Explore our EOR&PEO services in ESTONIA

As your Estonia EOR, we would support your growth by contracting personnel and handling their payment without establishing a local branch office or subsidiary.

 

In compliance with regional labor laws, your individual is employed by an Estonia PEO and can be onboarded in days as opposed to the usual months. Your new employee will start working for you soon, similarly to the rest of your team.

Estonia PEO
Northern Baltics
Estonia EOR

Country Overview

Estonia is a nation in Northern Europe’s Baltic region. Its borders are the Gulf of Finland to the north, the Baltic Sea to the west, Latvia to the south, and Lake Peipus and Russia to the east. Finland and Sweden are linked across the Baltic Sea.

 

In Estonia, there are 30.3 people per square kilometer. Estonia is now the third least populous nation in the EU, with a population density that is nearly four times lower than the EU average of 116.7 persons per km2.

General Information

  • Population: ~1.300.000

 

  • Capital City: Talinn (population: ~430.000)

 

  • GDP: ~$31 billions

 

  • GDP per capita: ~$23.000
  • Currency: Euro (EUR)

 

  • Unemployment: ~ 5.8%

 

  • Employer Taxes: ~ 23.59%

 

  • Employee Taxes: ~ 30.5 – 33.5%

ESTONIA EOR SPECIFICS

Employment contracts in Estonia

The employer and employee must come to an agreement on a written employment contract before the worker can begin working. In order to begin work, an employment contract must be signed in writing.

 


In Estonia, contracts for employment are typically signed for an unlimited period of time. By properly explaining such necessity, such as seasonal or casual work, paid public service, etc., it is feasible to establish an employment contract for a defined duration in certain circumstances. A fixed-term employment agreement will specify the date on which the work connection ends or the reasons why a particular job will stop, whichever comes first. Such an employment contract may not be longer than five years.

Probation period in Estonia

An employee’s probationary phase often lasts three to four months, and your employment contract is typically ended for an undetermined length of time. The employer must prove that the work is transitory to join into such an employment contract for a specified time (such as a short-term increase in workload or seasonal work).

Working hours in Estonia

A typical workday cannot last longer than eight hours, and a typical workweek is forty hours. One shift may not go longer than 12 hours.


There are 5 days in a fixed workweek.

 

If both the employer and the employee have given their written consent, overtime is authorized. According to the Labor Law, workers who put in extra time or work on a holiday are entitled to a bonus equal to at least 100% of their regular hourly or daily pay. Or if a piecework salary was agreed upon, at least 100% of the piecework price for the work that was completed.

Vacation days in Estonia

A typical workday cannot last longer than eight hours, and a typical workweek is forty hours. One shift may not go longer than 12 hours.

 


There are 5 days in a fixed workweek.

 


If both the employer and the employee have given their written consent, overtime is authorized. According to the Labor Law, workers who put in extra time or work on a holiday are entitled to a bonus equal to at least 100% of their regular hourly or daily pay. Or if a piecework salary was agreed upon, at least 100% of the piecework price for the work that was completed.

Sick leave in Estonia

The employee is entitled to up to 182 calendar days of paid sick leave in the event of illness (max 250 days per year). 70% of his or her average salary from the prior year is recognized in the gross pay during this time. Employers pay wages from the fourth through the eighth days of illness, and authorities begin paying wages on the ninth day.

Wages and Salary Payment in Estonia

The national minimum wage in Estonia will be kept set at €654 per month in 2022, or 7,848 euros a year, since 12 payments are taken into account.

 

The employee’s bank account gets at least one wage payment every month, which is freely negotiable. Every salary is given out in the net amount. Your employer is responsible for computing and withholding all required payroll taxes.

Public Holidays in Estonia

There are officially 14 public holidays in Estonia. Their count days may vary from year to year.

Employer Taxes in Estonia

SSC – Public pension insurance – 20%

 

Public health insurance – 13%

 

Unemployment insurance contribution – 0.8%

Employee Taxes in Estonia

Unemployment insurance contribution – 1.6%

Notice Period in Estonia

No matter the cause, employees are free to leave at any time. The employee must give the employer 30 calendar days’ notice in writing before resigning from their position.

Termination / Severance in Estonia

When an employment contract is canceled, the business pays the employee his “final payment,” which includes their earned wages and any unpaid vacation time. If an employment contract is terminated due to redundancy, the company is also required to give the employee a redundancy payment, which must equal the employee’s average monthly wage. 

 

Employers are required to pay the shorter advance notice time in cash if they shorten the notice period while terminating an employment agreement.

Reviews on our service

5/5
We hired two professional IT workers in Talinn through Acvian. Thank you.
Caroline
image 3 150x150 - Estonia EOR and PEO
5/5
Our business was unable to conduct all payroll operations. Grateful for the help.
Brandon
image 4 150x150 - Estonia EOR and PEO
estonia hiring

EXPAND GLOBALLY WITH ACVIAN

ACVIAN 2022

Drop us a line
Accept *

Thank you! Our specialists will contact you shortly

Ok