The minimum wage will increase to €584 in 2020 the government agreed on Thursday, fixing the minimum hourly rate at €3,48.
The minimum wage is based on the agreement signed on November 25 between the Trade Union Confederation and the Employers' Confederation, in which they agreed to raise the minimum wage in 2020.
The minimum wage will increase from €540 in 2019. The average wage for the third quarter in 2019 was approximately €1,300.
Minister of Social Affairs Tanel Kiik (Centre) said: "It is important that the minimum wage rises consistently and also enables a decent living in Estonia. With a minimum wage, we ensure a minimum level of well-being for people, but our goal for the coming years must be to reach at least 40 percent of the average wage."
The Tax and Customs Board said around 4.3 percent of full-time workers earned the minimum wage each month in 2019, approximately 20,500 people.
Editor: Helen Wright