Private pay below public

TALLINN — Estonian wages decreased year-on-year for the first time since 1993 in in 2009, according to the country’s central statistics bureau with private sector wages below their public sector counterparts.

The average monthly gross wage was 12,264 krooni (€783) last year, showing a 5 percent decrease compared to 2008. The average hourly gross wages which were 75.11 krooni (€4.8) went down by [private_supervisor]3.1 percent. Salaries rose only in Estonia’s energy utilities, there by 7 percent. The biggest decline, by 13.2 percent, was witnessed in construction sector which suffered the most since the economic downturn. Employers’ total labor costs per employee were 16,697 krooni (€1,067) per month.

Wages more down in private sector

The fact that government wages have declined less than in the private sector is garnering criticism from Estonian business owners.

Enn Veskimägi, chairman of the board at an Estonian furnishing company Standard told business newspaper Äripäev that entrepreneurs have repeatedly talked about equalizing the wages, and also have a larger tax burden on their shoulders due to the country’s anti-crisis plan to keep the government deficit within Maastricht criteria.

“The public sector’s wage cuts were substantially smaller than entrepreneurs wished,” said Veskimägi.

Indeed, the numbers show that an Estonian with a government job has been in much more secure place than his or her private sector counterpart.

Statistics Estonia announced that the average monthly gross wages in the public sector were 12,914 krooni (€825.3), but in the private sector 12,013 krooni (€767.7). The private sector has also taken the bulk of job losses in 2009, with 13.4 percent of the jobs made redundant, while in the private sector only 3.5 percent of total jobs were cut. [/private_supervisor] [private_subscription 1 month]3.1 percent. Salaries rose only in Estonia’s energy utilities, there by 7 percent. The biggest decline, by 13.2 percent, was witnessed in construction sector which suffered the most since the economic downturn. Employers’ total labor costs per employee were 16,697 krooni (€1,067) per month.

Wages more down in private sector

The fact that government wages have declined less than in the private sector is garnering criticism from Estonian business owners.

Enn Veskimägi, chairman of the board at an Estonian furnishing company Standard told business newspaper Äripäev that entrepreneurs have repeatedly talked about equalizing the wages, and also have a larger tax burden on their shoulders due to the country’s anti-crisis plan to keep the government deficit within Maastricht criteria.

“The public sector’s wage cuts were substantially smaller than entrepreneurs wished,” said Veskimägi.

Indeed, the numbers show that an Estonian with a government job has been in much more secure place than his or her private sector counterpart.

Statistics Estonia announced that the average monthly gross wages in the public sector were 12,914 krooni (€825.3), but in the private sector 12,013 krooni (€767.7). The private sector has also taken the bulk of job losses in 2009, with 13.4 percent of the jobs made redundant, while in the private sector only 3.5 percent of total jobs were cut. [/private_subscription 1 month] [private_subscription 4 months]3.1 percent. Salaries rose only in Estonia’s energy utilities, there by 7 percent. The biggest decline, by 13.2 percent, was witnessed in construction sector which suffered the most since the economic downturn. Employers’ total labor costs per employee were 16,697 krooni (€1,067) per month.

Wages more down in private sector

The fact that government wages have declined less than in the private sector is garnering criticism from Estonian business owners.

Enn Veskimägi, chairman of the board at an Estonian furnishing company Standard told business newspaper Äripäev that entrepreneurs have repeatedly talked about equalizing the wages, and also have a larger tax burden on their shoulders due to the country’s anti-crisis plan to keep the government deficit within Maastricht criteria.

“The public sector’s wage cuts were substantially smaller than entrepreneurs wished,” said Veskimägi.

Indeed, the numbers show that an Estonian with a government job has been in much more secure place than his or her private sector counterpart.

Statistics Estonia announced that the average monthly gross wages in the public sector were 12,914 krooni (€825.3), but in the private sector 12,013 krooni (€767.7). The private sector has also taken the bulk of job losses in 2009, with 13.4 percent of the jobs made redundant, while in the private sector only 3.5 percent of total jobs were cut. [/private_subscription 4 months] [private_subscription 1 year]3.1 percent. Salaries rose only in Estonia’s energy utilities, there by 7 percent. The biggest decline, by 13.2 percent, was witnessed in construction sector which suffered the most since the economic downturn. Employers’ total labor costs per employee were 16,697 krooni (€1,067) per month.

Wages more down in private sector

The fact that government wages have declined less than in the private sector is garnering criticism from Estonian business owners.

Enn Veskimägi, chairman of the board at an Estonian furnishing company Standard told business newspaper Äripäev that entrepreneurs have repeatedly talked about equalizing the wages, and also have a larger tax burden on their shoulders due to the country’s anti-crisis plan to keep the government deficit within Maastricht criteria.

“The public sector’s wage cuts were substantially smaller than entrepreneurs wished,” said Veskimägi.

Indeed, the numbers show that an Estonian with a government job has been in much more secure place than his or her private sector counterpart.

Statistics Estonia announced that the average monthly gross wages in the public sector were 12,914 krooni (€825.3), but in the private sector 12,013 krooni (€767.7). The private sector has also taken the bulk of job losses in 2009, with 13.4 percent of the jobs made redundant, while in the private sector only 3.5 percent of total jobs were cut. [/private_subscription 1 year]

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