Raha Töölaud

How to Account for a Changing Minimum Wage Over the Year

Understanding the Challenge of a Mid-Year Wage Change When the statutory minimum wage changes partway through a calendar year, both employers and payroll administrators face a question: how do you calculate earnings correctly for an employee whose hourly or monthly rate shifts from the old minimum to the new one? In Estonia, where the minimum wage can be adjusted from 1 January or sometimes from a later date, the key is to treat each pay period separately and then sum every