Teachers to get minimum wage increase in 2009
Published: 23 March 2009
On 18 December 2008, the wage agreement signed between the Estonian Ministry of Education and Research (Eesti Haridus- ja Teadusministeerium, HTM [1]) and the Estonian Education Personnel Union (Eesti Haridustöötajate Liit, EHL [2]) increased the minimum wage level of teachers by 8% in all qualification levels starting from 2009. Different minimum wage levels are set for four categories of teachers: EEK 10,277 (about €657 as at 4 February 2009) for junior teachers, EEK 10,883 (€696) for regular teachers, EEK 12,438 (€795) for senior teachers and EEK 15,020 (€960) for ‘teacher methodologists’. For class teachers, the minimum wage will increase by 10%. In comparison, the national minimum wage in 2009 is EEK 4,350 (€278) and the average wage in the third quarter of 2008 was EEK 12,512 (€800). Teachers are divided into different categories as follows: 70% (10,500 persons) are teachers, 15% senior teachers, 6% junior teachers and only 2.6% are teacher methodologists. Over 500 teachers have no qualification level assigned to them.[1] http://www.hm.ee/[2] http://www.ehl.org.ee/english.html
In December 2008, the Estonian Ministry of Education and Research and the Estonian Education Personnel Union signed a wage agreement for teachers, increasing teachers’ minimum wage by 8% in all qualification levels in 2009. The government plans to raise teachers’ wages to the level of the national average by 2011, although it still remains much lower for most teachers. However, the steady increase in wages to achieve this goal is questionable given the current economic downturn.
Minimum wage agreement
On 18 December 2008, the wage agreement signed between the Estonian Ministry of Education and Research (Eesti Haridus- ja Teadusministeerium, HTM) and the Estonian Education Personnel Union (Eesti Haridustöötajate Liit, EHL) increased the minimum wage level of teachers by 8% in all qualification levels starting from 2009. Different minimum wage levels are set for four categories of teachers: EEK 10,277 (about €657 as at 4 February 2009) for junior teachers, EEK 10,883 (€696) for regular teachers, EEK 12,438 (€795) for senior teachers and EEK 15,020 (€960) for ‘teacher methodologists’. For class teachers, the minimum wage will increase by 10%. In comparison, the national minimum wage in 2009 is EEK 4,350 (€278) and the average wage in the third quarter of 2008 was EEK 12,512 (€800). Teachers are divided into different categories as follows: 70% (10,500 persons) are teachers, 15% senior teachers, 6% junior teachers and only 2.6% are teacher methodologists. Over 500 teachers have no qualification level assigned to them.
The minimum wage levels are agreed on the basis of standard working hours – that is 35 hours a week, compared with the usual 40 hours a week. Thus, the real income of teachers may be significantly lower in smaller rural schools with a low number of students, as teachers will also have less working hours as a result (EE0505101N). However, the regional gap should be balanced out by the annual minimum wage increase (Figure 1).
According to the agreement, the next wage negotiations will start in May 2009.
Agreed minimum wage levels of teachers, 2003–2009 (€)
Notes: The 2008 average wage refers to the third quarter.
Source: Statistics Estonia
Low average wages in education sector
The current government coalition has cited balancing the minimum pay of teachers with the national average wage level by 2011 as one of its priorities. Thereafter, the wages of teachers should be increased at least at the same pace as the average wage growth. However, according to Statsitics Estonia (Statistikaamet), teachers’ wages were lower than in most other occupational groups in the first quarter of 2008. The debate over the low income of teachers peaked in 2003 when a strike was organised by the Estonian Employees’ Unions’ Confederation (Eesti Teenistujate Ametiliitude Keskorganisatsioon, TALO) (EE0312103F).
Strike action was discussed by EHL again in 2008 when Estonia’s Prime Minister, Andrus Ansip, pointed to the need to cut the personnel expenses of the state sector in order to reduce the state budget. In 2009, the issue is again on the agenda in relation to budget cuts – in this regard, a 10% cut in the teachers’ wage fund is foreseen.
For its part, the Confederation of Estonian Trade Unions (Eesti Ametiühingute Keskliit, EAKL) argues that the current wage developments are not sufficient to reach the target average wage level by 2011. To reach this goal, EAKL insisted on a wage increase of EEK 1,000 (€64) for 2009 – the equivalent of a 10.8% increase – which would only cover inflation and an increase in teachers’ wages to three quarters of the national average. However, this demand was not met. Furthermore, cuts in the teachers’ wage fund are currently being discussed by the government.
Staffing problems
EHL has also highlighted the staffing problems in schools as many teachers leave their posts: more specifically, the share of teachers reaching pensionable age is increasing and as a result there is a lack of qualified staff. To deal with this problem, in addition to gradually increasing teachers’ wages, the provision of ‘start money’ of EEK 300,000 (€19,170) for young teachers taking up a teaching post in rural schools was introduced in 2008.
Commentary
Of the current total of 14,600 teachers in Estonia, about 85% of them are women. The high proportion of women in the profession highlights a gender-specific element regarding the issue of teachers’ low wages – especially when considering Estonia’s gender wage gap, which is currently one of the largest in Europe.
As a result of the current economic recession, cuts in the 2009 state budget are being discussed by the government, which also includes discussions on the teachers’ wage fund. No final decisions have yet been made, but the trade unions have expressed their discontent with the government’s proposals. It is believed that the minimum wage increase in 2009 will ease the effect of a budget cut on teachers’ wages.
Marre Karu and Kirsti Nurmela, PRAXIS Centre for Policy Studies
Eurofound recommends citing this publication in the following way.
Eurofound (2009), Teachers to get minimum wage increase in 2009, article.
