Fontes: average gross wages to grow further
23.02.2012, 12:00Estonia’s average gross wages are likely to continue growing in the long term at a modest pace because business remain cautious about the future, believes Irja Rae, board member of Fontes consultancy.
„Based on long-term statistics and the fact that the Estonian economy was relatively unstable in 2011, one can say that the average gross wage figure for the fourth quarter was expected,” said Rae.
She added that one needs to consider that there is also monthly volatility in gross wages, probably resulting from payment of half-year and full-year bonuses and quarterly performance-based pay.
„Another thing that is expected is that when the average gross wages were 918 euros in December, the January figure will be between 820 and 840 euros.”
„Companies are revising wages and change them in accordance with the employee’s contribution and market situation. Average gross wages have been increasing mainly because of changes in variable fees, not in basic wage.
Statistics Estonia announced yesterday that average gross wages in the fourth quarter increased 6.3 percent in a year to 865 euros. Real wages that are adjusted by consumer price index and reflect the purchasing power of wages, increased 2.1 percent in the fourth quarter. In annual comparison, real wages were increasing for the second quarter in a row, following 11 months of year-on-year decline.