Sapita

Employee cost calculator

See the net pay and the total employer cost of a gross monthly salary in Estonia, one line at a time.

The salary before any deduction, with cents.
Is the employee in the II pillar?The funded pension. Yes adds 2% of gross to the employee's deductions.

How this is worked out

  1. Unemployment insurance. The employee pays 1.6% of gross and the employer pays 0.8%.
  2. Social tax. The employer pays 33% of the gross salary.
  3. Income tax. 22% of the gross less the employee's unemployment insurance, less the II pillar contribution when the employee is in it, less the basic exemption of €700.00 a month.
  4. Employer cost. The gross plus the employer's social tax and unemployment insurance.

Example, from EMTA's 2026 payroll guide: a gross salary of 2,100.00 with the II pillar. The II pillar is 42.00, the employee's unemployment insurance 33.60, and income tax (2,100.00 − 42.00 − 33.60 − 700.00) × 22% = 291.37, so net pay is 1,733.03. The employer pays social tax of 693.00 and unemployment insurance of 16.80.

Salary costs in Estonia, in short

The employer pays social tax of 33% on top of the gross salary, and pays unemployment insurance too. The employee pays unemployment insurance, and can choose the II pillar. Income tax is withheld from the pay, so the net pay is what reaches the bank account.

Holiday pay, benefits and other payroll costs are not in this calculator. It works out one month of a salary for one employee.

Read the guide

Questions

What is the II pillar?
The II pillar is a funded pension. If the employee is in it, 2% of the gross salary goes into their pension account, and the state adds 4% from social tax. A higher rate of 4% or 6% needs a separate application, so it is not included here.
What does the employer cost include?
The gross salary, plus the employer social tax of 33% and the employer unemployment premium of 0.8%. It does not include holiday pay, benefits or accounting fees.
Does the II pillar change the income tax?
Yes. The 2% II pillar contribution comes off the gross before income tax, together with the unemployment insurance. EMTA's 2026 example for a gross of 2,100.00 with the II pillar withholds (2,100.00 − 42.00 − 33.60 − 700.00) × 22% = 291.37 of income tax.
Does the calculator assume the basic exemption?
Yes. It applies the €700 monthly basic exemption from this employer, which is the usual case. The employee asks the employer to apply it, and it can be set to zero, which means more tax is withheld.

Sapita is software and education, not accounting or tax advice. Check the official rules before you file.

All free tools