However, wage growth has slowed, with 2023 reportedly seeing a higher growth rate.

Median wage, often more reflective of typical worker earnings, stood at €1,620, up from €1,500 in Q3 2023.

The significant gap between the average and median wages highlights potential income inequality, with high earners skewing the average upward.

Sectoral analysis reveals that the highest average monthly gross wages were found in information and communication (€3,506 per month gross), financial and insurance activities (€3,068 per month), and the energy sector: Electricity, gas, steam, and air conditioning supply (€2,540).

On the other hand, the lowest wages were observed in accommodation and food service activities (€1,285 per month), other services (€1,311), and in real estate brokering (€1,366).

Despite the disparities, sectors such as human health and social work activities recorded the largest year-on-year growth at 10.6 percent, followed by education at 9.6 percent, the agency reported.

However, these sectors, despite their strong percentage increases, may still struggle to compete with high-earning industries in terms of absolute wages, which can affect their ability to attract and retain talent.

Regional disparities in wages are also evident.

The highest average wages were recorded in Tallinn (€2,307 per month gross), Harju County, which includes Tallinn (€2,200 per month ), and Tartu County (€1,962).

Conversely, the lowest wages were found in Valga County (€1,452 per month), Võru County (€1,477), and Lääne County (€1,485).

Wage growth varied significantly, with Hiiumaa experiencing the largest growth rate at 10.7 percent, followed by Tartu County at 9.7 percent and Ida-Viru County at 9.1 percent.

Median wages further reflect these regional disparities, with Tallinn leading at €1,900 per month, followed by the surrounding Harju County at €1,821, and Tartu County at €1,661.

In contrast, the lowest median wages were in Võru (€1,252 per month), Valga (€1,271), and Ida-Viru (€1,272) counties, Statistics Estonia reported.

While the report highlights growth rates, it does not consider inflation-adjusted figures.

With the Consumer Price Index (CPI) in Estonia up by 4.1 percent on year to October, the 8.1 percent nominal wage growth may not translate into real purchasing power gains, especially for workers in low-wage sectors like accommodation and food services.

Statistics Estonia compiled the above report using data from the employment register of the Tax and Customs Board (MTA) and income along with social tax declarations.

More detailed information is available from Statistics Estonia here and here.

--

Follow ERR News on Facebook and Twitter and never miss an update!