Social tax

Social tax is paid by the employer, not deducted from the person’s pay. An Estonian company pays it on salary and on board member fees at 33% (source: emta.ee, checked 3 Oct 2026) of the gross amount, and declares it on form TSD for the month of payment. It funds the state pension and health insurance systems.

For employees, social tax is generally charged on at least a minimum monthly base of €886 per month (source: emta.ee, checked 3 Oct 2026), even if the salary is lower, with some exceptions. Dividends are not subject to social tax: the company pays corporate income tax on distributions on them instead.

Whether Estonian social tax applies to someone who lives abroad can depend on the social security rules between countries, such as an A1 certificate, which is used within the EU, the EEA and Switzerland. Read Dividends, board member fees or salary, then work through the numbers in the payout calculator.