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Estonia: Personal Taxation

Social Security Taxes

The Estonian social security system is comprised of seven schemes: health insurance, unemployment insurance, State unemployment allowances, State family benefits, social benefits for disabled people, State funeral benefits, and pension insurance.

Employers are required to pay social tax on payments made in cash (or kind) to all employees. Employees do not pay social tax – employers pay the tax for them. Individual traders (sole proprietors) must pay the tax themselves. The rate of social tax is 33%, apportioned 20% to social security and 13% to insurance.

The minimum base rate for paying this tax is equivalent to the Estonian minimum wage. Upper limits apply to sole proprietors; this is calculated by multiplying the minimum wage by a factor of 15 and then by 12 (months).

 

 

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