põhipalka

Põhipalk is the fixed, contractually defined portion of an employee’s wage. It is the base amount paid regularly (usually monthly) and forms the core of compensation before any variable components such as performance bonuses, overtime pay, or allowances are added. The term is used in Estonian employment and HR contexts and is commonly found in employment contracts and collective agreements.

The base salary is typically stated as a gross amount, meaning before income tax and social security contributions are deducted. It is distinct from additional pay, which includes bonuses, incentive pay, overtime, and benefits. The base salary can be influenced by a job’s grade, required qualifications, experience, and market conditions, and it may be adjusted annually or when an employee assumes a different position or level.

In Estonia, base salary is often governed by collective agreements in certain sectors and by employer policies. While there is a legal minimum wage, the põhipalk is usually set higher, with the minimum wage serving as a wage floor for all employees. The base salary serves as the reference for calculating statutory contributions, retirement benefits, and some other entitlements, and it provides the stable core of an employee’s earnings.

Related concepts include minimum wage, gross salary and net salary, and other components of pay such as lisatasu (supplementary pay) and tulemustasu (performance pay). Understanding põhipalk helps clarify how total compensation is structured in Estonian workplaces.