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Estonian Minimum Wage Delivers Lowest EU Purchasing Power
New Eurostat data for January 2026 reveals that Estonia's minimum wage provides the weakest purchasing power in the entire European Union, with its 886 Purchasing Power Standard (PPS) falling behind Latvia and significantly trailing Germany's leading 2157 PPS.
- —Estonia's national minimum wage, while not the lowest in the EU in nominal euro terms, ranks last in the European Union when adjusted for the cost of living, according to Eurostat data as of January 1, 2026.
- —In 2026, Estonia's minimum wage was 886 Purchasing Power Standard (PPS) per month, placing it below Latvia and significantly behind Germany's 2157 PPS.
- —Compared to 2025, Estonia's position has worsened, as Slovakia, Bulgaria, and the Czech Republic have surpassed the 1000 PPS threshold, leaving Estonia and Latvia as the only countries below this mark.
- —This indicates that despite nominal increases, the real-world purchasing power of Estonia's minimum wage is the weakest among EU member states.
Recap
The data exposes a critical weakness in Estonia's economy, where nominal wage growth fails to translate into real-world buying power for its lowest earners. This positions the country as an outlier, falling behind regional peers and signaling potential social and economic pressures from a widening gap between pay and the cost of living.