Free Webinar: Learn everything you need to know about building a team in India. Register now

Find the best candidates for your team

Hire full-time talent in 180+ countries

Easily manage and pay your contractors

Local benefits & insurances

Relocation and visa made easy

With no hidden fees

How we manage your data

Local HR Knowledge

Our borderless team and our global purpose

How businesses accelarate hiring with Horizons

Become a partner and benefit from unique offerings

Discover our international offices

Join our mission to shaping the New World of Work

hire in Estonia

Estonia PEO &
Employer of Record





TIME TO HIRE 24 hours

Hire and pay talents
with Horizons in
180+ countries

Simple, compliant hiring with Horizons PEO

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 PEO is the quickest and most cost-effective way to enter the Estonian market.

Facts & Stats

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
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.

Probationary period0 – 4 months
Termination notice period15 – 90 days, depending on service time
Severance1 – 3 months’ salary
Probationary period0 – 4 months
Termination notice period15 – 90 days, depending on service time
Severance1 – 3 months’ salary

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.

Hire compliantly in Estonia without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

National holidays in Estonia

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.

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

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.