{"id":4284,"date":"2023-02-09T13:57:17","date_gmt":"2023-02-09T13:57:17","guid":{"rendered":"https:\/\/amsgroup.ee\/?p=4284"},"modified":"2023-02-09T14:45:48","modified_gmt":"2023-02-09T14:45:48","slug":"top-5-voprosov-o-minimalnoi-zarplate-2023","status":"publish","type":"post","link":"https:\/\/amsgroup.ee\/en\/top-5-questions-about-minimum-wage-2023\/","title":{"rendered":"Top 5 questions about minimum wage in 2023"},"content":{"rendered":"
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As of January 1, 2023, the minimum wage for an employment contract has changed in Estonia. Instead of 654 euros the new amount became 725 euros gross.<\/span><\/p>

We have selected the top 5 main questions that arise when our clients change the amount of the minimum wage every year.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What are net and gross wages?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The net wage is the employee's net take-home pay, i.e. how much he or she has received in his or her bank account.<\/span><\/p>

The gross wage is the employee's net wage + income tax + unemployment contribution + funded pension. That is, by law, taxes are not counted on the amount that the employee gets on hand, but on the amount that will include these taxes. <\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Why aren't taxes counted on a net basis?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Because income tax, unemployment contribution, and contributory pension are not company taxes. These are taxes that are actually paid by the employee, and the employer only withholds these taxes and remits them to the state because it was more convenient for the state to do so.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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How does the change in minimum wage affect my company?\n<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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If you had minimum wage workers in Estonia who were working under a full-time employment contract (NB! only under an employment contract)<\/strong>, you are obligated to pay the employees the new minimum wage.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What do I have to do to change my employee's wage?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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You can make a wage change addendum to your employment contract and upload it to Nola Accounting or you can use our addendum and update the entire employment contract using our guide<\/a>. <\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What about the nontaxable minimum wage statement?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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As of January 1, 2023, it is allowed to exempt wages from income tax up to \u20ac654 instead of \u20ac500.\u00a0<\/span><\/p>

If the employee wants the new amount to apply, he or she needs to fill out an application form and submit it to you. You can find a sample application form in the Document Templates<\/a>.<\/span><\/p>

The application form signed by the employee must also be uploaded to Nola Accounting.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

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