Employers' representatives and the trade union confederation agreed a national minimum wage of €946 per month for 2026, up from €886 in 2025. The increase takes effect on 1 April 2026, not 1 January.
Why the April date matters
Minimum wage increases in Estonia have normally applied from the start of the calendar year. The 2026 agreement was reached later than usual, and 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.
If your payroll software was updated in December with a €946 figure effective from January, you have been overpaying and misdeclaring for three months. Check it.
What employers need to do
- Identify every employee currently paid below €946 gross for full-time work and prepare an amendment to their employment contract terms with effect from 1 April.
- Notify affected employees in writing. A change to the agreed salary requires the employee's consent, although raising pay to a statutory minimum is not a change an employee is likely to contest.
- Check pro-rata calculations for part-time employees, whose 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 that happen to have shared a value in the past. For 2026, the monthly base for the employer's minimum social tax obligation is €886, which produces a minimum monthly social tax payment of €292.38 per employee. That figure does not move to €946 in April - it is set separately in the state budget.
The hourly rate
Estonia sets both a monthly minimum and a minimum hourly rate. Employers paying by the hour should confirm the applicable hourly figure for the period rather than deriving it from the monthly amount, since the two are set as separate figures.
Practical effect on employer cost
For a full-time employee at the new minimum, the gross cost is €946, plus 33% social tax and 0.8% unemployment insurance on the employer side - roughly €1,266 per month in total employer cost, before any fringe benefits.
Frequently asked questions
What is Estonia's minimum wage in 2026?
€946 per 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.
General information, not tax advice
This article reflects Estonian law as it stands on the date shown. Rules change and individual circumstances differ - confirm your own position with us before acting.