At-risk-of-poverty rate down, absolute poverty rate up in Estonia
According to Statistics Estonia, 19.4% of Estonia’s population lived at risk of poverty and 3.3% in absolute poverty in 2024. Compared with 2023, the share of people living at risk of poverty fell by 0.8 percentage points. The share of people living in absolute poverty, however, increased by 0.6 percentage points.
Epp Remmelg, leading analyst at Statistics Estonia, said that the at-risk-of-poverty rate reflects income inequality in a country. “People at risk of poverty are not living in outright deprivation, but they cannot afford the standard of living that is considered normal in society,” the analyst noted.
In 2024, close to 263,200 people lived at risk of poverty, which is nearly 11,600 fewer than in 2023. Their net monthly income, taking into account household composition, i.e. the equivalised disposable income, was less than €858, which is the at-risk-of-poverty threshold in 2024.
The at-risk-of-poverty rate declined the most among the elderly
Remmelg pointed out that, over the years, the at-risk-of-poverty rate has been highest among the elderly living alone, as their equivalised disposable income that takes into account the composition of the household is the lowest.
“Four years ago, the at-risk-of-poverty rate among the elderly began to decrease, and this continued in 2024. Of people aged 65 and over living alone, 62% were at risk of poverty in 2024, down by 8.7 percentage points from the year before. This is the lowest figure in the last 13 years,” she said, adding that the positive trend is due to the increasing duration of working life of our elderly and the growing average old-age pension, which has been moving closer to the average income year by year.
The biggest rise in the at-risk-of-poverty rate was seen among lone parent households
In 2024, the at-risk-of-poverty rate increased the most – by 7.4 percentage points – among lone parent households. “In 2023, greater child benefits lifted a large number of lone parent families out being of at risk of poverty. In 2024, the allowances for families with many children decreased, as did the employment rate. The latter led to an increase in the at-risk-of-poverty rate among both lone parent families and couples with one child,” Remmelg stated. Last year, 38% of lone parent families and 14% of couples with one child as well as those with three or more children were at risk of poverty.
The share of people living at risk of poverty varies by region
Last year, the share of people living at risk of poverty was the highest in Ida-Viru county (33%), where it was approximately twice as high as in Hiiu (14.8%), Järva (15.5%), Harju (16.5%), and Rapla (16.7%) counties. The at-risk-of-poverty rate decreased in most counties. “The largest drops occurred in Lääne-Viru, Saare, and Võru counties. The at-risk-of-poverty rate increased slightly, by one percentage point, in Harju county, including Tallinn. In Rapla county, the at-risk-of-poverty rate was up by 2.6 percentage points, and a 1.2 percentage point increase was seen in Jõgeva county,” the leading analyst said.
The share of people living in absolute poverty rose
Absolute poverty rate indicates the share of the population who are not able to meet their basic needs. In 2024, their net monthly income, taking into account household composition, was less than €346, i.e. below the estimated subsistence minimum. Last year, nearly 44,400 people lived in absolute poverty, which is 8,000 more than the year before.
“The risk of falling into absolute poverty increases when the main breadwinner of the family loses their job,” Remmelg said. The biggest rise in the absolute poverty rate in 2024 was recorded among lone parent households and couples with one child. 11% of lone parent households and 4.6% of couples with one child were living in absolute poverty last year. In 2024, the absolute poverty rate fell by 0.7 percentage points among households with no children and rose by 1.8 percentage points among households with children.
“The sharp rise in prices three years ago also led to an increase in absolute poverty. In recent years, the absolute poverty rate has remained largely unchanged,” Remmelg pointed out. In 2024, the equivalised disposable income that takes into account the composition of the household grew by 7% on average. Income from wages and salaries increased by the same percentage. Income from pensions rose by 10%, while income from child benefits fell by 17%. “The Estonian residents' income from property has also grown steadily, accounting for nearly 5% of total income last year,” Remmelg added.
The number of people who cannot afford to participate in leisure activities on a regular basis has grown
The share of people living in self-perceived deprivation, i.e. people who could not afford various items commonly available in the society, remained at the same level as last year. 7.7% of the population, or nearly 94,900 people, felt deprived in 2025.
