Statutory and legislative payroll changes in Estonia, each linked to the page it was checked against. For information only, not legal or tax advice: confirm details with the source before acting. See the terms.
Uniform €700 monthly tax-free income for everyone
Effective 1 Jan 2026
The sliding "maksuküür" system is replaced by a uniform tax-free income of €700 a month (€8,400 a year) for everyone from 2026, one year later than originally planned. A separate rate applies to the tax-free income of people of retirement age.
For the employer
- Apply the flat €700 monthly tax-free amount from January 2026 payroll.
For the employee
- Higher earners, who previously lost some or all tax-free income, now receive the full €700 a month.
Source: Rahandusministeerium - Maksuküür kaob 2026. aastal · Last verified 1 October 2026
Minimum wage rises €60 to €946, effective from April
Effective 1 Apr 2026
The Government set the 2026 minimum wage (töötasu alammäär) at €946 a month and €5.67 an hour, raising it by €60 from 1 April 2026, as agreed in a collective agreement between the Estonian Trade Union Confederation and the Estonian Employers' Confederation. The Ministry of Finance estimates about €9.7 million in additional 2026 tax revenue.
For the employer
- Raise any employee paid below €946/month (€5.67/hour) from the April 2026 pay run.
For the employee
- Minimum-wage workers get a €60 monthly increase from April 2026.
In practice: €946 - €60 = €886, the previous monthly minimum.
Source: Majandus- ja Kommunikatsiooniministeerium - Töötasu alammäär tõuseb aprillist 946 euroni · Last verified 1 October 2026
Data-based TSD replaces the tax declaration form
Effective 1 Apr 2027 Upcoming
The Tax and Customs Board (MTA) is moving to data-based reporting: the accountant will send transaction data to the tax authority, which calculates the taxes itself. MTA confirmed the new system takes effect on 1 April 2027.
For the employer
- Check with accounting and payroll software providers about readiness for data-based submission before April 2027.
Source: Raamatupidaja.ee - Maksuamet muudab TSD süsteemi · Last verified 1 October 2026
Pay Transparency Directive - recruitment rules being transposed, reporting postponed
Upcoming - transposition in progress Draft — not yet law
Estonia is transposing the directive's recruitment-related rules: pay or a pay range must be disclosed before the job interview, candidates may not be asked about previous pay, and employers may not prevent employees from discussing their pay. The more demanding obligations - structured pay systems and regular reporting by larger employers - are being delayed while Estonia seeks simplification.
For the employer
- State pay or a pay range in recruitment before interviews and remove salary-history questions.
For the employee
- Candidates can see the offered pay range and cannot be asked about previous pay.
Source: Majandus- ja Kommunikatsiooniministeerium - KKK: palkade läbipaistvuse direktiiv · Last verified 1 October 2026