Pay and remuneration

Fair pay is fundamental in working life. Without a decent salary, it is difficult for people to plan their lives, start a family or cover their expenses. In accordance with the Employment Contracts Act, employees must be paid a normal and reasonable salary for their work. Minimum wages are determined by means of sector-specific collective agreements. In other words, an employee’s salary must not be lower than the minimum wage specified in the collective agreement.

Salary can be paid on a monthly or hourly basis, for example. Monthly salary is paid once a month, and the pay period is one month. Hourly salary is generally paid every two weeks based on the number of hours completed. An employee should agree on their salary in writing in connection with their employment contract.

Salary is just one part of remuneration. Other ways of material remuneration include performance bonuses and various employee benefits, for example. STTK safeguards the interests of employees, and we work to strengthen fair pay and remuneration. All employees are entitled to remuneration, not just the senior management.

Remuneration of all employees

All employees must be provided with their fair share of the result achieved. Nearly 50% of professionals continue to remain outside incentive systems, which hinders the implementation of fair pay and effective remuneration. Employers must increasingly involve employees in the development of pay and remuneration systems.

Employees must have information about their pay and remuneration systems: the amount of rewards and salary increases, the grounds for rewards and salary increases, sources of information about pay and remuneration, and the related decision-making process.

To promote fairer pay, shop stewards must have the right of access to all employees’ individual salary information, including all salary elements.  Pay equality between genders can be improved by increasing pay transparency.

Salary negotiations

Annual salary increases are agreed during collective bargaining between trade unions and employers’ organisations. This requires a confidential relationship between the parties to the agreement.