In 2024, Estonia experienced a remarkable rise in wages, reflecting significant economic developments across various sectors. The median monthly wage soared to €1,628, up
8.5% from €1,501 in 2023, showcasing the nation’s growing economy. Similarly, the average monthly gross wage rose to €1,981, indicating an
8.1% increase compared to the previous year. By the end of 2024, this average further climbed to €2,062, emphasizing continued growth at an annual rate of
8.3%. This article explores the factors behind these wage increases, regional differences, and variations across industries.

Estonia

Key Takeaways

  • Estonia's median monthly wage surged to €1,628 in 2024, reflecting an
    8.5% increase from the previous year.
  • The information and communication sector leads with the highest average wages at €3,484, while accommodation and food service sectors remain the lowest at €1,264.
  • Despite significant wage growth, the pace has slowed down compared to previous years, indicating a potential shift in the labor market dynamics.

Overview of Wage Increases and Economic Impact

In 2024, Estonia experienced a notable wage increase, with the median monthly wage rising to €1,628, marking an
8.5% increase from €1,501 in
2023. Simultaneously, the average monthly gross wage increased to €1,981, a rise of
8.1% compared to the previous year. By the fourth quarter, the average monthly gross wage further climbed to €2,062, showing an
8.3% increase year-on-year. This growth indicates that while more employees are earning higher wages, the acceleration of wage increases has moderated compared to recent years. In terms of regional wage variations, Tallinn topped the list with an average gross wage of €2,325, followed by Harju at €2,218 and Tartu at €1,995. Hiiu and Ida-Viru regions recorded the most substantial percentage growths at
9.9% and
9.7%, respectively. The information and communication sector boasted the highest average wages at €3,484, with finance and insurance close behind at €3,127. In contrast, the accommodation and food service sector remained at the bottom with average wages of €1,264. Moreover, the human health and social work sector led the wage growth, reaching an impressive increase of 1

1.9%. Notably, approximately 17% of Estonia’s workforce is engaged in manufacturing, followed by significant employment in wholesale and retail trade, education, and health and social services.

Sector-Specific Wage Growth and Regional Variations

In 2024, Estonia experienced diverse wage growth across various sectors and regions. Despite the overall rise, the pace of increase has moderated. The average gross wage reached €2,062 by the end of the fourth quarter. Tallinn claimed the highest wages, but Hiiu and Ida-Viru outsized their gains in percentage terms. Sectors like information and communication led in wages, while the accommodation and food service sector lagged significantly. Furthermore, the human health and social work sector set the pace for wage increases, benefiting from a significant shift in demand and workforce recruitment strategies. With 17% of the workforce employed in manufacturing, this sector remains vital to Estonia’s economy, indicating a strong foundation for future wage growth.