productivity metrics did not change significantly since last year.

The central bank believes that economic slowdown seen in H1/13 did not yet feed through to the labour market, which usually reacts with a one to two quarters lag. 

Related Articles

Poland eyeing second LNG terminal

Gaz-System has selected a contractor to carry out a feasibility study on the construction of a second Polish LNG terminal, the state-owned gas grid operator said on March 27. Poland has recently ... more

Latvia heads off Russian gas mischief with legislation on strategic companies

The Latvian parliament passed amendments to national security and commercial laws on March 23, handing the state the power to block the sale of companies considered strategic. The legislation will ... more

EU asks CEE to comment on Russian gas promises

The European Commission has invited comments from Central & Eastern European states on proposals put forward by Russian gas giant Gazprom to meet competition concerns. Visegrad and the Baltic ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss