Salary cost
What a EUR 3,000 salary really costs in the Baltics
A EUR 3,000 gross salary is not a EUR 3,000 employer cost, and it is not the employee’s take-home pay. The right comparison is net pay, employer social contributions, statutory thresholds, and any benefits needed to make the offer competitive.
| Layer | What to compare | Why it matters |
|---|---|---|
| Gross salary | Contracted monthly salary before employee taxes. | Good for offer language, weak for budgeting. |
| Employee deductions | Income tax, employee social insurance, pension choices where relevant. | Drives the perceived value of the offer. |
| Employer contributions | Employer social tax / insurance and local funds. | Creates the true monthly company cost. |
| Market premium | Benefits, remote allowance, equipment, recruitment time. | The cheapest payroll rate can still lose the candidate. |
- Calculate total cost, not only gross salary.
- Compare net pay in the employee’s likely country of work.
- Confirm pension and allowance assumptions.
- Keep a margin for benefits and hiring friction.
Shortcut: run the payroll calculator first, then ask a local payroll provider to validate the final payslip assumptions.
Sources: Estonian social tax, Latvian 2026 labour tax changes, Sodra 2026 contribution rates.