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 20%
Social security tax 33%
Unemployment tax paid by the employee 0.8%
Employee to receive
Total taxes
Total cost for the employer
1 000 EUR
170 EUR
16 EUR (1.6% x 1 000)
814 EUR
162,8 EUR
330 EUR
8 EUR (0.8% x 1 000)
821,2 EUR (1 000 – 162,8 – 16)
516,8 EUR (162,8 + 16 + 330 + 8)
1 338 EUR (1 000 + 330 + 8)
From the total cost 1338 EUR - 61% (821,2 EUR) is received by the employee and 39% (516,8 EUR) is paid in taxes.