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Estonia is a country in Northern Europe bordered by Latvia, Russia, the Baltic Sea, and the Gulf of Finland. Its territory also contains over 2,200 islands and islets. Estonia’s GDP ranks above average with a flourishing tech scene. It’s considered a developed country with a high-income economy ranking highly in the Human Development Index.
The minimum wage is EUR 725 per month, with a standard workweek of 40 hours per week, and 8 hours per day. Any work done past this is considered overtime and regulated by employment contracts.
Pregnant employees in Estonia are entitled to 140 days of paid maternity leave, which can begin at least 70 days before the due date. Fathers are entitled to 10 days of paternity leave that can be taken before the birth date, and 2 months after the birth. Fathers can receive their full salary with a maximum of 3x the minimum wage. These leaves are paid for by social security.
Employees in Estonia are also entitled to paid leave to raise a new child or help a postpartum partner, both of which are paid for by the state. This parental leave can be taken up until the child turns 3 years old. The parents can take up to 435 days of leave, but only one parent can take it at a time. Employees can also receive adoption leave and childcare leave.
Estonian employees are allowed up to 182 days of paid sick leave each year, which is paid at 70% of the average wages. This leave is paid by the employer until the 8th day, and after that the employee receives sickness benefits from social security.
There are 12 public holidays in Estonia, and employees are also entitled to at least 28 days of paid time off each year, accrued at 2.33 days per month.
Employment contracts can be terminated in cases of misconduct or employee resignation. Misconduct includes negligence, fraud, and other work offenses. If the termination reason is misconduct it requires a written warning and the employee gets a chance to explain their actions.
The notice period depends on how long the employee has worked at the company:
If an employee is terminated for redundancy, the employer is generally required to pay 1 month of salary. Employees who have worked at a company for 5-10 years receive 1 more month of wages, and those who have worked 10+ years receive 2 additional months of wages.
A 13th-month salary is not mandatory in Estonia, however it is common for employers to give employees annual bonuses.
★ 20% - Pension Fund
★ 13% - Health Insurance
★ 0.8% - Unemployment Insurance
You've sourced a full-time employee or contractor located in a country where your company is not incorporated.
Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.
Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.
It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.
Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.
