Minimum wage
In 2022, the gross minimum wage rate is 654.00 euros per month and 3.86 euros per hour .
The net payment depends on the following conditions — – whether the employee has stage 2 pension insurance – whether or not the employee has submitted an application to the employer for accounting for the minimum non-taxable income tax (500 euros or less). Variants
1. The employee has a pension insurance of the 2nd stage and has submitted an application for accounting for a non-taxable minimum of 500 euros — a net amount of 604.37 euros is due for payment.
2. The employee has a pension insurance of the 2nd stage, but he has not submitted an application for accounting for the non-taxable minimum — a net amount of 504.37 euros is due for payment.
3.The employee does not have a pension insurance of the 2nd stage and he has submitted an application for accounting for a non-taxable minimum of 500 euros — a net amount of 614.83 euros is due for payment.
4.The employee does not have pension insurance of the 2nd stage and has not submitted an application for accounting for the non-taxable minimum of 500 euros — a net amount of 514.83 euros is required to be paid.
For all 4 options, the employer’s expenses per employee (salary and taxes) amount to 875.05 euros per month.
Various options can be calculated using a tax calculator https://www.kalkulaator.ee/et/palgakalkulaator
The maximum income tax-free minimum rate is 500 euros per month for a monthly income of no more than 1200 euros (this amount is gradually reduced and disappears from 2100.00 euros of gross payments).
The minimum social tax rate for an employer is 192.72 euros per month.
In order to understand this issue, you can contact the accountants of our company and get individual advice.