Payroll taxation in Estonia

Employee's payroll calculation

Gross salary

Tax exempt income

Unemployment tax paid by the employer 1.6%

Taxable income

Income tax 22%

Social security tax 33%

Unemployment tax paid by the employee 0.8%

Employee to receive

Total taxes

Total cost for the employer

2 000 EUR

645 EUR

32 EUR (1.6% x 2 000)

1346 EUR

296.2 EUR

660 EUR

16 EUR (0.8% x 2 000)

1671.8 EUR (2 000 – 296.2 – 32)

1004.2 EUR (296.2 + 32 + 660 + 16)

2676 EUR (2 000 + 660 + 16)


From the total cost 2676 EUR - 62.47% (1671.8 EUR) is received by the employee and 37.53% (1004.2 EUR) is paid in taxes.