Average Salary in Estonia

Table of Contents

How much does an Estonian worker earn?

The average monthly wage in Estonia is around 2,740 EUR. Pay ranges from 690 EUR to 12,200 EUR. The average monthly wage in Estonia has seen a steady increase over the past few years. In 2018, the average monthly wage was 2,565 EUR. This increased to 2,690 EUR in 2019, and then to 2,740 EUR in 2020.

While the average monthly wage is a good indicator of earnings in Estonia, it is important to keep in mind that there is a large range in earnings.

For example, the lowest 10% of earners make less than 690 EUR per month, while the highest 10% of earners make more than 12,200 EUR per month.

Distribution of Estonian Income

Salary Scale

Estonian wages vary from 690 EUR to 12,200 EUR per month. The average salary is 3,770 EUR per month.

These numbers, however, are significantly influenced by the high number of minimum wage earners in Estonia. The minimum wage in Estonia is currently 470 EUR per month, and about 8% of all workers earn the minimum wage or less.

Median Earnings

One-half of the population earns less than 2,740 EUR per month on average, whereas the other half earns more than 2,740 EUR per month. The median pay is the figure in the center. Workers in the bottom 10% earn an average of only 690 EUR per month, whereas workers in the top 10% earn an average of 9,320 EUR per month. The top 1% earn an average of 12,200 EUR per month.

As you can see from these numbers, there is a significant gap between the rich and the poor in Estonia. The top 10% of earners make nearly four times as much as the bottom 10%. And the top 1% make nearly eighteen times as much as the bottom 10%.

Percentiles

75% of the population earns more than 1,540 EUR, while 25% earn less than this amount. 50% of the population earns more than 990 EUR, while 50% earn less than this amount.

Income is distributed very unevenly in Luxembourg, with the top 10% of earners taking home more than 4,770 EUR per month and the bottom 10% earning less than 580 EUR. However, even those in the bottom 10% are still earning more than the national median income of 990 EUR.

Is there a difference between a person’s average and median earnings?

Both are strong indicators of a person’s earnings.

However, the median gives a better indication of what a person earns in the middle of their career, while the average is more indicative of what a person earns throughout their entire career.

The average earnings are all the values added up and divided by how many there are, this will give you the mean. The median is worked out by finding the value in the middle when they are ordered from smallest to largest. So if there was a list of 5 people’s ages, the median would be the age of the third person on that list.

Comparison of Salaries based on Years of Experience

How does a person’s income grow over time in Estonia?

The average salary in Estonia grows fairly linearly with experience. For example, a person with 0-5 years of experience can expect to earn an average salary of €1,200 per month.

This number gradually goes up to €2,400 for someone with 20+ years of experience.

Interestingly, there is not a huge difference in salaries between someone with 5-10 years of experience and someone with 10-15 years of experience. This could be because many people in Estonia change jobs frequently, so their experience is spread out across multiple employers.

There is a slight decrease in salaries for people with 15-20 years of experience, which could be because many people in this age group have already reached the peak of their careers and are no longer receiving raises or promotions.

Comparison of Earnings based on Education

How much of a difference does education make in terms of pay in Estonia?

The difference in earnings based on education is significant in Estonia. Those with higher education earn almost double what those with a lower education do.

This difference is likely because those with higher education have better job prospects and are more likely to be employed in higher-paying jobs. This is especially true for those with a university degree, which is the highest level of education.

Having a Master’s degree also leads to higher earnings, although not as much as a university degree. This is likely because a Master’s degree is usually required for jobs that are higher paying.

Overall, it is clear that education plays a big role in earnings in Estonia. Those with higher levels of education tend to earn more than those with lower levels of education. This difference can be significant, especially for those with a university degree.

Comparison of Gender-Based Salary Levels in Estonia

On average, men in Estonia earn 4% more than women in all industries combined. This gender pay gap is relatively small compared to the OECD average of 13%.

When looking at specific industries, the gender pay gap is larger within certain sectors. For example, in information and communication technologies (ICT), men earn 18% more than women on average. In contrast, women working in education earn 2% more than their male counterparts.

The largest differences in earnings between men and women are found at the top and bottom of the wage distribution. Men earning in the top 10% of earners make 26% more than women in the same percentile. At the other end of the spectrum, men earning in the bottom 10% make 6% less than women in the same percentile.

When comparing hourly wages, men earn 7% more than women on average. However, women are more likely to work part-time than men (42% of women compared to 10% of men). When looking at full-time workers only, men and women earn 8% more per hour.