Nearly one in five (19.1%) lone parent households and around one in eight (12%) people aged 65 or over living alone experienced deprivation in 2025.
Remmelg stated that, in 2025, the number of people who could not afford to participate regularly in a paid leisure activity grew the most. “Approximately one in eight people could not afford it. One in five people were unable to replace their worn-out furniture, one in four people could not afford to go on a week-long holiday away from home, even if it was just camping," said Remmelg, adding that more than one in three people were unable to face unexpected expenses in the amount of €807.
Ministry of Social Affairs: the aim is to help the most vulnerable groups
The Ministry of Social Affairs is of the opinion that measures should be directed primarily to where the need for assistance is greatest. “Our goal is for people in Estonia to live a dignified life – this means that the needs of every child, elderly person, and person with special needs are met and that help arrives at the right time and in the right place. Policy changes in recent years have yielded the first positive results and the economic situation of the elderly living alone has improved significantly, showing that the steps taken so far have been effective. However, we cannot slow down, since reducing poverty requires consistent effort,” said Kati Nõlvak, head of economic subsistence at the Ministry of Social Affairs.
The livelihood of the elderly has improved thanks to pension increases and the nursing care reform. “While in 2022, people themselves covered 78% of nursing home costs, by 2024 this had fallen to 52%. The reform has reduced the financial burden on families and increased the availability of services,” Nõlvak noted.
In Estonia, a universal system of family allowances is in use, alongside which there is an increasing emphasis on services that support vulnerable children and families. According to the latest data, the share of child benefits in the total income of households has decreased somewhat, but the actual amount of benefits is still higher than before. “This means that benefits have not declined, but people’s other incomes – such as wages and salaries – have grown faster,” Nõlvak explained.
In addition, we have improved the rehabilitation system for children with special needs and the support system for foster families. Starting next year, parents who share the parental benefit will be able to earn additional income without having their benefit reduced,” she added.
When other safety nets are insufficient, subsistence benefit is a measure of last resort. “Absolute poverty statistics show that there are more people who qualify for the benefit than those who apply for it. Therefore, we are simplifying the application process and raising the subsistence level. The state is planning to increase the subsistence benefit from next year once the state budget strategy currently being debated in parliament is approved, so that the benefit keeps pace with the rising cost of living,” said Nõlvak.
At-risk-of-poverty rate is the share of persons with an equivalised yearly disposable income lower than the at-risk-of poverty threshold. The at-risk-of-poverty threshold is 60% of the median equivalised yearly disposable income of household members.
Equivalised disposable income is the total household income divided by the sum of equivalence scales of all household members.
Absolute poverty rate is the share of persons whose equivalised disposable income is below the absolute poverty threshold.
Deprivation rate is the share of persons who cannot afford at least 5 of the 13 items: 1) to pay rent or utility bills, 2) to keep their home adequately warm, 3) to face unexpected expenses, 4) to eat meat, fish or a protein equivalent every second day, 5) a one-week holiday away from home, 6) a car, 7) to replace furniture when worn out or damaged, 8) to replace worn-out clothes with new ones, 9) to have at least two pairs of outdoor shoes in good condition that are necessary in our climate, 10) to spend a small amount of money each week on oneself, 11) to participate regularly in a leisure activity that costs money, 12) to get together with friends or family for a drink or meal at least once a month, or 13) to have an internet connection at home for personal use when needed.
The estimations are based on the data of the 2025 Estonian Social Survey. The main representative of public interest for this statistical activity is the Ministry of Social Affairs. 4,980 households participated in the survey. The survey collects data about yearly income, which is why the 2025 survey asked respondents about the income in 2024. The yearly income is necessary for calculating the indicators of poverty and inequality. The social survey (called EU-SILC) is conducted in all European Union countries on the basis of a harmonised methodology.
A percentage is a part of a whole; a percentage value is indicated by the percent sign (%). A percentage point is the difference between percentages.
When using Statistics Estonia’s data and graphs, please indicate the source.
More information about the methodology used to measure deprivation can be found here.
More detailed data have been published in the statistical database.
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Susann Kivi
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Statistics Estonia
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