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 2026
Minimum Monthly Wage
- 886 euros per calendar month (January – March)
- 946 euros per calendar month (from April)
- Increase 6.8% compared to 2025
Minimum Hourly Rate
- 5.31 euros per working hour (January – March)
- 5.67 euros per working hour (from April)
- Increase 6.8% compared to 2025
The minimum wage rates effective from April 1, 2026 are established by Government Regulation 23.03.2026 No. 36.
Minimum wage 2027
The 2027 minimum wage has not been agreed yet. The Estonian Trade Union Confederation and the Estonian Employers’ Confederation started negotiations on October 12, 2026. MKE, 12.10.2026
Under the 2023 goodwill agreement, the goal is a minimum wage of 50% of the average gross wage in 2027. The social partners agree on the exact amount each autumn, based on the latest Bank of Estonia forecast, and the minimum wage grows by no more than 16% a year. Goodwill agreement 2024–2027
We will add the 2027 rates here once they are confirmed.
Minimum wage History
* 2026 – alates aprillist
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 2026
If an employee has joined the funded pension (2%) and wishes to apply the tax-free income (€700/month) on their wages, then in 2026, for full-time work at the April minimum (946 €), their wage calculation would be as follows:
| Gross salary | 946.00 € |
| Funded pension | 18.92 € |
| Employee unemployment insurance | 15.14 € |
| Income tax | 46.63 € |
| Net salary | 865.31 € |
In addition, the employer pays to the state: | |
| Social tax | 312.18 € |
| Employer unemployment insurance | 7.57 € |
Total cost to employer: | |
| Gross salary | 946.00 € |
| Social tax | 312.18 € |
| Employer unemployment insurance | 7.57 € |
| Total | 1265.75 € |
Minimum wage Statistics
Since the introduction of the euro, the minimum wage has grown by an average of 8.7% per year.
| Aasta | Kuupalk | Tunnipalk | Kasv |
|---|---|---|---|
| 2011 | 278 € | 1,73 € | 0% |
| 2012 | 290 € | 1,80 € | 4.3% |
| 2013 | 320 € | 1,90 € | 10.3% |
| 2014 | 355 € | 2,13 € | 10.9% |
| 2015 | 390 € | 2,34 € | 9.9% |
| 2016 | 430 € | 2,54 € | 10.3% |
| 2017 | 470 € | 2,78 € | 9.3% |
| 2018 | 500 € | 2,97 € | 6.4% |
| 2019 | 540 € | 3,20 € | 8% |
| 2020 | 584 € | 3,48 € | 8.1% |
| 2021 | 584 € | 3,48 € | 0% |
| 2022 | 654 € | 3,86 € | 12% |
| 2023 | 725 € | 4,30 € | 10.9% |
| 2024 | 820 € | 4,86 € | 13.1% |
| 2025 | 886 € | 5,31 € | 8% |
| 2026* | 946 € | 5,67 € | 6.8% |
* 2026 – alates aprillist