Employers' representatives and the trade union confederation agreed a national minimum wage of €946 a month for 2026, up from €886 in 2025. The increase takes effect on 1 April 2026, not 1 January.
Why the April date matters
The April date matters because Estonian minimum wage increases have normally applied from the start of the calendar year. The 2026 agreement was reached later than usual, so the parties set an April start. That means the first quarter of 2026 runs on the €886 figure, and the new rate applies from the April payroll onwards.
Say your payroll software was updated in December with a €946 figure from January. Then you have been overpaying and declaring the wrong amounts for three months, so check the settings.
What employers need to do
- Identify every employee currently paid below €946 gross for full-time work. Prepare an amendment to their employment contract with effect from 1 April.
- Tell affected employees in writing. A change to the agreed salary needs the employee's consent, although few employees are likely to object to a raise to the legal minimum.
- Check pro-rata calculations for part-time employees. Their minimum is proportional to their agreed working time.
- Review any pay structures built around the minimum, such as commission floors or apprentice rates.
The relationship with social tax
The minimum wage and the social tax minimum base are two different numbers, even though they have had the same value in the past. For 2026, the monthly base for the employer's minimum social tax obligation is €886. That produces a minimum monthly social tax payment of €292.38 per employee. The figure does not move to €946 in April, because it is set separately in the state budget.
The hourly rate
Estonia sets both a monthly minimum and a minimum hourly rate. If you pay by the hour, check the hourly figure for the period rather than working it out from the monthly amount. The two are set as separate figures.
Practical effect on employer cost
For a full-time employee at the new minimum, the gross pay is €946. On top of that, the employer pays 33% social tax and 0.8% unemployment insurance. That comes to roughly €1,266 a month in total employer cost, before any fringe benefits.
Frequently asked questions
What is Estonia's minimum wage in 2026?
€946 a month gross for full-time work, from 1 April 2026. Until 31 March 2026 the previous figure of €886 applies.
Why does the increase start in April?
The agreement between employers and unions was reached later than usual, and the parties set 1 April 2026 as the effective date rather than 1 January.
Does the social tax minimum base also rise to €946?
No. The minimum monthly base for the employer's social tax obligation is €886 for 2026, set separately from the minimum wage.
TagsEstonian minimum wage 2026minimum wage 946 eurosminimum hourly rate Estoniastatutory pay Estonia
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