Estonia Announced Major Statutory Changes for 2023

Effective 1 January 2023, the Estonian Government has announced the following changes:

• The general tax-free income rate will be increased to 7 848 Euros per year or 654 euros per month. Where the taxpayer’s annual gross income exceeds 25 200 Euros or 2 100 Euros per month the exemption will be zero.
• The minimum hourly wage rate will be 4,30 Euros per hour and the minimum monthly wage is increased to 725 Euros.
• Employer paid Social Tax minimum contribution for 2023 is 215.82 Euros per month.
• The current temporary sick leave compensation system, under which employees receive payment from the second day of illness, will be extended from January 1 to June 30, 2023.

For the tax year commencing on 1 January 2023, the above-mentioned changes will be effected and applied to ensure compliance with the legislated regulation changes.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change