Social tax

Social tax is a tax paid by the employer to the state, which finances Estonia’s social protection system, mainly pensions and healthcare. The social tax rate is 33% of gross salary.

Social tax Distribution

Social tax is internally divided into two parts:

• 20% goes to pension insurance
• 13% goes to health insurance

Example

If an employee’s gross salary is 1500 euros, then the employer pays an additional 495 euros (33% × 1500) in social tax to the state. The employee receives their salary minus income tax, but they don’t see the social tax in their salary, as it is paid by the employer.

Minimum Social tax 2025

Even if the salary is very small, the employer must pay at least the minimum social tax if they have an employment contract with an employee. The minimum social tax is always calculated based on the previous year’s minimum wage.

In 2025, the minimum social tax is 270.60 euros (33% × 820) per calendar month.

Social tax entitles one to healthcare services and forms the basis for future pension.

Tax Declaration

The taxation period is a calendar month. Tax declaration TSD must be submitted to the Tax and Customs Board by the 10th day of the month following the payments or expenses either in the e-services environment e-MTA or at the Tax and Customs Board service office.