From January 1, 2024 the minimum wage increases to 820 euros per month (in 2023 it was 725 euros, in 2022 654 euros).
The minimum social tax in 2024 is 239.25 euros (33 % of the 2022 minimum wage, i.e. 654 x 0.33). This is the amount to be paid monthly for a contracted employee, and for any other contract it is the minimum amount to be paid to get valid EHIF insurance.
In 2024, the general rate of tax-free income remains at 654 euros per month, as it was in 2023. The formula therefore remains the same: 654–654/900 × (payout–1200).
From January 1, 2024, the standard rate of VAT in Estonia is 22% instead of the current 20%.
If the goods or services supplied are taxed at the standard rate, a cash accounting VAT user may, until 30 June 2025, continue to pay VAT on turnover of goods and services incurred after 31 December 2023 at the rate of 20% if an invoice was issued to the purchaser and the goods were dispatched or made available or the service was provided before 1 January 2024.
The second transitional provision concerns transactions relating to long-term contracts, primarily those relating to immovable property. Until 30 June 2025, a taxable person will still be entitled to apply the 20% VAT rate applicable up to 31 December 2023 when supplying goods or services under a written contract concluded before 1 May 2023, provided that the contract stipulates that the price of the goods or services includes VAT or VAT is added to the price at the 20% rate and that the contract does not provide for the price to be altered due to a possible change in the VAT rate.
Various examples can be found on the EMTA website EMTA website
From January 1, 2024, persons who have joined the II pillar of the funded pension have the opportunity to increase their funded pension contribution rate from 2% to 4% or 6%. To apply the change, a corresponding application must be submitted to the keeper of the pension register or the account administrator within the period Jan1, 2024 to Nov 30, 2024. The new rate will apply from Jnauary 1, 2025. If a person has several employers, the new rate will be applied at all employers. The state’s contribution, 4%, will not change.