Hiring your first employee in an OÜ — what you need to know

Hiring your first employee turns an OÜ into an employer. On top of salary come social tax 33%, income tax withholding 22%, unemployment insurance (1.6% employer + 0.8% employee), an employment contract and a monthly TSD. Below is the 2026 launch checklist.

Before signing the contract

• Duties, working time, probation, pay and benefits in writing
• Check whether an employment contract or another form fits (e.g. civil-law contract — different tax logic)
• Plan the gross cost: salary + 33% social tax + employer unemployment insurance

From April 2026 the minimum wage is €946 per month (full-time). You may not pay less for full-time work.

Registration and documents

1. Sign a written employment contract
2. Register employment in the employment register (before work starts)
3. Set up payroll (income tax, social tax, unemployment insurance, funded pension if applicable)
4. Open or check e-MTA rights for filing TSD

Monthly rhythm

Salary is paid per the contract. Payouts are reported on the TSD, due by the 10th of the following month. Pay taxes by the deadline — lateness brings interest.

If you are also VAT-liable, KMD stays on a separate rhythm (the 20th). Payroll and VAT are different processes — do not dump them into one “month-end pile”.

Practical guide: payroll for employers.

Owner vs employee

If you yourself work in the company, decide whether an employment contract, board member fee or a mix with dividends fits — see board fee vs salary vs dividend. For an employee, labour-law rules apply (leave, sick pay, termination).

Common mistakes

• Working without a register entry
• “Envelope pay” or unpaid work as a “trial”
• Forgetting TSD in the first month
• Leaving personal benefits (phone, car) unreported

GPCONSULT OÜ

We set up payroll, help with the contract and register entry, and file TSD on time. Your first employee does not have to mean spreadsheet chaos.