Survey organizers: Palgainfo Agentuur and job portal CVKeskus.ee
Compiled in autumn 2024
Employees' net salary expectations have increased by 100 euros in a year
Employees expect to earn a net salary of €2100 at their current job, which is €100 more than in autumn last year (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 including taxes.
The gap between actual and desired salary has slightly decreased – this autumn, the desired salary exceeds the actual salary by €480, while last year 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 workload – prices have risen, workloads have grown, but salaries have not been increased. 42% of employees say their salary has not changed over the past year, compared to 34% last year (2023) who had not received a pay raise.
In recent years, the share of employees who assess their financial coping as poor has increased – two years ago, 18% reported struggling, last year 20%, and this year 22%. Employees who report poor financial coping typically earn less than €1400 net, those who rate their coping as average earn over €1700, and those coping well receive more than €2400 per month.
Poor financial coping and dissatisfaction with salary are pushing employees to look for new job opportunities. Over the past year, the share of employees actively seeking or open to job offers has increased – only 19% are not looking and 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 moving for a salary increase of 21–30%, while more than a third would require an even higher offer. Compared to last year, the share of employees willing to move for an 11–20% salary increase has grown.
Employers expect slower and more modest salary increases in 2025
Meanwhile, nearly one in four employers believe that base 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 in autumn 2024 with the participation of over 300 organizations. Fewer employers are planning salary increases than in the past 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 have increased base 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 42%. Compared to last year, more employers are uncertain about whether they will change 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 past 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.