Minimum wage in Estonia 2026: monthly and hourly rates

What is the minimum wage in Estonia in 2026?

The €60 rise follows an agreement signed on 17 February 2026 by the Estonian Employers’ Confederation and the Estonian Trade Union Confederation, which the Government confirmed in March 2026. Because the new rate took effect in April rather than January, check pay for January–March against the old rates and pay from April onwards against the new ones.

The monthly figure is the floor for full-time work, which the Employment Contracts Act (TLS) presumes to be 40 hours over seven days (TLS § 43(1)). The hourly figure is the floor for each hour worked, which is what protects part-time and hourly-paid employees.

Who sets the minimum wage, and can an employer pay less?

The rule is mandatory: a contract term that sets pay below the minimum is void, because agreements that deviate from the TLS to the employee’s detriment are void (TLS § 2). It protects every employee working under an Estonian employment contract, whatever their nationality. It does not cover genuine contractors under a service contract, who agree their own fees.

The TLS leaves the structure of pay to the parties – a monthly salary, an hourly rate or piece rates – but the Labour Inspectorate’s guidance is clear that the result must not fall below the minimum. A collective agreement that covers your employer can set higher pay.

Check these clauses in your own contract – free summary →

How do overtime, night and public holiday pay work on the minimum wage?

Overtime is compensated with equal time off unless money was agreed, in which case the rate is 1.5 times the wage (TLS § 44(6)–(7)). Night work between 22.00 and 6.00 is paid at 1.25 times the wage unless the agreed pay already includes it, and public holiday work at twice the wage; extra time off can be agreed instead (TLS § 45). The Labour Inspectorate’s guidance adds that pay set at the statutory minimum cannot be treated as already including the night-work premium.

A recent amendment allows a written flexible working-time agreement (TLS § 43³), but only if the employee’s hourly pay is at least 1.2 times the minimum hourly wage and at least 10 hours a week are agreed. At the 2026 rate that is €6.804, so at least €6.81 an hour in whole cents.

What must your employment contract say about pay?

If payday falls on a public holiday or a day off, it moves to the preceding working day (TLS § 33(2)). Pay goes to the bank account you choose unless agreed otherwise (TLS § 33(4)), taxes are deducted from the agreed wage and the wage is paid in money (TLS § 29(3)). If no wage was agreed, or the agreement cannot be proved, you are owed the pay set in the applicable collective agreement or, failing that, the usual pay for similar work (TLS § 29(2)).

Check that the guaranteed part of your pay, meaning what you receive regardless of bonuses, targets or premiums, is at least €946 a month for full-time work or €5.67 an hour. Be wary of a monthly figure described as including overtime or night-work premiums, and ask about any deduction you do not understand.

How much is the Estonian minimum wage after tax?

The calculation: from €946 the employer withholds the 1.6% unemployment insurance premium (€15.14) and the 2% pension contribution (€18.92). Income tax of 22% is then charged on the amount above the €700 basic exemption, which comes to €46.63, leaving about €865.31. The figure changes if you pay no pension contribution or use the basic exemption elsewhere.

The employer’s social tax on €946 is €312.18. Rates and exemptions come from the Tax and Customs Board; ask your payroll team for your exact figure.

What can you do if you are paid less than the minimum wage?

If you resign because the employer has materially breached the contract, it must pay you three months’ average pay, which the committee or court may adjust (TLS § 100(4)). Keep payslips, timesheets and messages about your hours. The Labour Inspectorate’s work-life portal, tooelu.ee, explains the dispute process in English; for larger sums, an Estonian employment lawyer can assess your claim and the deadlines that apply.