Estonia Salary Calculator 2026

How net pay is worked out in Estonia

From the gross salary agreed in your employment contract, the employer has to withhold three payments before paying you: unemployment insurance, the funded pension (II pillar) contribution and income tax. These are declared to the Estonian Tax and Customs Board (EMTA) on the monthly TSD return. What is left is the net pay that lands in your account.

Unemployment insurance and the II pillar

Unemployment insurance is 1.6% of gross pay and goes to the Unemployment Insurance Fund (Töötukassa). The II pillar contribution is 2% by default, but you can raise it to 4% or 6% or pause payments – changes take effect on 1 January, 1 May or 1 September. Both are deducted before income tax, so they also reduce your taxable income.

Income tax and the basic exemption

Income tax is 22%. Since 2026 the so-called tax hump is gone: the basic exemption (maksuvaba tulu) is 700 € a month (8,400 € a year) for everyone, whatever they earn, and 776 € a month for people of pensionable age. Income tax is therefore (gross − unemployment insurance − II pillar − 700) × 22%. To have the exemption applied you need to submit an application to your employer; if you have several jobs, it is best to use it at just one of them.

What the employer pays on top

On top of the gross salary the employer pays 33% social tax, which funds state pension and health insurance, plus 0.8% unemployment insurance. The total cost to the employer is therefore 1.338 times the gross salary. None of this reduces the employee's net pay.

Worked example: 2,250 € gross, II pillar at 2%

• Unemployment insurance 1.6%: 36.00 €
• II pillar 2%: 45.00 €
• Income tax: (2,250 − 36 − 45 − 700) × 22% = 323.18 €
• Net pay: 1,845.82 €
• Total cost to employer: 2,250 + 742.50 + 18.00 = 3,010.50 €

The minimum wage of 946 €, in force from 1 April 2026, gives 865.31 € take-home and costs the employer 1,265.75 €.

What the calculator leaves out

The calculation assumes the basic exemption has been claimed with your employer. It does not account for the higher exemption at pensionable age, the monthly minimum social tax obligation (on 886 €, i.e. 292.38 €), fringe benefits, holiday pay or sickness benefits.