MINIMUM AND AVERAGE SALARY IN ESTONIA

Estonia is one of the smallest countries in the European Union, with a population of just over 1.3 million in 2024. However, in terms of average salaries and quality of life in general, Estonian citizens are ahead not only of their nearest neighbours, Latvia and Lithuania, but also of larger European countries, such as Poland and the Czech Republic. The Estonian economy is developing steadily and dynamically, and the real pride of the state is the information technology sector.

Today, with the help of the internet, it is possible to register your own business in Estonia in a matter of minutes. Online, foreigners are granted an Estonian residence permit and many other useful functions. The employment rate in the country is 69.1% and unemployment is about 7-8%. Further, we will find out what the minimum and average salary in Estonia in 2024 is, outline the tax rates and compare labour remuneration by economic sectors and individual regions.

Minimum wage in Estonia

According to the Estonian Statistical Office, the minimum wage in Estonia in 2024 is 820 euros per month (4.86 euros per hour). This figure is regulated by the local Labour Contracts Act, according to which, in case of full-time employment in Estonia, every employee, including foreigners, is guaranteed at least the minimum wage.

Compared to last year, the minimum wage in Estonia increased by 95 euros per month (13,1%). Inflation in Estonia at the end of 2023 slightly exceeded 9,1%, so the purchasing power of Estonian workers has increased. Over the past 10 years, Estonia's minimum wage has increased by 465 euros, from 355 euros in 2014, to 820 euros in 2024.

Important. Estonian primary and secondary school teachers earn a minimum of 1,749 euros.

In annual terms, the minimum wage in Estonia is 9,840 euros. Of course, in many EU countries this figure is significantly higher. For example, the minimum wage in Germany is 25,812 euros per year, i.e. the rate is almost 3 times higher. In France, workers receive at least 21,203 euros, and in Spain 15,876. The current Estonian government is taking all necessary measures aimed at protecting the rights of the local labour force and raising minimum wages.

Average salary in Estonia

According to the official information of Statistics Estonia, the average hourly wage in Estonia is 10 euros. Compared to the previous year, an increase of 9.7% was recorded. The annual income of an ordinary Estonian employee before taxes and social contributions is about 22,848 euros. Thus, the average salary in Estonia in 2024 will be 1,904 euros per month and 1,495 euros after taxes.

Information and communication professionals earn the most in Estonia (3,271 euros), financial and insurance activities (2,902 euros) and energy (2,548 euros). The economic activities with the lowest average salary are real estate operations (1,310 euros) and accommodation and catering services (1,116 euros). Earnings in trade and arts and entertainment have decreased.

Currently, a huge number of Estonian labour force performs professional duties remotely, i.e. from home. The highest average monthly gross wages are in public institutions and enterprises owned by foreign private persons. The level of labour remuneration largely depends on the qualifications and education of the employee. By the way, the education system in Estonian universities is considered to be of high quality.

Depending on the region, the average salary in Estonia varies from 1,408 to 2,121 euros per month. The highest figures are in Tallinn (2,121 euros) and Tartumaa county (1,941 euros), and the lowest in Saaremaa (1,449 euros) and Valgamaa (1,408 euros) counties. A job in Tallinn can provide an average monthly income of more than 1,800-2,300 euros. The cost per employee in Estonia is 2,382 euros per month.

Important. Over the last year, the largest salary increases in Estonia were recorded in education (18.6%) and health and social services (15.4%). In terms of regions, it is Ida-Viru County (13%) and Valgamaa County (11.5%).

You can calculate the average (net) salary in Estonia using an online calculator here. The table below shows the average monthly remuneration of Estonian employees in 2024 by economic sector (Official data of the Estonian Statistics Office).

Taxes on salaries in Estonia

In case of residence in Estonia for up to 6 months during a year, a foreign professional pays taxes on income earned exclusively on Estonian territory. If the period exceeds 6 months (residency), then from any source of earnings worldwide. Except for countries with double taxation treaties.

Rates of social contributions and taxes in Estonia in 2024

• Income tax – 20% (flat rate)

• Unemployment insurance – 1.6% (employee) and 0.8% (employer)

• Pension contribution – 2% (general rate)

As of 1 January 2018, the total tax-free amount (basic exemption) is €6,000 per year or €500 per month.

If the average salary in Estonia in 2024 is 20,000 euros (gross), an employee will be left with about 16,180 euros after all mandatory social and tax deductions (net).

HIGHEST PAID OCCUPATIONS IN ESTONIA

• Programmers

• Doctors – surgeons and anaesthetists

• Chief Executive Officers (CEOs)

• Lawyers

• Bankers, financiers

• Engineers in executive positions

• Aviation pilots

• Sales professionals

• Marketing and communications experts

• Maritime transport and shipping specialists

Cost of living in Estonia

Compared to most Western European countries, living in Estonia is quite cheap. However, in recent years, experts have noted a significant increase in property and utility prices.

Basic costs in Estonia:

• Rent: 500-700 euros per month for a one-bedroom flat in the centre.

• Utility bills: 250-300 euros per month.

• Food: 150-200 euros per month per person.

• Transport: 30-40 euros per month by public transport or 100-150 euros per month by car.

• Internet/mobile phone: 40-50 euros per month.

• Clothing and leisure activities: 300-500 euros per month.

Frequently asked questions about salaries in Estonia:

1. What is the average salary in Estonia?

• Before taxes, the average salary in Estonia in 2024 is €1,904 per month.

2. What is the minimum wage in Estonia?

• The minimum wage in Estonia in 2024 is €820 per month (€4.86 per hour).

3. What is the highest earning job in Estonia?

• The highest paid professions in Estonia are programmers, doctors and CEOs of large companies.

4. Which job brings the lowest income in Estonia?

• Representatives of unskilled labour – cleaners, waiters, cooks' assistants, loaders, shop assistants, maids and so on – earn the least in Estonia.

5. What is the average salary of programmers in Estonia?

• The average income of programmers in Estonia is estimated at 30,000 euros per year.

6. What is the payroll tax in Estonia?

• The income tax rate in Estonia is 20%.

7. What is the average salary in Tallinn?

• The average salary in Tallinn in 2024 is €2,121 per month.

8. What is the average median salary in Estonia?

• The average median salary in Estonia in 2024 is €1,578 per month.

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