Board member fee vs salary vs dividend — what to choose?

As an OÜ owner you can take money out mainly in three ways: board member fee, salary or dividend. Each has its own tax burden, paperwork and effect on health insurance. Below is the 2026 comparison for a practical choice.

Quick comparison

• Salary — employment contract, social tax 33%, income tax withholding 22%, unemployment insurance (1.6% employer + 0.8% employee), health insurance and pension credit
• Board member fee — board decision / agreement, social tax 33%, income tax 22%; no employment contract needed if you act as a board member
• Dividend — only from distributable profit, rate 22/78, no social tax; does not give health insurance or pension credit

Salary — when does it make sense?

Salary fits when you work in the company daily under an employment contract or want a clear labour-law relationship. The employer pays social tax 33% on gross salary. From the employee's pay, income tax 22% is withheld (minus allowed deductions) plus unemployment insurance contributions.

Minimum wage from April 2026 is €946 per month. If you pay salary, it must be documented, reported on the TSD and transferred to the bank — see payroll for employers.

Board member fee

A board member fee is a common owner-manager payout. Social tax 33% and income tax withholding 22% apply similarly to salary. The difference: the relationship rests on board status, not an employment contract.

Pay the fee regularly and document the decision. Random large transfers without a decision invite Tax and Customs Board (MTA) questions. Payouts go on the TSD (deadline the 10th).

Dividend — distributing profit

Dividends are taxed at 22/78: net €7,800 means €2,200 company income tax. No social tax on dividends. Condition: the company must have distributable profit and a proper shareholders' resolution. Detail: dividend taxation in an OÜ.

A dividend does not replace health insurance. If your only income is dividends, check your medical insurance status.

Practical mix

Many owners use a sensible board fee or salary (health insurance + steady cash) and pay dividends when profit allows. Wrong approaches: calling something “salary” with no payroll, or labelling every transfer a dividend.

Common mistakes

• Paying a dividend without profit and a resolution
• Board fee without TSD and social tax
• Covering personal costs from the company account as a “fee”
• Using old 14/86 dividend rules in 2026

GPCONSULT OÜ

We calculate the tax cost of your payouts, prepare resolutions and TSD entries, and keep salary and dividend accounting in order.