Salaries in Estonia

Estonia has the highest number of startups per capita in the world. A high level of digitalization, along with the development of in-demand technologies and industries, makes the country attractive for relocation.

Is moving here beneficial for expats and labor migrants? In this article, we look at the average salaries in Estonia across different professions.

Please note that all figures in this article are given before taxes. Taxes and social security contributions account for at least 25.6% of gross salary. We explain how to calculate taxes in detail below.

By the end of Q3 2025, employed residents of Estonia earned an average of €2,075 per month, which is 6% higher than in the same period last year.

However, the average salary does not fully reflect the real situation, as it includes the incomes of all residents, including very high earners. This skews the figure upward. A more accurate picture is provided by the median salary.

In Estonia, the median salary in Q3 2025 was €1,722. This indicator shows how much a typical employee earns.

The minimum wage in Estonia as of January 2026 is €886 per month for full-time employment (40 hours per week). In the coming months, it is expected to increase by €45–100, although the exact figures have not yet been officially published.

For comparison, minimum wages in other Baltic countries in 2026 are:

The lower wage threshold is reviewed annually by the government, taking into account the needs of both citizens and businesses. These decisions are not made unilaterally: employer associations and labor unions are also involved, and their positions do not always align. As a result, updates can sometimes be delayed — which is exactly what happened in 2026.

The Estonian government aims to improve conditions for workers in low-paid jobs. The long-term goal is for the minimum wage to reach 50% of the average salary.

Estonia is a highly technological country and ranks among the leaders in digital development. It has the highest number of startups per capita in Europe. The IT sector accounts for 9% of GDP, making it one of the key industries in the national economy.

Salaries in Estonia’s IT sector are relatively high. At the same time, competition among candidates can be intense, as Estonia leads Europe in the number of graduates with IT degrees. The industry does not suffer from a shortage of professionals. Income levels depend on specialization, education, and work experience.

Estonia has a large number of public and private clinics and laboratories. For example, Tallinn is home to an innovative multiple sclerosis treatment center that specializes in complex neurological conditions. Medical tourism is also well developed in the country.

The Estonian healthcare system faces a serious shortage of specialists, including narrow-profile doctors, physiotherapists, pharmacists, and mid-level medical staff.

Retail trade makes a significant contribution to Estonia’s economy. Overall, since the pandemic, the retail sector has been losing influence due to rising prices and declining purchasing power. In addition, there is currently an oversupply of labor in this field. However, specialists in medical equipment sales remain in demand.

About 70% of Estonia’s working population is employed in the service sector, and this share has been growing for several years. As across the European Union, services play a crucial role by providing employment for a large portion of the population.

The real estate market is particularly strong, with an annual turnover of around €2.5 billion. Healthcare and social work rank second, followed by education. Tourism, however, was hit hard by the pandemic and has only recently begun to recover.

Interest in the service sector among labor migrants has declined. In addition, hotel and restaurant staff typically earn close to the minimum wage in Estonia.

Estonia’s manufacturing sector is strong and well developed. The country particularly excels in electronics, mechanical engineering, woodworking, paper production, and food manufacturing. Estonia is a major exporter of electronic equipment, timber and wood products, as well as food products.

The labor market is in need of process engineers, electrical engineering specialists, maintenance technicians, and machine operators.

Large land areas, forests, and fertile soil provide Estonia with strong opportunities in agriculture. Grain crops, potatoes, and vegetables play an important role, along with livestock farming. This supports the production of dairy products, meat, and fish for both the domestic market and export.

Labor migrants can come to Estonia for seasonal work, for example as farm helpers. The average monthly salary of an agricultural worker ranges from €1,000 to €1,400, while mechanics and equipment repair specialists are particularly in demand.

There are many job opportunities in childcare, elderly care, and support for people with illnesses. Both unskilled labor and qualified specialists are needed, including drivers, construction equipment operators, builders, mechanics, and installers.

Earnings in Estonia depend on the region of employment. The table below shows median salaries, which better reflect how much an average employee earns. For clarity, the figures are rounded and grouped by counties.

The highest wages are recorded in Harju County, where the median salary reaches €1,925. This region is home to Estonia’s capital, Tallinn, and it is not surprising that incomes here are higher. Harju County is the country’s main economic hub, generating up to 60% of Estonia’s GDP. Many IT companies and major financial centers are located here, and it is also the most popular region for employment among labor migrants.

Relatively high salaries are also typical for Tartu, Estonia’s second-largest city.

In Estonia, salary taxes are withheld by the employer, while companies also pay social contributions from their payroll fund.

The personal income tax (PIT) rate in Estonia is 22%. It is a flat rate, meaning it does not depend on the size of the salary or the taxpayer’s residency status. The same rate applies to income from rental property, dividends, and other types of personal income.

Income of up to €700 per month (€8,400 per year) is exempt from personal income tax. To apply this tax-free allowance, an employee must submit a written request to their employer.

Mandatory social contributions for pensions and health insurance in Estonia are paid by the employer. Companies transfer 33.8% of the gross salary to social funds:

These contributions are paid on top of the employee’s gross salary and do not reduce the agreed salary amount.

To better understand how taxation works in Estonia, let’s break down the salary structure:

From the gross salary, the following deductions are made:

Net salary — the take-home pay an employee receives after all deductions.

Suppose a labor migrant is offered a salary of €1,800 gross.

The employer additionally pays 33.8% of this amount toward social contributions, but these costs do not affect the employee directly, as they are already included in the wage fund.

From the employee’s €1,800 gross salary, the following deductions apply:

To avoid calculating net salary manually, you can use free online calculators, such as kalkulaator.ee or palgakalkulaator.ee.

Around 11% of Estonia’s workforce consists of foreign nationals from non-EU countries. Among them are many workers from Moldova and Uzbekistan, as well as migrants from Azerbaijan, Turkey, Nigeria, India, and Iran. The majority of foreign workers arriving on work visas are men.

The salary of a seasonal, low-skilled worker is usually close to the minimum wage — just under €900 before taxes and contributions. The lowest earnings are typical in restaurants and hotels, as well as in forestry and agriculture.

By contrast, IT specialists among expats are paid significantly more. On average, foreign professionals in the tech sector earn around €3,600 per month, and their salaries are generally no lower than those of local residents. Experienced developers can earn €5,000 or more per month, which allows not only for a comfortable standard of living in Estonia but also for building financial savings.

When planning a move to Estonia for work, it is important to assess how in demand your profession is on the local labor market.

Estonia is one of the most technologically advanced countries in Europe: 99% of transactions are carried out digitally. Both locals and migrants rarely use cash. Domestic money transfers are straightforward — funds are usually sent via SEPA using an IBAN account number.

Sending an international money transfer from Estonia is also easy, even if the recipient country is outside the EU. For example, this can be done using the Korona app. It supports 50+ destination countries, including Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, and Uzbekistan.

To make an international transfer from Estonia, you need to install the Korona app and sign in using a European phone number. The transfer can be paid for with a European bank card.

The service allows recipients to receive money directly to a bank card or in cash at partner locations. The available payout options depend on the recipient’s country.