Global coverage
Employer of Record Estonia
Hire staff and expand your business in Estonia with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Estonia designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Estonia. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Estonia takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Estonia
A Brief Guide to Estonia
Estonia is a country in Northern Europe, known for its innovative technology sector, rich history, and beautiful landscapes. It has a parliamentary system of government and is a member of the European Union, the United Nations, and various international organizations. The nation has a growing economy driven by various industries.
Category | Information |
Location: | Northern Europe |
Capital: | Tallinn |
Official Language: | Estonian |
Area: | 45,227 square kilometers |
Population: | Approximately 1.3 million |
Currency: | Euro (EUR) |
Major Cities: | Tartu, Narva, Pärnu |
GDP (2020): | $31.39 billion USD |
Human Development Index (HDI): | 0.892 (very high) |
Major Industries: | Information technology, telecommunications, electronics, logistics, and tourism |
Business Culture
Business Culture in Estonia
Business culture in Estonia values professionalism, efficiency, and direct communication. Punctuality is important, as well as appropriate attire and courtesy. Decisions are often made quickly, and personal connections can play a significant role. Engaging in small talk and socializing may be common before discussing business matters.
Being well-prepared and demonstrating expertise is crucial when conducting business in Estonia. A proper work-life balance is appreciated, and adhering to business etiquette, such as exchanging business cards and using proper titles, is expected.
Payroll and Taxes
Payroll and Taxes in Estonia
There is no statutory requirement to pay a 13/14th month in Estonia.
Employee Taxation
Income tax rates in Estonia are flat:
| Taxable Income | Rate (%) |
All Income | 20% |
Employer Taxation
Employer costs in Estonia are relatively simple. Employers are responsible for:
Employer Costs in Croatia | Approximate % of Gross Salary |
Social Security Contributions | 33% |
Unemployment Tax | 0.8% |
Employment Law
Employment Law in Estonia
Employment Contracts: In Estonia, employment contracts should be written, outlining essential details such as employment duration, working hours, salary, and termination notice periods.
Working Hours: The standard maximum working time in Estonia is 40 hours per week or 8 hours per day. Overtime work is regulated, with compensation for extra hours.
Leave: Employees in Estonia are entitled to various types of leave, including paid annual leave (minimum of 28 calendar days per year), maternity leave, paternity leave, sick leave, and family care leave.
Overtime: In Estonia, overtime occurs when an employee works beyond their standard working hours, as specified in their employment contract. Employers are required to compensate for this additional time, typically by offering extra pay or compensatory time off.
Termination: Termination of employment in Estonia requires proper notice, which varies depending on the length of employment. Unjustified termination can lead to claims for damages or reinstatement.
Employees Rights: Employees in Estonia have various rights, such as the right to equal treatment, protection against discrimination, and freedom of association. Regulations address working conditions, workplace safety, and employee representation.
Public Holidays
Estonia Public Holidays
| New Year’s Day: | 1st January |
| Independence Day: | 24th February |
| Good Friday: | Varies |
| Easter Sunday: | Varies |
| Spring Day: | 1st May |
| Whitsunday: | Varies |
| Victory Day: | 23rd June |
| Midsummer Day: | 24th June |
| Day of Restoration of Independence: | 20th August |
| Christmas Eve: | 24th December |
| Christmas Day: | 25th December |
| Boxing Day: | 26th December |
Pension and Healthcare
Estonia Pensions
In Estonia, there is a mandatory state pension system funded by social security contributions from both employees and employers. The contribution rates, as a percentage of an employee’s gross salary, are as follows:
- Employees: 2% for pension insurance
- Employers: 4% for pension (included in the 33.8% social security contribution)
Healthcare in Estonia
Estonia has a public healthcare system that provides basic medical services to its residents. The system is funded through social health insurance contributions from employees and employers, as well as government subsidies and general tax revenues.
IMMIGRATION
Work Permits in Estonia
In Estonia, immigration is a regulated process, just like in any other country. To immigrate, you’ll generally need to apply for a specific type of visa or residency permit based on your purpose for moving, such as work, study, or family reunification.
Work visas typically require a job offer from an Estonian employer, while student visas require enrollment in a recognized educational institution. Family reunification visas may be available to those who have family members living in Estonia.
To obtain a residency permit, you’ll need to meet certain criteria, such as providing proof of sufficient financial resources, having valid health insurance, and passing a background check. Since the official language in Estonia is Estonian, learning the language may be helpful for navigating the immigration process and integrating into the local community.
Once you’ve obtained a residency permit, you’ll need to renew it periodically and adhere to the specific conditions tied to your permit. If you’re interested in becoming a permanent resident or even a citizen, you’ll have to follow additional steps and meet certain requirements, such as living in Estonia for a specified number of years.
Wondering if expanding
in Estonia is right for you?
Read on or speak to a member of our team now
The Benefits
Estonia Employer of Record Benefits
When you choose Agility EOR to expand in Estonia, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Estonia so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Estonian authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Estonia payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.