The gender pay gap in Estonia is relatively small compared to other OECD countries. This may be due in part to the high level of education and workforce participation among women in Estonia.

In general, the smaller the gender pay gap, the greater the equality between men and women in terms of earnings and opportunities.

Annual Average Income Increase in Estonia

In Estonia, how much is the average yearly raise? Are increases given to staff on a more regular basis?

Every 18 months, Estonian workers may expect to see an average 8% rise in their take-home pay. This is based on data from Statistics Estonia, which show that between 2006 and 2018, salaries in the country increased by an average of 62%.

When broken down by sector, those working in information and communication activities saw the biggest salary growth at 86%, followed by arts, entertainment and recreation (77%), and education (69%). The smallest increases were seen in agriculture, forestry and fishing (21%), public administration and defence (39%) and manufacturing (41%).

Interestingly, while workers in the capital city of Tallinn enjoyed the biggest salary growth of any region at 72%, those in Ida-Virumaa – home to many of Estonia’s heavy industries – saw wages increase by just 47%.

Growth Figures For Each Business In

Information Technology – 6%
Banking – 5%
Consulting – 4%
Healthcare – 7%
Media – 9%
Retail – 11%
Telecommunications – 14%
Transportation – 16%

The transportation sector is expected to experience the highest growth in, at 16%. This is followed by the retail sector at 11%, the telecommunications sector at 14%, and the media sector at 9%.

The healthcare and consulting sectors are both expected to see healthy growth in, at 7% and 4%, respectively. The banking sector is expected to see modest growth of 5%, while the IT sector is expected to see a slightly slower growth of 6%.

Rate of Increase in Salary based on Experience Level in Estonia

Junior level workers in Estonia receive an average salary increase of 3-5% per year. For senior-level workers, the average salary increase is 5-10% per year. Management level salaries can see an increase of 10-15% per year.

The amount of experience an employee has directly impacted their salary growth potential in Estonia. Junior level workers with 0-5 years of experience receive an annual salary increase of 3-5%. Senior-level employees with 5-10 years of experience can expect to receive an annual salary increase of 5-10%. Employees at the management level with 10-15 years of experience will receive an annual salary increase of 10-15%.

These are general guidelines for salary increases in Estonia. Individual companies may have different policies in place regarding salary increases. It is important to speak to your human resources department to find out what the specific policy is at your company.

Estonian Bonus and Reward Rates

How frequently and how much are bonuses given to Estonian workers?

In Estonia, 49% of employees stated they didn’t get any bonuses or incentives last year, while 51% said they did. The most common bonus in Estonia is an annual bonus, given to 21% of workers. The median bonus is approximately €300.

Do Estonians receive rewards for good work?

According to the 2017 European Working Conditions Survey, 43% of Estonian employees feel they are rewarded enough for the good work they do. This is lower than the EU average of 50%.

However, it should be noted that this question was asked of all employees, regardless of whether or not they received a bonus or incentive.

Various Types of Bonuses

Individual Bonuses based on Performance

Companies offer various types of bonuses to their employees based on individual performance. The amount of the bonus may vary from company to company and even from position to position within the same company.

Typically, a good performer is rewarded with a higher bonus than an average performer.

Bonuses for Company Performance

Bonuses like this are often given when a company reaches its quarterly or annual sales goals. These are typically given to all employees, regardless of individual performance. The size of the bonus may be determined by the company’s overall profitability for the period.

Goal-based Bonuses

This type of bonus is when an employee achieves a specific goal, such as increasing sales by a certain percentage, developing a new product or service, or reaching a milestone in a project.

These bonuses are usually given in addition to the employee’s regular salary or an hourly wage.

Employee Bonuses During the Holidays / End of Year

This is a common type of bonus, especially in the retail industry. Many companies give their employees a holiday bonus, which is usually a percentage of their regular pay. Some companies also give an end-of-year bonus, which may be based on the company’s overall performance during that year.

Some employers give bonuses to their employees at other times during the year as well, such as for birthdays or anniversaries. These are usually small bonuses, given as a gesture of appreciation for the employee’s work.

Comparison of Bonuses for Different Professions in Estonia

What makes a job worth the high pay and generous bonuses?

Industries such as businesses, sales, finance, and banking receive more bonuses in Estonia than in other professions.

Sales jobs are the most likely to offer bonuses in Estonia, with nearly half of all companies surveyed offering some sort of bonus structure to sales staff. The average bonus for a sales position is €1,530, although this number can vary considerably based on position and company. For example, entry-level sales jobs may only receive an average bonus of €400, while experienced sales managers could earn up to €4,000 in bonuses.

