Talent Wiki - Estonia
Your quick guide on talent and labor compliance norms in Estonia
Capital
Tallinn
Currency
Euro
Languages
Estonian
Payroll Frequency
Monthly
GDP per Capita
$29,343.93
Employer Tax
33.8%
Talent Overview
Estonia has a market-based economy and is currently the 7th freest economy in the world (with a freedom score of 80.0). Being a part of the European Union has worked in their favor as their economy heavily relies on trade. This allowed them to maintain strong economic ties with Finland, Sweden, and Germany. Moreover, Estonia’s telecommunications and electronics sectors have also contributed to its continued growth and development.
Major economic hubs:
Tallinn, Tartu, Narva
Skills in demand:
ICT professionals, Healthcare professionals, Legal
Local Universities
The top local universities with ranks in Estonia are mentioned below:
University of Tartu / Tartu Ülikool
Ranking
Local: 1
World: 512
Tallinn University of Technology / Tallinna Tehnikaülikool
Ranking
Local: 2
World: 1218
Tallinn University / Tallinna Ülikool
Ranking
Local: 3
World: 1620
Estonian University of Life Sciences / Eesti Maaülikool
Ranking
Local: 4
World: 3181
Estonian Academy of Arts / Eesti Kunstiakadeemia
Ranking
Local: 5
World: 3187
Salary Data
The average monthly salary in Estonia from some major job roles are:
| Job Title | Average Monthly Salary (EUR) | Average Monthly Salary (USD) |
| Financial Manager | 5,420 EUR | 5743.14 USD |
| Chief Financial Officer | 5,290 EUR | 5605.39 USD |
| Accounting Manager | 4,070 EUR | 4312.65 USD |
| Business Development Manager | 4,120 EUR | 4365.63 USD |
| Financial Analyst | 3,520 EUR | 3729.86 USD |
| Customer Service Manager | 1,050 EUR | 1112.60 USD |
Talent Sourcing Tips
Top Local Job Boards
Number of LinkedIn users
304,400
Top Recruitment Agencies
Employing in Estonia
Employees in Estonia are characterized as highly skilled, making the country’s labor market a promising opportunity for global businesses. Additionally, labor laws and rules are easy and straightforward. Here are some things that employers need to know about employing in Estonia.
Employee Contract
The primary language used in employment contracts is the Estonian Language. However, the language of the contract can be in a foreign language if both parties agree to use such.
Probation Period
Employees in Estonia are given from 1 to 4 months of probation period.
Public and Provincial Holidays
| Date | Name | Type |
| 1 Jan | New Year’s Day | National holiday |
| 24 Feb | Independence Day | National holiday |
| 7 Apr | Good Friday | National holiday |
| 9 Apr | Easter Sunday | National holiday |
| 1 May | Labor Day | National holiday |
| 28 May | Pentecost | National holiday |
| 23 Jun | Victory Day | National holiday |
| 24 Jun | Midsummer Day | National holiday |
| 20 Aug | Independence Restoration Day | National holiday |
| 24 Dec | Christmas Eve | National holiday |
| 25 Dec | Christmas Day | National holiday |
| 26 Dec | Boxing Day | National holiday |
Employee Leaves
| Type of Leave | Duration | Mandatory |
| Annual Leave | 28 days | Yes |
| Sick Leave | 30 days | Yes |
| Maternity Leave | 140 days | Yes |
Payroll
Payroll Cycle
Employees in Estonia are paid once a month.
Minimum Wage
The minimum hourly wage in 2023 is 4.30 EUR (gross) and the minimum monthly wage is 725 EUR.
Overtime Pay
The standard working hours in Estonia are 48 hours per week. Overtime work should not exceed over 8 hours within a 7 day period. The period of overtime may offset work days unless employers agree to compensate the employee’s extra work with money. If so, Overtime is compensated at a rate of 1.5 times the wages.
Bonus
13th Month Pay
A 13th-month pay is not mandatory in Estonia.
Employee Benefits
Estonia offers a lot of benefits for their employees. Below are some of them:
- Maternity leave
- Paternity leave
- Pension system
- Employment Insurance
- Health Insurance
- Dental Care
Taxes
Employer Payroll Tax
| Category | Rate |
| Pension | 20.00% |
| Health Insurance | 13.00% |
| Unemployment Insurance | 0.8% |
Employee Payroll Tax
| Category | Rate |
| Pension | 2% |
| Unemployment Insurance | 1.6% |
Employee Income Tax
Estonia has a flat rate of 20% for all items acquired through income.
VAT
The country’s standard VAT is 20%. However, it can be reduced by 9% for certain commodities such as books and periodicals, medicines and medical equipment, accommodation, and sanitary and toiletry products.
Offboarding & Termination
Termination in Estonia can take place in three ways:
- Immediate Termination – An employer terminates the contract immediately due to misconduct
- Employee Resignation – Employees can send a written resignation between 14 days and 1 month
- Termination with notice – The employee agreement determines the notice period.
Probationary employees’ notice period depends on the contract between the employee and employer, while non-probationary employees have up to 15 – 90 days.
If the contract is terminated due to redundancy, the employer must pay compensation of one month’s average wage for the employee’s last six month’s salary. For employment terms between 5 and 10 years, an additional one month’s pay has to be given.
Visa and Immigration
Estonia belongs to a part of the European Union (EU), and foreign workers belonging to the EU need no visa to enter the country. If they are to work and stay in Estonia for more than three months, they only need to apply for a residence permit at the Population Register of Estonia and secure an Estonian ID card.
