Payroll Services
Payroll and TSD reporting fully compliant with Estonian tax and labour law
Core Offerings
- Monthly salary calculations
- Estonian tax & social security filings
- Employment contract compliance checks
- Sick leave/vacation tracking
- Year-end tax certificates (Tuludeklaratsioon)
Straightforward Payroll for Estonian Companies
We run payroll accurately and on time: from gross-to-net calculations to payslips, bank payment instructions and the monthly TSD declaration. The workflow follows Estonian income tax, social tax and employment-law requirements.
If you want to estimate take-home pay and total employer cost before payroll runs, use our salary calculator for Estonia 2026. The service is for the point where a calculator is no longer enough and payroll needs to reach TSD filing correctly every month.
Who is it for?
- A company hiring its first employee and needing correct employment registration.
- A growing team with monthly salaries, hourly pay, overtime, vacations or bonuses.
- An e-resident or international company with employees working in Estonia or cross-border.
- A company where board-member fees, fringe benefits or remote work need separate review.
Main 2026 payroll lines
| Line | Paid by | Usual rate |
|---|---|---|
| Income tax | from gross salary after permitted deductions | 22% |
| Employee unemployment insurance | from gross salary | 1.6% |
| Mandatory funded pension, pillar II | from gross salary | 2%, 4% or 6% |
| Social tax | additional employer cost | 33% |
| Employer unemployment insurance | additional employer cost | 0.8% |
| General basic exemption | based on the employee’s application | up to €700/month |
Gross salary alone does not show the full employer budget. Employer taxes are added on top, while net salary depends on the employee’s funded-pension rate and basic exemption application. Exceptions can arise with part-time work, foreign social security, sick pay or fringe benefits.
How the payroll month works
1. Cutoff and source data
We agree the date when you send work hours, overtime, vacations, sick leave, bonuses,
new hires and terminations. The 25th of the month or the last working day before the
payroll run is usually a practical cutoff.
2. Gross-to-net calculation
We calculate net salary from gross pay, employee withholdings, employer taxes and,
where needed, vacation or sick pay. We also check that basic-exemption and pension
data are correct.
3. Payslips and payment instructions
You receive the payroll summary for approval, employee payslips and bank payment
instructions. If anything changed, we correct it before payout.
4. TSD and taxes by the 10th
After approval, we prepare the TSD declaration and tax amounts. TSD is filed and
payroll taxes are paid by the 10th of the following month.
What we check each month
- gross-to-net calculation and total employer cost;
- TSD lines and tax amounts;
- vacation, sick leave, overtime and bonuses;
- employment-register changes for new hires and terminations;
- fringe benefits, if the company uses a company car or covers employee costs;
- payslips sent to employees.
Why Choose Us?
No Surprises
- Fixed monthly fee (no per-payslip charges)
- Direct accountant access via phone/email
Local Expertise
- Estonian-language contract reviews
- Minimum wage and tax rate changes tracked for you
- Remote worker payroll support
Compliance Guarantee
- Penalty-free filing record since 2018
- Audit support if needed
Sources: Estonian Tax and Customs Board, 2026 tax rates and calculation of basic exemption.