Estonia Sees Significant Salary Growth in Early 2024, Driven by Key Sectors

In the first quarter of 2024, Estonia experienced a notable increase in its average gross monthly salary, which rose by 8.8% to reach €1,894. This growth reflects broader trends in wage development across the euro area, where negotiated wage growth has been on the rise.

Tallinn, the capital city, recorded the highest wages, particularly in fields such as information and communication. These sectors have consistently offered competitive salaries, attracting top talent and driving economic growth.

The most significant growth in salaries was observed in the human health and social work activities sector. This increase highlights the growing importance and recognition of these fields, especially in the wake of ongoing global health challenges.

Why this matters: This increase in Estonia's average gross monthly salary has broader implications for the country's economic growth and competitiveness in the euro area. As wages continue to rise, it may lead to increased consumer spending, economic expansion, and potential changes in the labor market.

Despite the overall positive trend, wage pressures have moderated since 2023. However, wage growth is expected to remain elevated throughout 2024, albeit with some fluctuations. The wage adjustment process remains staggered, with workers still recouping real wage losses from past price shocks.

In Estonia, the average monthly net salary ranges from €1,000 to €2,400, with significant variations depending on job positions. Men, on average, earn 22.3% more than women, reflecting persistent gender wage gaps.

The salary range in Estonia spans from €928 for lower salaries to €2,535 for higher salaries, including bonuses. These figures provide a comprehensive view of the economic landscape and the earning potential within the country.

As Estonia continues to navigate its economic growth, the increase in average salaries is a positive indicator of the country's resilience and potential for future prosperity. The focus on key sectors such as information and communication, along with human health and social work, underscores the strategic importance of these fields in driving economic development.

Key Takeaways

• Estonia's average gross monthly salary rose 8.8% to €1,894 in Q1 2024.
• Tallinn's info and communication sectors offer highest wages, driving economic growth.
• Human health and social work activities saw the largest salary growth.
• Wage growth is expected to remain elevated in 2024, despite moderating pressures.
• Gender wage gaps persist, with men earning 22.3% more than women on average.