palgaindeksatsioon

Palgaindeksatsioon, also known as wage indexation, is an economic policy that automatically adjusts wages in line with changes in a specific price index, most commonly the consumer price index (CPI). The primary goal of palgaindeksatsioon is to maintain the purchasing power of wages, ensuring that workers' real income does not erode due to inflation. When the CPI rises by a certain percentage, wages are increased by a corresponding or partial percentage.

The implementation of palgaindeksatsioon can vary. Some systems provide full indexation, where wages are adjusted by the exact amount of inflation. Others offer partial indexation, adjusting wages by a fraction of the inflation rate. The frequency of adjustments also differs, with some systems updating wages monthly, quarterly, or annually.

Advocates of palgaindeksatsioon argue that it provides economic stability and fairness by protecting workers from inflation and reducing wage inequality. It can also simplify wage negotiations and contribute to predictable cost increases for businesses. However, critics suggest that it can fuel a wage-price spiral, where rising wages lead to higher prices, which in turn necessitate further wage increases. This can potentially exacerbate inflationary pressures and reduce the competitiveness of an economy. The effectiveness and desirability of palgaindeksatsioon are subjects of ongoing economic debate.