Estonia EOR & PEO

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Hire in Estonia

Horizons provides compliance solutions to ensure your business in Estonia operates in line with Estonian labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Estonia in a range of industries, from customer service, to accounting services, to software development.

We also process monthly payroll, and, as an Estonia Employer of Record, absorb all local employer liabilities. Partnering with our Estonia EOR is the quickest and most cost-effective way to enter the Estonian market.

Note, a Estonia Employer of Record is also known as a Estonia Professional Employer Organization (PEO).

Facts & Stats

stay compliant with Estonia labor laws

Employment Laws

Estonia employment contracts

Formal employment contracts are a legal requirement in Estonia. These contracts should be provided for every employee and include all relevant details of the employment agreement, such as working hours, description of duties, salary/wage, and so on. The contracts should always be written in Estonian and use the local currency of the Euro.

Fixed-term

Indefinite

Working hours in Estonia

The normal working week for employees in Estonia is made up of five eight-hour days, totaling 40 hours per week.

Holiday Schedule in Estonia [2024]

Estonia has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

Date	Holiday name
1 Jan, 2024	New Year’s Day
24 Feb, 2024	Independence Day
29 Mar, 2024	Good Friday
31 Mar, 2024	Easter Sunday
1 May, 2024	Labour Day
19 May, 2024	Pentecost
23 Jun, 2024	Victory Day
24 Jun, 2024	Midsummer Day
20 Aug, 2024	Independence Restoration Day
24 Dec, 2024	Christmas Eve
25 Dec, 2024	Christmas Day
26 Dec, 2024	Boxing Day

Vacation in Estonia

Generally, employees in Estonia are entitled to 28 days of paid vacation leave per year.

Sick leave in Estonia

Workers in Estonia are entitled to up to 182 days of sick leave per year, which is covered at 70% of normal pay by both the employer and the state. From the fourth to the eighth days of absence, employers pay the compensation, and the state takes over payments for any following absence.

Maternity and paternity leave in Estonia

Female employees in Estonia can take up to 140 days of paid maternity leave, with the government paying the benefit during this time.

Fathers can take up to ten days of paid paternal leave, which is also covered by the government.

There is also a possibility to take parental leave up until the child turns three. This leave (in combination with maternal leave) has a limit of 575 days and is also covered by the state.

Employee severance and terminations in Estonia

The standard notice period prior to termination for employees in Estonia is between 15 and 90 days, depending on how long they have been with their employer.

Upon redundancy, employees are entitled to a severance payment of one month of salary. For employees who have worked for between five and ten years, this payment is increased by one month of salary (covered by unemployment insurance), and if they have more than ten years of service then they receive two extra months.

Probation periods in Estonia have a limit of four months.

Tax laws in Estonia

Employers in Estonia must contribute a percentage of salary toward employee benefit schemes. 20% must be contributed to pensions, and 13% to health insurance, totaling 33% on top of salary.

There is also an unemployment insurance scheme, to which employers must contribute 0.8% of salary, and employees must contribute 1.6%.

The income tax rate in Estonia is 20%. The corporate tax rate in Estonia is generally 20%, but this rate can vary in some circumstances.

Health coverage in Estonia

Estonia has state-funded healthcare, so employers are not required or expected to offer private health insurance.

hassle-free Estonia compensation & benefits

Compensation & Benefits

Compensation laws in Estonia

As of January 2024, the minimum wage in Estonia is €4.86 per hour.

Minimum Wage Country Comparison Chart	(Per month in USD)
Switzerland (Geneva)	$4,000
Italy	$2,255
Australia	$1996
Algeria	$156
Uzbekistan	$22

Benefit management in Estonia

Building a benefits system for your Estonian workforce can be difficult and complicated to navigate if you are not familiar with the country, its customs, and its employment laws. To set it up independently, it can take several weeks and potentially lead to unexpected delays.

Horizons can help to significantly simplify this step of your Estonia expansion by providing benefit management outsourcing. Our team can advise you and handle the setup of your benefits scheme, enabling you to focus on expanding your organization in Estonia.

Estonia Employer Of Record Peo

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Hire in Estonia

Employment Laws

Working hours in Estonia

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

What is the difference between an Estonia PEO and an Estonia EOR?

Generally speaking, the terms “Estonia PEO” and “Estonia EOR” are used interchangeably.

Can an EOR in Estonia hire both local and foreign nationals to work in Estonia ?

An EOR in Estonia can feasibly hire both local and foreign nationals to work in Estonia.

However, the ability of Horizons to sponsor your foreign national employee in Estonia may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

How long does Horizons' Estonia EOR service take to hire an employee?

In most cases, Horizons’ Estonia EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Estonia.

Is it possible to get a work visa in Estonia ?

It is possible to get a work visa in Estonia. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Estonia are limited, however—get started today to secure your employees’ visa spot.

Estonia EOR & PEO

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Hire in Estonia

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stay compliant with Estonia labor laws

Employment Laws

Estonia employment contracts

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Estonia

Vacation in Estonia

Sick leave in Estonia

Maternity and paternity leave in Estonia

Employee severance and terminations in Estonia

Tax laws in Estonia

Health coverage in Estonia

hassle-free Estonia compensation & benefits

Compensation & Benefits

Compensation laws in Estonia

Benefit management in Estonia

Hire in Estonia in 24h without your own local entity.

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