Estonia salary calculator 2026
Net salary is what reaches your bank account after income tax, unemployment insurance and the funded pension are deducted. Social tax is paid by the employer on top of the gross figure, so it does not reduce your net pay.
- Gross salary
- €1,600
- Basic exemption
- €700
- Income tax
- −€185
- Unemployment insurance
- −€26
- Funded pension (2nd pillar)
- −€32
- Total employer cost
- €2,141
Employers additionally pay 33% social tax — this doesn't affect your take-home pay, but is part of their total cost.
Rates and thresholds
- Income tax
- 22%
- Basic exemption
- €700/month
- Social tax (employer)
- 33%
- Unemployment insurance
- 1.6% employee · 0.8% employer
- Funded pension
- 0, 2, 4 or 6%
- Social tax minimum base
- €886
How is net salary calculated in Estonia?
Unemployment insurance at 1.6% and the funded pension at 2% come off the gross first. The basic exemption is then subtracted, and income tax of 22% is charged on what remains. On €1600 gross, €1357.07 reaches the account.
What is the basic exemption in Estonia in 2026?
From 2026 the basic exemption is a flat €700 a month regardless of income — the earlier income-dependent taper was abolished. At retirement age it is €776. It applies only if you file a written application with one employer.
What is the difference between gross and net salary?
Gross salary is the figure in the employment contract, before tax. Net salary is what remains after income tax, unemployment insurance and the funded pension. Employer cost is a third number: gross plus social tax and the employer's own insurance contribution.
What does an employee cost the employer?
On top of the gross the employer pays social tax at 33% and unemployment insurance at 0.8%. A €1600 salary costs the employer €2140.80 a month. Social tax is charged on a monthly minimum base of €886, even for part-time work.
What changed in Estonian taxes in 2026?
From 2026 the basic exemption is a flat €700 a month for everyone, regardless of income. That abolishes the so-called tax hump, where the exemption tapered away as pay rose. The income tax rate is 22%.
Related calculators
- Employer cost calculator
- Gross salary calculator
- Social tax calculator
- Income tax calculator
- Holiday pay calculator
- Sick pay calculator