What comes off the gross salary in Estonia: 22% income tax, unemployment insurance and the second-pillar pension. Rates, order of calculation and a net pay table.
Gross pay is the figure in the contract, not what lands in your account. Three deductions sit in between: unemployment insurance, the second-pillar pension and income tax. They are applied in a set order, and income tax comes last — on an already reduced amount.
| Deduction | Rate | Charged on |
|---|---|---|
| Unemployment insurance | 1.6% | the full gross salary |
| Second-pillar pension | 2% · 4% · 6% | the full gross salary, you pick the rate |
| Income tax | 22% | gross minus the two deductions above and minus the tax-free amount |
Income tax is not charged on the whole gross. Unemployment insurance and the pension contribution come off first, then the tax-free amount of €700, and only the remainder is taxed at 22%. That is why you cannot get net pay by multiplying gross by a single percentage.
The table uses a pension rate of 2%. At 4% or 6% you keep correspondingly less — the calculator gives the exact figure.
| Gross | Unemployment | Pension | Income tax | Net |
|---|---|---|---|---|
| €900 | €14.40 | €18.00 | €36.87 | €830.73 |
| €1,200 | €19.20 | €24.00 | €100.50 | €1,056.30 |
| €1,500 | €24.00 | €30.00 | €164.12 | €1,281.88 |
| €2,000 | €32.00 | €40.00 | €270.16 | €1,657.84 |
| €2,500 | €40.00 | €50.00 | €376.20 | €2,033.80 |
| €3,500 | €56.00 | €70.00 | €588.28 | €2,785.72 |
From 2026 the tax-free amount is €700 a month and no longer depends on how much you earn — it used to disappear at higher salaries. This is the amount that reduces the income subject to tax. what changed in 2026 and how much more you keep.
On top of the gross salary the employer pays social tax at 33% and unemployment insurance at 0.8%. These are not deducted from your pay — they are added above it. what an employee actually costs the employer.
All labour taxes together and what they cost the employer — at length in the article: labour taxes and employer cost 2026.
Three deductions come off the employee: unemployment insurance at 1.6%, the pension contribution at 2%, 4% or 6%, and income tax at 22%. Social tax is paid by the employer separately and is not withheld from your pay.
Because income tax is calculated only after unemployment insurance, the pension contribution and the tax-free amount have been subtracted. On a gross of €1,500 you keep €1,282.
No. Social tax at 33% is an employer cost on top of the gross. It does not reduce your net pay, but it raises the cost of employing you.
You can choose the rate: 2%, 4% or 6%. People who left the second pillar do not pay it — pick that option in the calculator.
You can select 2024, 2025 and 2026. In 2026 income tax is 22% and the tax-free amount of €700 is the same for everyone.