Survey organisers: Palgainfo Agentuur and job portal CVKeskus.ee
Compiled in Autumn 2024
Summary of the Labor Market and Salary Survey
Employees expect to earn a net salary of €2100 at their current job, which is €100 more than in Autumn 2023. When changing jobs, however, they expect an even higher salary – the median salary expectation in that case is €2300, according to the latest employee survey conducted by Palgainfo Agency and job portal CVKeskus.ee, which included nearly 7,000 participants.
The median salary expectation indicates the point at which half of the expectations are higher and half are lower. For an employer, meeting the €2100 net salary expectation means a total labour cost of over €3600 when taxes are included.
The gap between the actual and the desired salary figures has decreased slightly. In Autumn 2024, the desired salary was €480 higher than the actual salary, while the year before the difference was €500. Only 16% of employees consider it likely that they will receive their desired salary, with the majority not expecting to achieve it.
Employees justify their salary expectations with the rising cost of living and increased workloads – prices have risen, workloads have grown, but salaries have not been increased. 42% of employees said their salary had not changed over the last 12 months, compared to 34% the year before.
In recent years, the share of employees who state their living standards are poor has increased –18% of respondents reported they were struggling two years ago compared to 20% the year before and 22% in 2024. Employees who report poor living standards typically earn less than €1400 net, those who rate their living standard as average earn over €1700, and those who rate their living standard as good receive more than €2400 per month.
Poor standard of living and dissatisfaction with salary are pushing employees to look for new job opportunities. Over the last 12 months, the share of employees actively seeking for work or being open to job offers has increased – only 19% are not looking or are not open to offers. Those most interested in changing jobs are employees struggling financially, who see it as a way to significantly increase their salary.
Most employees would be willing to change jobs for a higher salary – only 8% would not switch under any salary offer. Over a quarter (28%) would consider changing jobs for a salary increase of 21–30%, while more than a third would want an even higher offer. Compared to the previous year, the share of employees willing to change jobs for an 11–20% salary increase has grown.
Employers expect slower and more modest salary increases in 2025
Nearly one in four employers believe that basic salaries will not be changed in their organisation over the next eight months, according to the latest employer survey by Palgainfo Agency and CVKeskus.ee from Autumn 2024, which had more than 300 organisations take part. Fewer employers are planning salary increases than in the last two years and the planned increases are more modest. Salary decisions are mainly based on the organisation’s financial results and pressure from labour shortages is felt less than in previous years.
This year (2024), 64% of surveyed organisations had increased their basic salaries, which is 10 percentage points less than in 2023 and 2022. Fewer organisations raised salaries for all employees and the increases have generally been more modest, mostly in the range of 5–6%.
Employer forecasts also indicate a slowdown in wage growth. Last autumn (2023), 44% of employers planned salary increases within eight months and in 2022 the figure was 51%, while this year (2024) it is at 42%. Compared to last year, more employers are uncertain about whether they will make any changes to salaries. In most cases, the planned increases affect all employees and are typically in the 5–6% range.
The survey results show that over the last two years, salary plans have been less influenced by new employees’ salary expectations and competitors' pay levels. Instead, decisions to change salaries are more often based on the organisation’s financial performance.