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SALARY PAYMENT IN Euro (EUR, €)
CONTRACT LANGUAGES Estonian / English
PAYROLL TAX 33.8%
PAYROLL CYCLE Monthly
TIME TO HIRE 24 hours
Get Started
Hire and pay talents
with Horizons in
180+ countries
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 PEO is the quickest and most cost-effective way to enter the Estonian market.
PEO Platform Hire in Estonia, and pay employees through our platform or app. | PEO Cost Our Estonia PEO solution is the most affordable on the market. | Time-to-hire Fast onboarding in Estonia, hire in as little as 24 hours. |
Contracts We draft labor contracts compliant with Estonian labor law. | Local Benefits We administer all mandatory benefits and contributions in Estonia. | 180+ Countries It doesn’t stop with Estonia — we are an international PEO |
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.
Probationary period | 0 – 4 months |
Termination notice period | 15 – 90 days, depending on service time |
Severance | 1 – 3 months’ salary |
Probationary period | 0 – 4 months |
Termination notice period | 15 – 90 days, depending on service time |
Severance | 1 – 3 months’ salary |
The normal working week for employees in Estonia is made up of five eight-hour days, totaling 40 hours per week.
Quick, compliant hiring in 24 hours—no subsidiary required.
Date | Holiday name |
---|---|
1 Jan, 2023 | New Year’s Day |
24 Feb, 2023 | Independence Day |
7 Apr, 2023 | Good Friday |
9 Apr, 2023 | Easter Sunday |
1 May, 2023 | Labour Day |
28 May, 2023 | Pentecost |
23 Jun, 2023 | Victory Day |
24 Jun, 2023 | Midsummer Day |
20 Aug, 2023 | Independence Restoration Day |
24 Dec, 2023 | Christmas Eve |
25 Dec, 2023 | Christmas Day |
26 Dec, 2023 | Boxing Day |
Generally, employees in Estonia are entitled to 28 days of paid vacation leave per year.
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.
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.
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.
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.
Estonia has state-funded healthcare, so employers are not required or expected to offer private health insurance.
As of January 2020, the minimum wage in Estonia is €3.48 per hour.
Minimum Wage Country Comparison Chart | (Per month in USD) |
Switzerland (Geneva) | $4,000 |
Italy | $2,255 |
Australia | $1996 |
Algeria | $156 |
Uzbekistan | $22 |
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.
With Horizons, you get quick service, transparent pricing, and expert support.
An Estonia PEO and an Estonia EOR are two types of companies which specialize in providing human resources services to businesses in Estonia.
The main difference between an Estonia PEO and an Estonia EOR is in the scope of their services.
Estonia PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging an Estonia PEO is essentially outsourcing your HR duties in Estonia.
Estonia EORs actually take over as the legal employer of your employees based abroad. Estonia EORs become responsible for labor compliance for your employees in Estonia.
At Horizons, we offer both PEO and EOR services in Estonia. Get in touch now and let us know what service you are seeking.
A PEO 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.
In most cases, Horizons’ Estonia PEO 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.
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.
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