Estonian Health Insurance Fund to delay healthcare wage tariff increase by nine months

The chair of Estonia's Health Insurance Fund, Siiri Lahe, has announced that the next planned increase in medical service tariffs — the portion reflecting rising healthcare worker wages — will be postponed by nine months, from April 2027 to January 2028.

According to Lahe, the fund's four-year financial forecast still envisions healthcare workers' wages growing in line with the country's projected average wage growth. However, the tariff component that accounts for labor costs will now rise later than originally scheduled.

Lahe said healthcare workers perform important and responsible work for Estonia's residents and that their pay must keep pace with the times, but stressed the need to work within real financial constraints so that health insurance funds cover both wages and the availability of necessary medical services and medications. Her comments were relayed to ERR's radio news by the fund's press office.

Failed union negotiations

The decision follows unsuccessful negotiations between healthcare unions and employers over a new collective agreement. Unions had sought to have minimum wages for medical staff rise faster than Estonia's average wage over the next two years. No agreement was reached, and the unions have announced plans to turn to the state conciliator.

Unions said one reason the talks collapsed was a decision by Social Affairs Minister Karmen Joller and the Health Insurance Fund to redirect funds earmarked for 2027 minimum wage increases toward balancing the fund's own budget instead.

The Nurses' Union also noted that the average nurse salary often cited as a benchmark is largely achieved through night shifts, weekend and holiday work, overtime, and working multiple jobs. According to the union, care workers' base salary is more than a third lower than the national average wage.