For employers: payroll cost and taxes
An employee's real cost is a third higher than the gross salary, and declarations have fixed dates. This page gathers the employer's everyday calculators and deadlines.
How much does an employee really cost?
On top of the gross salary the employer pays social tax 33% and unemployment insurance 0.8% – the total cost is therefore gross × 1.338. For example, an employee with a €2,000 gross salary costs the employer about €2,676 a month. The salary calculator shows the exact breakdown, including the employee's net pay.Tax calendar – deadlines
| Declaration / payment | Deadline |
|---|---|
| TSD (income and social tax, withholdings) – filing and payment | 10th of each month |
| KMD (VAT return) – filing and payment | 20th of each month |
| Sole proprietor social tax advance payments | 15 Jun, 15 Sep, 15 Dec, 15 Mar |
| Personal income tax return | in spring, in e-MTA |
Holidays, sick days and payouts
The employer pays 70% of the average wage for sick days 4–8 (sick pay calculator) and holiday pay based on the previous 6 months' average (holiday pay calculator). When distributing profit, compare the tax burden of salary vs dividends with the dividend calculator.Related calculators
- Salary calculator (Estonia)
- Holiday pay calculator
- Sick pay calculator (Estonia)
- Business days calculator
- Dividend calculator (Estonia)
- VAT calculator (Estonia)
- Sole proprietor (FIE) tax calculator
Read more
Source: Estonian Tax Board – tax rates ↗ · Source: Estonian Tax Board ↗