Absence Pay Deduction
Calculate the gross pay reduction for unpaid absence hours.
Salary & Taxes Calculator
Calculate net pay, employer cost, and full tax breakdown for Estonian salaries.
Enter a salary amount and click Calculate.
How it works?
This calculator computes the full Estonian payroll tax breakdown. Enter gross salary, desired net pay, or total employer cost — the calculator converts the other values automatically.
Employer cost = gross + social tax (33%) + employer unemployment insurance (0.8% of gross).
Net salary = gross − funded pension (II pillar, 2/4/6%) − employee unemployment insurance (1.6%) − income tax (22% on taxable income).
Taxable income = gross − funded pension − employee UI − tax-free allowance (700 EUR/month general; 776 EUR/month for old-age pensioners).
From 2026 the general allowance is a fixed 700 EUR/month — it no longer decreases with higher income. Old-age and early-retirement pensioners are exempt from the employee 1.6% UI contribution; employer UI still applies. When solving from net or employer cost, the calculator uses binary search.
Frequently asked questions
What is the basic tax-free allowance in Estonia?
The general tax-free allowance is 700 EUR per month (8,400 EUR per year). From 2026 it is a fixed amount — it no longer decreases with higher income. Old-age pensioners receive a higher allowance of 776 EUR per month (9,312 EUR per year). You can adjust the allowance amount in the options panel.
What is the funded pension (II pillar)?
The second pension pillar (kogumispension) is a mandatory funded pension scheme in Estonia. Employees contribute 2% of gross salary (optionally 4% or 6% to earn a higher state co-contribution). The contribution reduces your taxable income.
How is employer cost calculated?
The total cost to the employer is gross salary plus social tax (33%) plus employer unemployment insurance (0.8%). For a 5,200 EUR gross salary, the employer pays 6,957.60 EUR in total.
Are old-age pensioners taxed differently?
Yes. Use the pension status selector in the options panel. Old-age, early-retirement, and flexible old-age pension holders are exempt from the employee UI contribution (1.6%), but employer UI (0.8%) still applies. Special-conditions pension (soodustingimustel) holders pay normal UI rates. All pension holders receive a higher tax-free allowance (776 EUR/month vs 700 EUR/month).
What is the minimum social tax base?
Employers in Estonia must pay social tax on at least the minimum social tax base (886 EUR/month), even if the actual gross salary is lower. This applies to standard employment contracts. Enable this option for accurate results when the gross salary is below this threshold.