Minimum wage

Minimum wage is the lowest permitted gross remuneration that an employer may pay to a full-time employee (40 hours per week). If an employee works part-time, the wage may be reduced proportionally. The minimum wage is typically raised once a year, in January.

TLS § 29 lg 5 and 6

Minimum wage Rates 2025

Minimum Monthly Wage

  • 886 euros per calendar month
  • Increase 8% compared to 2024

Minimum Hourly Rate

  • 5.31 euros per working hour
  • Increase 8% compared to 2024

The minimum wage rates effective from January 1, 2025 are established by Government Regulation

19.12.2024 No. 87

.

Minimum wage History

Setting the Minimum wage

The minimum wage is determined by the Government of the Republic, which confirms it by regulation or law. According to Estonian practice, the national minimum wage is actually agreed upon by social partners – the Estonian Trade Union Confederation and the Estonian Employers’ Confederation. The government has followed the agreement of social partners and established the minimum wage as agreed by them.

Minimum wage negotiations are based on:

  • the state of the economy
  • the inflation rate
  • the average salary
  • changes in living standards
  • and other similar factors

Example: Minimum wage Calculation for 2025

If an employee has joined the funded pension (2%) and wishes to apply the maximum tax-free income on their wages, then in 2025, for full-time work, their wage calculation would be as follows:

Gross salary886.00 €
Funded pension17.72 €
Employee unemployment insurance14.18 €
Income tax44.02 €
Net salary810.08 €

In addition, the employer pays to the state:

Social tax292.38 €
Employer unemployment insurance7.09 €

Total cost to employer:

Gross salary886.00 €
Social tax292.38 €
Employer unemployment insurance7.09 €
Total1185.47 €

Minimum wage Statistics

Since the introduction of the euro, the minimum wage has grown by an average of 8.7% per year.

AastaKuupalkTunnipalkKasv
2011278 €1,73 €0%
2012290 €1,80 €4.3%
2013320 €1,90 €10.3%
2014355 €2,13 €10.9%
2015390 €2,34 €9.9%
2016430 €2,54 €10.3%
2017470 €2,78 €9.3%
2018500 €2,97 €6.4%
2019540 €3,20 €8%
2020584 €3,48 €8.1%
2021584 €3,48 €0%
2022654 €3,86 €12%
2023725 €4,30 €10.9%
2024820 €4,86 €13.1%
2025886 €5,31 €8%