MINIMUM AND AVERAGE SALARY IN ESTONIA
Estonia is located in the northern part of Europe. In the east it borders with Russia, in the south with Latvia. Washed by the waters of the Baltic Sea. Since 2004 it is a member of the European Union, and in 2011 joined the euro zone. In terms of economic development and living standards, Estonia is considered the most prosperous country in the Baltics.
The population of Estonia is only 1.3 million people, and the labor force is about 694 thousand. The unemployment rate is around 4%. The largest city and capital of the country, Tallinn, is home to about 453 thousand people, of which about 40% are ethnic Russians. Let's find out what salaries in Estonia in 2020.
Minimum salary in Estonia
According to the official data of the Estonian government (Decree No 115 of 19.12.2019), the minimum wage in Estonia in 2020 is 584 euros per month or 7,008 euros per year. The hourly rate is 3.48 euros. This is the average among the Baltic countries. In Lithuania, workers receive a minimum of 607 euros, and in Latvia 430. For example, in Poland, the minimum wage is 2,600 PLN (570 euros).
Important. Estonian primary and secondary school teachers earn a minimum of 1,315 euros.
Compared to last year, the minimum wage in Estonia has increased by 44 euros per month or 8.15%. The inflation rate in 2019 was 1.8%, so the purchasing power of Estonian workers increased significantly. In the last 5 years the minimum wage in Estonia has increased by 194 euros – from 390 euros in 2015 to 594 euros in 2020.
Average salary in Estonia
According to the official information of the Estonian Statistical Office, the average salary in Estonia in 2020 is 1,472 euros per month. The hourly rate is 8.40 euros. Compared to last year, the salaries of Estonian workers have increased by 88 euros (1,384 euros in 2020). In the last 5 years the average salary in Estonia has increased by 433 euros.
The largest salary increase in Estonia was recorded in the "other services" sector – the activities of organizations, repair of household goods, cosmetic services (14%), as well as in health and social work (10%). Decreases were recorded in agriculture (1.9%) and real estate (0.7%).
In the public sector, the average monthly salary in Estonia is 1,525 euros (9.5% increase). In the private sector – 1 368 euros (6,7% growth). The highest average salary in Estonia is in information and communication, as well as financial and insurance activities, and the lowest in accommodation and catering services and real estate transactions.
| Sector of economy | Euro per month |
| Information and communication | 2,342 |
| Financial and insurance activity | 2,321 |
| Supply of electricity, gas, steam and air conditioning | 1,996 |
| Public administration and protection | 1,781 |
| Extraction of mineral resources | 1,638 |
| Professional and scientific-technical activity | 1,552 |
| Health care and social work | 1,495 |
| Water supply and waste management | 1,368 |
| Construction | 1,356 |
| Transportation and storage | 1,346 |
| Production | 1,339 |
| Education | 1,333 |
| Wholesale and retail trade | 1,315 |
| Administrative and support services | 1,211 |
| Art, entertainment and leisure | 1,155 |
| Fishing, agriculture and forestry | 1,141 |
| Operations with real estate | 1,042 |
| Accommodation and meals | 905 |
| Other services | 1,070 |
Note. Information on average wages by sector is based on official data from Statistics Estonia.
In conclusion, we note that the Estonian income tax rate from the salaries of employees is 20%. As of 1 January 2018, the total tax-free amount (basic exemption) is 6,000 euros per year (500 euros per month).
