Estonia reforms social tax system

Jul 22, 1999
By Kairi Kurm

TALLINN - The Estonian government will propose that all employers should raise their employees' wages by 8 percent to prevent a drop in income after the obligatory endowment pension is introduced. When the endowment pension system is implemented in 2001, the part of social tax paid by employers into the state pension insurance budget will decline from the present 20 percent to 12 percent. The remaining 8 percent will have to be paid by the employee into an endowment pension fund of his choice. T ...

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