Estonia Payroll Changes - 2026

Rate/Percentage changes affecting payroll

• Social tax minimum obligation
  • The monthly basis increases to €886 (from €820 in 2025).
  • Minimum social tax payment increases to €292.38 per month.
• Funded pension contribution
  • Employees can choose a contribution rate of 2%, 4%, or 6% of gross salary.
  • Default rate remains 2%.
  • Employees can change their rate once a year (application deadline November 30) to take effect the following January.

National adjustments

• Income tax
  • Tax-free minimum (basic exemption) increases to €700 per month.