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Employer of Record (EOR) in Estonia

What you'll learn

  • Country Introduction
  • Employment Terms
  • Minimum Wage and Working Hours
  • Statutory Leave Laws
  • Termination Process
  • Additional Information
Estonia Introduction

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.

Employment Terms

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.

Types of Leave

Parental Leave

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.

Sick 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.

Paid Leave

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.

Termination Process


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.

Notice Period

The notice period depends on how long the employee has worked at the company:

  • 0-1 years = at least 15 days
  • 1-5 years = at least 30 days
  • 5-10 years = at least 60 days
  • 10+ years = at least 90 days

Severance Pay

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.

Additional Information

A 13th-month salary is not mandatory in Estonia, however it is common for employers to give employees annual bonuses.

Euro (EUR)
Capital City:
1.3 Million
Cost of Living Rank:
VAT (Valued Added Tax):
Employer TaxES

★  20% - Pension Fund

★  13% - Health Insurance

★  0.8% - Unemployment Insurance

Get Started in 3 Steps


Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.


Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.


Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
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Available in 180+ countries
How Remofirst employs in Estonia

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.

How employees in Estonia get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Estonia are paid on time in Euro (EUR). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

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.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Estonia, they can speak with our customer support team to get answers from our team of experts.