Estonia, officially the Republic of Estonia, is a country in Northeastern Europe. It borders Latvia to the south and Russia to the east. To the north it is separated from Finland by the narrow Gulf of Finland and to the west from Sweden by the Baltic Sea. Its coastline is 3,794 km long. Estonia has been a member of the European Union since May 1, 2004. From the same year, the country, along with 6 other Eastern European countries, became a member of NATO. The population of the country is 1,357,739 people and the capital is called Tallinn.
By origin, Estonians are close to Finns, of minorities the most numerous are Russians (28%). The majority of the population (74%) lives in cities, mainly in the capital Tallinn, in the industrial center of Narva, around the famous summer resort of Pärnu.
Estonia is an industrial-agrarian country. The main industries are the extraction of peat and fuel shale, phosphates, mechanical engineering, chemical industry, woodworking, food, textile, sewing, fish canning, etc. Industries.
Agriculture – 20% of the country’s territory is cultivated. Leading branches in animal husbandry are dairy and meat cattle breeding and pig breeding. Fishing is developed.
Estonia has a fascinating history, a vibrant and vibrant culture, and offers tourists an incredible variety of landscapes, from dense forests, home to moose, bears, and wild boars, to Baltic beaches and offshore islands. Historic cities, castles, cathedrals, aristocratic mansions await visitors. Less than 20 years after secession from the Soviet Union, Estonia has become a sympathetic European country that has defended its national identity in the turbulent events of recent history.
In today’s episode, I will introduce you to minimum and average incomes, the variety of professions and the way salaries are distributed. Also, we will look at income and cost of living taxes in Estonia.
Minimum wage
The standard working time in Estonia is 8 hours per day, 40 hours within a five-day working week. The duration of one shift may not exceed 12 hours. Overtime is allowed by mutual consent and must not exceed an average of 48 hours in 7 days during a four-month billing period.
The employee can terminate the contract with the employer at any time with 2 weeks’ notice.
The duration of annual leave in Estonia is 28 days.
According to the Estonian statistical office, the minimum wage in Estonia in 2024 is € 725 per month (€ 4.30 per hour). This indicator is regulated by the local law “On Employment Contracts”, according to which, in the case of full-time employment in Estonia, every employee, including foreigners, receives a guaranteed salary not lower than the minimum level.
The current Estonian government is taking all necessary measures to protect the rights of the local workforce and increase the minimum wage.
Average salary
According to official information from the Statistical Office of Estonia, the average hourly wage in the country is 10 euros. In terms of average wages and quality of life, Estonian citizens are ahead not only of their closest neighbors – Latvia and Lithuania, but also of larger European countries such as Poland and the Czech Republic.
Thus, the average salary in Estonia in 2024 is € 1 775 per month and € 1 415 after taxes.
Currently, a large part of the workforce in Estonia performs their professional duties remotely, i.e. from home. The highest is the average monthly gross salary in state institutions and enterprises of foreign private individuals. The level of remuneration largely depends on the qualifications and education of the employee. By the way, the educational system at Estonian universities is considered to be of high quality.
Depending on the region, the average salary in Estonia ranges from € 1 185 to € 1 994 per month. The highest figures are in the city of Tallinn (€ 1 994), Harju County (€ 1 937) and Tartu County (€ 1 770), and the lowest in Jõgevamaa County (€ 1 185) and Valga County (€ 1 237). A job in the city of Tallinn can provide an average monthly income of more than € 1 800 – € 2 300. The cost per employee in Estonia is € 2 382 per month.
Average salary in Estonia by economic sectors per month:
Information and communication – 3 169 €
Financial and insurance activities – 2 717 €
Supply of electricity, gas, heating and air conditioning – 2 352 €
Public administration and protection – 2 334 €
Professional and scientific-technical activities – 2 121 €
Health and social activities – 1 910 €
Water supply and waste management – 1 777 €
Transport and storage – 1 723 €
Production – 1 692 €
Education – 1 682 €
Construction – 1 583 €
Wholesale and retail trade – 1 478 €
Fishing, agriculture and forestry – 1 455 €
Administrative and support services – 1 422 €
Arts, entertainment and leisure – 1 383 €
Real estate transactions – 1 361 €
Accommodation and food – 1 116 €
Payroll taxes
In case of residence in Estonia for up to 6 months during the year, a foreign specialist pays taxes on income received exclusively on Estonian territory. If the period of residence in Estonia exceeds 6 months, taxes are paid from any source of income in the world. With the exception of countries between which there are treaties for the avoidance of double taxation.
Social contributions and tax rates in Estonia in 2024:
Income tax – 20% (flat rate)
Unemployment insurance – 1.6% (employee) and 0.8% (employer)
Pension contribution – 2% (total rate)
As of January 1, 2018, the total tax-free amount (basic exemption) is € 6000 per year or € 500 per month.
If the average salary in Estonia in 2024 is 20 000 € (gross), then after all the mandatory social and tax deductions (net), the employee will be left with about 16 180 €.
Cost of living
Estonia is a country of lakes, rivers, hills, forests, and a coastline with a length of 2361 miles. There are hundreds of islands and islets along the coast of Estonia, but only ten of them have permanent human settlements. The country has an extremely interesting maritime history that few people know about. Estonia gained its independence from the Soviet Union in 1991 and is now extremely popular among digital nomads due to its affordability and low tax rates.
If you’re considering moving to Estonia, the various costs listed below will help you make an informed decision about the costs associated with moving and living in this part of the world.
Housing costs
Tallinn is the most popular city in Estonia. Unfortunately, there is a shortage of housing in the city due to many factors – the arrival of digital nomads and the crisis in Ukraine. Insufficient supply means higher housing costs. Many rental agencies and landlords also ask for a three-month rental deposit, which can be challenging for some prospective residents. Other areas of Estonia have not experienced a housing shortage, but rents and property prices have increased everywhere.
1 bedroom apartment (one-bedroom) outside the City Centre: €250 – €600
Food, Grocery and Restaurant Costs
Inexpensive restaurant: € 6 – € 18
Domestic beer: € 3 – € 6
Coca-Cola/Pepsi: € 1 – € 3
1L Milk: € 0.60 – € 1.20
Хляб: € 0.65 – € 2
12 яйца: € 1.19 – € 3.59
1kg chicken fillets: € 3.50 – € 9.90
1kg Beef: € 3.50 – € 9.90
1kg Apples: € 0.59 – € 2.50
1kg White Rice: € 1 – € 2.99
Transport fares
Estonia is a small country and has a good public transportation system, including trains, buses, ferries, and the metro. All major cities are located at a distance of three to four hours from each other. Tallinn provides free public transport (buses, trolleybuses and trams) for its residents and can extend the scope of this system to other cities in the country. Estonian public transport is reliable and punctual. Similarly, the rail service is owned by Elron which is a state-owned operator, and ferry services are provided by Kihnu Veeteed.
One-way ticket (local transport: € 0.80 – € 2
Monthly pass, (regular price): € 10 – € 30
Internet Price
€ 15 – € 17
Cost of clothing, personal items, gym and leisure
Pair of jeans: € 40 – € 120
Summer dress: € 20 – € 50
Running shoes (sneakers): € 50 – € 110
Business shoes: € 60 – € 150
Short visit to the doctor (15 minutes): € 50
Deodorant: € 4
Shampoo: € 3,74
Toilet paper (4 rolls): € 2.14
Monthly gym subscription: € 20 – € 65
Cinema ticket: € 7 – € 12