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.
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.
45,227 square kilometers
Approximately 1.3 million
Tartu, Narva, Pärnu
$31.39 billion USD
Human Development Index (HDI):
0.892 (very high)
Information technology, telecommunications, electronics, logistics, and tourism
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.
Income tax rates in Estonia are flat:
Employer costs in Estonia are relatively simple. Employers are responsible for:
Employer Costs in Croatia
Approximate % of Gross Salary
Social Security Contributions
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.
Estonia Public Holidays
|New Year’s Day:||1st January|
|Independence Day:||24th February|
|Spring Day:||1st May|
|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
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.
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.
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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