Share of Envelope Wage Recipients in Estonia Remains Stable
According to a survey, in 2025, 4% of Estonian employees regularly or occasionally received envelope wages, the same as in 2024 and down from 5% in 2022.
The prevalence of undeclared wages in Estonia is holding steady, according to a survey commissioned by the Tax and Customs Board and conducted by Turu-uuringute AS. In 2025, 4% of salaried workers admitted to receiving envelope wages regularly or occasionally. This matches the figure for 2024, while in 2022 it was 5%.
The main reasons for agreeing to receive undeclared pay are twofold: the worker themselves does not want to pay taxes to the Estonian state, or the employer did not offer an official payment. 23% of respondents said they know someone in their circle who receives envelope wages – compared to 24% in 2024 and 29% in 2019.
Marju Vahing-Mõttus, head of the Tax Audit Department, noted that the highest risk persists in sectors with high cash turnover and short-term employment relationships: particularly construction, accommodation and food services, and manufacturing. During the summer season, authorities focus on seasonal work and check work registration and wage declarations.
The survey included questions about rental income for the first time. Last year, 4% of respondents earned income from renting out property, most often apartments, with annual income ranging from €1,200 to €8,000. 90% of landlords declared this income, but one in ten knows someone who did not.
Illegal alcohol consumption remains negligible, with only 1% of respondents purchasing it. Smuggled cigarette use is declining, but 32% of e-cigarette users had used illegal disposable devices, mainly among younger consumers. The survey was conducted in March 2025 with 1,210 Estonian residents aged 18–74.
