Payroll services in Estonia

What payroll includes

• salary calculations
• leave and holiday pay
• other payments (rent, interest, expense reimbursements, business trip daily allowances, etc.)
• deductions from salaries (including bailiff orders, child support, expense reimbursements)
• taxes withheld from pay and employer taxes on top of salaries (including social tax)
• preparing and filing the payroll tax return (TSD) with the Estonian Tax and Customs Board
• sending you the tax summary
• preparing payment orders or making the payments, as agreed
• entries in the Employment Register (TÖR) and confirming sick leave certificates on eesti.ee

We run payroll in Merit Palk. Read: how holiday pay is calculated in Estonia.

Taxes on salaries in Estonia

An employer in Estonia withholds income tax and the employee's unemployment insurance contribution from gross salary, and pays social tax and the employer's unemployment insurance contribution on top. It is all reported once a month on the TSD return, which we prepare and file. The current rates, the minimum wage and the basic exemption are in our posts: Estonian tax rates 2026, minimum wage 2026, basic exemption 2026 and working hours and public holidays 2026.

Price

Payroll is included in the fixed monthly fee. Examples from our price list:

• 1–2 salaried employees, ~30 documents a month – €80–95 + VAT per month
• 5–6 employees, ~100 documents a month – €320–560 + VAT per month
• 10–20 employees, daily bank and invoice processing, business travel, projects – €880–1,600 + VAT per month

Payroll on its own is billed by the hour at €40 + VAT. Advice on staff costs and employment taxes is €55–95 + VAT per hour under tax and business advisory.

Sources

• Estonian Tax and Customs Board – business client