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See moreStructured Estonians, hardworking Latvians and bold Lithuanians – how work cultures differ across the Baltics
The Baltic region is often perceived as a single entity. For many foreign investors, Estonia, Latvia and Lithuania tend to blend into one whole. However, when working with people and organizations across all three countries, it becomes clear that behind this shared perception lie three rather distinct work cultures, experiences and approaches to problem-solving. We are united by similar values – education, stability and the desire to receive fair compensation – yet the ways in which we seek to achieve these goals can differ.
Read articleBeyond Compliance: How the EU Pay Transparency Directive Can Transform Employee Engagement
The European Union's Pay Transparency Directive, which member states must transpose into national law by June 2026, has sparked considerable discussion among HR professionals and business leaders. While much of the conversation has centred on compliance requirements, reporting obligations, pay gap assessments, and potential penalties, there's a far more compelling story beneath the regulatory surface. This directive presents organizations with a unique opportunity to address what research consistently shows is one of the most powerful drivers of employee satisfaction: transparency in compensation systems.
Read articleBaltic salary markets in 2026: similar salary increases, different labour-market realities
Figure’s forecast survey tells us that looking ahead to 2026, the Baltic countries appear, at first glance, to be moving in sync, but labour market dynamics are diverging according to perceived economic realities of the last few years. Salary growth is slowing down across the Baltics, and inflation is no longer the dominant driver of pay decisions. Employers across Estonia, Latvia and Lithuania are approaching the year with cautious optimism rather than urgency, being more optimistic towards the south of the region.
Read articleFigure Baltic Advisory: Salaries will rise by an average of 5% in 2026, but plans for the workforce remain cautious
Figure Baltic Advisory's latest salary market forecast survey shows that Estonian employers plan to increase their employees' base salaries by an average of 5% this year, which is the same as last year. At the same time, there is growing caution among employers – a record 66% of organizations plan to reduce their workforce, which is the highest figure during the last 15 years.
Read articleBonuses and performance-based pay in Estonia
Variable pay is part of the Estonian wage policy culture. A good child has many names: bonus, additional pay, performance-based pay or 13th salary. Since different organizations use different terms to describe the same type of variable pay component, for the sake of clarity, we should start by defining what each term means in the context of this article.
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