Remuneration payable to a member of the management board
With an A1/E101 certificate, individuals working outside their home country can demonstrate coverage under the social insurance legislation of the country they are working in. This includes benefits such as old age pension, child benefit, and unemployment. All European Union countries utilize A1/E101 certificates. To avoid paying social security tax in Estonia, you must present your A1/E101 certificate to the Estonian tax authorities.
Remuneration payable to a member of the management board with A1/E101
Gross salary
Tax exempt income
Taxable income
Income tax 20%
Social security tax to be paid in Estonia
Employee to receive
Total taxes
Total cost for the employer
1 000 EUR
0 EUR
1 000 EUR
200 EUR
0 EUR
800 EUR (1 000 – 200)
200 EUR
1 000 EUR
Board member's salary to resident or person without A1
Gross salary
Tax exempt income
Taxable income
Income tax 20%
Social security tax 33%
Employee to receive
Total taxes
Total cost for the employer
1 000 EUR
0 EUR
1 000 EUR
200 EUR
330 EUR
800 EUR (1 000 – 200)
530 EUR (200 + 330)
1 330 EUR (1 000 + 330)
From the total cost 1 330 EUR - 60% (800) is received by the employee and 40% (533 EUR) is paid in taxes.