Bonuses for finance and banking professionals are also relatively common, with nearly 40% of companies surveyed offering some form of bonus to these employees. The average bonus for finance and banking employees is €1,700, although this number can vary widely depending on position and experience. For example, entry-level finance employees may only receive an average bonus of €500, while experienced bankers could earn up to €5,000 in bonuses.

Bonuses for other professions are less common, but can still be found in a variety of industries. The average bonus for these positions is €1,200, although this number can vary based on position and company.

For example, entry-level jobs in human resources or marketing may only receive an average bonus of €300, while experienced executives in these fields could earn up to €3,000 in bonuses.

Comparison of Bonuses based on Seniority Level in Estonia

Workers in Estonia receive several different bonuses based on their seniority level. The most common bonuses are for vacation, sick leave, and holiday pay.

Senior employees with 1-2 years of experience may have a vacation bonus of up to 2% of their salary. For 3-5 years of experience, the vacation bonus increases to 3%. After 5 years of experience, the vacation bonus becomes 4%.

In addition to the vacation bonuses, senior employees also receive bonuses for sick leave and holiday pay. For 1-2 years of experience, the sick leave bonus is 1% of the salary and the holiday pay bonus is 0.5% of the salary.

For 3-5 years of experience, the sick leave bonus increases to 2% of salary and the holiday pay bonus increases to 1% of salary. After 5 years of experience, the sick leave bonus becomes 3% of the salary and the holiday pay bonus becomes 2%

Furthermore, there are a few other types of bonuses that are given to senior employees in Estonia. These include a loyalty bonus, which is 1% of salary for each year of service; a performance bonus, which is up to 3% of salary; and a housing allowance, which is 5% of salary.

Pay for Top Professions in Estonia

Banking

Bank Branch Manager – 5,020 EUR
Teller – 1,020 EUR
Commercial Banker – 3,020 EUR
Investment Banker – 4,020 EUR

Law

Lawyer – 5,000 EUR
Legal Assistant – 2,500 EUR
Paralegal – 1,800 EUR
Solicitor – 3,800 EUR

Medicine and Healthcare

Doctor – 6,420 EUR
Dentist – 4,290 EUR
Nurse – 1,960 EUR
Pharmacist – 3,070 EUR
Physiotherapist- 2,040 EUR

Veterinary Medicine

Veterinarian- 2,950 EUR
Veterinary Assistant- 1,560 EUR
Veterinary Technician- 2,140 EUR

Business and Finance

CEO- 8,750 EUR
CFO – 5,950 EUR
Controller- 4,560 EUR
Auditor- 3,780 EUR

Computer Science and IT

Software Developer- 3,770 EUR
Database Administrator- 2,960 EUR
Network Engineer- 3,520 EUR
Web Developer- 2,840 EUR

City Salary Comparison in Estonia

Estonia’s capital city, Tallinn, is one of the most expensive cities in the country. The cost of living in Tallinn is nearly 30% higher than the national average.

As a result, workers in Tallinn earn 2,870 EUR per month, on average. This is nearly double the amount earned by workers in other parts of Estonia.

When comparing salaries between cities, it is important to consider the cost of living in each city. While Tallinn workers earn more money per month, they also have higher living expenses. As a result, their purchasing power is not as high as it is for workers in other parts of Estonia.

Estonia’s Standard Hourly Rate

Estonians earn an average of 16 EUR per hour as their hourly income. As a result, the typical Estonian earns around 16 EUR for every hour of labor. The average person in Estonia works 2,080 hours per year.

This means that the typical Estonian worker earns approximately 33,280 EUR each year before taxes.

Salary Comparison Between the Public and Private Sectors

Employees in Estonia’s public sector earn 5% more than their private-sector colleagues, on average, across all industries.

The average monthly gross salary in Estonia is €1,492, which is slightly more than the average of the OECD countries of €1,486. The average for public-sector employees is €1,572, while the average for private-sector employees is €1,488.

The largest difference between the two sectors is in education, where public-sector employees earn 18% more than those in the private sector. Other industries where public servants earn a premium include health and social work (10%), and information and communication (9%).

In contrast, there are a few industries where private-sector workers earn more than their counterparts in the public sector. The most notable examples are finance and insurance (-5%), and manufacturing (-4%).

Overall, the data suggest that public-sector workers in Estonia are paid relatively well compared to their private-sector counterparts. However, there is room for improvement in some industries, particularly finance and insurance.