The government has agreed to a 10% wage rise for teachers in 2026.
The pay rise is a part of the draft bill for next year’s state budget, agreed by the two coalition parties, Reform and Eesti 200.
Rescue Board (Paasteamet) and Police and Border Guard Board (PPA) personnel will also get a 10% rise for next year, with around EUR 117 million earmarked for that purpose in the budget for next year.
The government has also agreed on abolishing the “tax hump,” referring to income tax bracket creep, a long-held Reform Party aim.
Scrapping a planned hike to income tax of 2% has also been confirmed.
Eesti 200 announced additional steps for restoring the competitiveness of the Estonian economy to arise from the talks. Investment into the economy will be made via tax cuts, the party says.
The state budget will also allocate EUR 210 million next year, to raise average pensions by 5.4%, and will raise subsistence benefits by EUR 4 million.
The 2026 state budget also confirms the promised boosting of defense spend to 5% of GDP. This will total EUR 844.5 million next year.
The state budget bill must pass three Riigikogu readings between now and year-end before it passes into law. Substantive amendments can be made between the first and second amendments. (ERR)