9 Facts About Social Tax In Estonia

• Do I need to pay social tax if an employee is on unpaid leave?
• What is the minimum social tax obligation in 2025?

What kind of “beast” is social tax? Read about it in this article.

1. Social tax rate in Estonia – 33%.

2. Social tax is paid by the employer. The tax is calculated “on top of” the gross salary.

3. There is a minimum social tax obligation. In 2025, the minimum social tax obligation is equal to 270,60 euros (820 euros * 33%).

4. The obligation to pay the minimum amount of social tax lies with the employer at the workplace that is either the only one or considered the primary one. Whether the workplace is considered primary for the employee is usually determined by a written statement from the employee. If the employee has provided a statement requesting the application of the non-taxable income minimum (including in the amount of 0), the workplace is considered primary. It is the employer’s responsibility to inquire whether the employee works elsewhere under an employment contract and how taxes are paid.

5. The obligation to pay the minimum amount of social tax at the primary or sole workplace applies even if the employee works part-time and their gross salary is less than 820 euros per month.

6. Certificates of social tax payment from other workplaces can help the primary employer avoid paying excessive social tax. This is important in situations where an employee has multiple part-time jobs.

7. The payment of social tax in the amount of at least 270.60 euros per month is a mandatory condition for the commencement of health insurance coverage.

8. The obligation to pay social tax at the minimum required amount does not apply to working pensioners, students, one parent with children under 3 years old, one parent with three children under 19 years old, and certain others. For such employees, the employer can pay social tax based on the actual payment. Health insurance will remain valid even if the actual payment is less than 820 euros. It is worth mentioning that the employer must have documentary evidence that the employee is a pensioner (pension certificate), a student (student ID), a parent of minor children (birth certificates), etc.

9. The obligation to pay the minimum social tax applies even during unpaid leave. This means that if the employer grants the employee unpaid leave and the workplace is the primary or sole one, the employer must pay social tax for the employee in the amount of 270.60 euros per month.

These are just a few facts about social tax in Estonia. The nuances of the law are countless. Therefore, if your company has hired employees and payroll calculation and declaration are required, we recommend not delaying and seeking help from a professional.

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