Next year's new minimum wage marks an increase of €66, or 8 percent. It was confirmed based on the collective agreement signed by the Estonian Trade Union Confederation (EAKL) and the Estonian Employers' Confederation (ETK) on November 18.

This year's gross monthly minimum wage was €820. According to Estonian Tax and Customs Board (MTA) figures, as of the first nine months of 2024, an average of 16,600 full-time employees were earning the minimum wage, accounting for 3.5 percent of all full-time employees.

An average of another 18,800 full-time employees were earning between €821-902 a month, or up to 10 percent above the minimum wage, accounting for 3.9 percent of the country's full-time employees.

The Ministry of Finance estimates that this €66 a month increase in gross wages will generate approximately €17 million in additional tax revenue for the state budget next year.

The increase in Estonia's minimum wage will lead to a rise in wages pegged to it in both the private and public sectors. Benefits linked to the minimum wage, such as parental benefits, will increase as well.

The minimum wage increase may also result in higher support and benefits payments made by local governments, and could impact the prices of services they offer, such as kindergarten fees, if these are pegged locally to the minimum wage.

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