The average monthly gross wage in Estonia in the third quarter of 2024 was 1 959 euros, up 8.1% year-on-year, but wage growth has slowed down and was reportedly higher in 2023, citing data from Statistics Estonia, reports Estonian media ERR.
The average salary, which often reflects more the income of a typical employee, was 1 620 euro compared to 1 500 euro in 3Q 2023.
The significant difference between the average salary and the median indicates potential income inequality, as high wage earners influence the rise in the average salary.
The sectoral analysis shows that the highest average monthly gross wages were in the information and communication sector (3 506 euro), financial and insurance activities (3 068 euro) and energy (2 540 euro).
On the other hand, the lowest wages were in accommodation and food services (1 285 euro), other services (1 311 euro) and real estate activities (1 366 euro).
Despite these differences, sectors such as healthcare and social work recorded the highest annual growth (10.6%), followed by education (9.6%), according to the agency.
However, despite the significant percentage increase, these sectors may still struggle to compete with high-wage sectors in absolute wages, which may affect their ability to attract and retain talent.
There are also regional wage differences. The highest average salaries were in Tallinn (2 307 euro), Harju County, which includes Tallinn (2 200 euro per month) and Tartu County (1 956 euro).
By contrast, the lowest salaries were in Valga County (1 452 euro), Võru County (1 477 euro) and Lääne County (1 485 euro).
Wage increases varied considerably, with the highest increase in Hiiuma (10.7%), followed by Tartu County (9.7%) and Ida-Viru County (9.1%).
The median salary further reflects these regional differences, with Tallinn having a median salary of 1 900 euro per month, followed by the capital Harju County with 1 821 euro and Tartu County with 1 661 euro.
By contrast, the lowest median salaries were in Võru (1 252 euro), Valga (1 271 euro) and Ida-Viru (1 272 euro) counties, according to Statistics Estonia.
Although the report highlights the growth rates, it does not take inflation-adjusted figures into account.
As the Consumer Price Index (CPI) in Estonia increased by 4.1% in the year to October, a nominal wage increase of 8.1% does not imply a real increase in purchasing power, especially for workers in low-wage sectors such as accommodation and food services.