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Estonia

Global Employment Solutions & PEO in Estonia

Omnipresent makes it fast and easy to employ remote talent in Estonia. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

Estonia

Omnipresent Employment Rating

Capital City
Tallinn
Currency
Euro (€, EUR)
Language
Estonian
Payroll Frequency
Monthly
Population

How do Omnipresent Global Employment Solutions Work?

Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Estonia. Traditional methods of establishing global employment and subsidiaries in Estonia typically take months and can incur heavy costs. Omnipresent's global employment solutions and PEO services is helping hundreds of organisations onboard new employees in Estonia in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process.

  • Your company conducts the hiring and candidate selection process in Estonia.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Estonia.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Estonia.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.

Curious to learn more?

Employer Costs in Estonia

Employer costs include Pension, Health Insurance, and Unemployment Insurance. Use the OmniCalculator to estimate costs, or contact us for further information.

Employee Income Taxes in Estonia

20% flat rate.

Employee Social Contributions in Estonia

Employee contributions include Mandatory Funded Pension and Unemployment Insurance.

Working Hours in Estonia

The typical work week in Estonia consists of 40 hours per week or 8 hours per day. Usual work days are Monday to Friday. Overtime laws in Estonia are complex and can depend on the specific circumstances and the employee.

Holidays & Vacation in Estonia

Please note that the below information covers national holidays and should be used for informative purposes only and not as a guarantee for payroll purposes. While we strive to offer you accurate information, public holidays are subject to frequent changes and can be dependent on regional differences. Should you need more detailed information on public holidays, please consult the government pages of the state and/or the local municipality of your employee.

  • Saturday, Jan 01, 2022 - New Year's Day (uusaasta)
  • Thursday, Feb 24, 2022 - Independence Day (iseseisvuspäev)
  • Friday, Apr 15, 2022 - Good Friday (suur reede)
  • Sunday, Apr 17, 2022 - Easter Sunday (lihavõtted)
  • Sunday, May 01, 2022 - Labour Day (kevadpüha)
  • Sunday, Jun 05, 2022 - Pentecost (nelipühade 1. püha)
  • Thursday, Jun 23, 2022 - Victory Day (võidupüha)
  • Friday, Jun 24, 2022 - Midsummer Day (jaanipäev)
  • Saturday, Aug 20, 2022 - Day of Restoration of Independence (taasiseseisvumispäev)
  • Saturday, Dec 24, 2022 - Christmas Eve (jõululaupäev)
  • Sunday, Dec 25, 2022 - Christmas Day (esimene jõulupüha)
  • Monday, Dec 26, 2022 - Boxing Day (teine jõulupüha)

Sick Leave Entitlement in Estonia

The first 3 days of sick leave in Estonia are unpaid. From day 4 through to 8 the employer pays a percentage of the employee's salary. After that employees are entitled to eligible sickness benefits provided by the state, subject to certain conditions. 

Parental Leave in Estonia

Maternity Leave

Estonia has strong pregnancy and maternity leave regulations including 140 days of leave, all of which are paid at 100% salary by the Health Insurance Fund.

Paternity Leave

Paternity leave in Estonia includes 30 days paid leave that can be taken 30 days prior to birth and until the child’s third birthday.

Unpaid Childcare Leave

It’s common for Eastern European countries to allow full-time unpaid childcare leave from the end of maternity leave until the child is aged 3. Estonia allows for 10 unpaid childcare leave days per year until the child reaches 14 years of age.

Annual Leave Entitlement in Estonia

Employees in Estonia are entitled to 28 calendar days of paid leave per year if they've completed at least six months of work.

Severance Pay Entitlement in Estonia

Severance pay will usually be required in Estonia in case of termination of employment. For fixed-term employees, severance pay is equal to 1 months’ average salary. For termination due to a breach by the employer, severance pay is equal to 3 month’s average salary.

Employees with between 5 - 10 years of service are entitled to an additional 1 month’s salary from the Unemployment Insurance Fund (Töötukassa) and employees with 10+ years of service are entitled to an additional 2 months salary from the Fund.

Termination in Estonia

For termination of an employment contract in Estonia, a written notice and explanation of the termination is required. The valid grounds for termination are found within the Labour Law.

Termination can be challenged within 30 days as of receipt of the termination notice.

Estimate employment costs with OmniCalculator

Global Employment Cost Calculator

Get an estimate of the employment costs for hiring in Estonia.

United Kingdom

GBP 60,000 annual salary

Base Salary
Employer's Costs (Estimate)
VAT
Average Monthly Employer Cost *

* These employer costs are subject to frequent updates, and can depend on a variety of employee variables. They are only a ballpark estimate, and the actual figure may be above or below the quoted amount based on a number of variables. These estimates represent a monthly average each year. In some cases, contribution maximums will lead to payments earlier in the year being larger, before being reduced once max is hit. If a 13th and 14th month are applicable, these have been pro-rated into the gross salaries.

Expertise at your fingertips

Book your free consultation with one of our experts to see how easy it can be to employ in .

Employ the Best Talent, Anywhere in the World

Grow Your Global Team

The benefits of growing a global team and finding the best talent anywhere in the world are endless. It's important to note that labour laws and regulations in Estonia are strict with penalties for non-compliance. Let our team take care of the details such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We're here to help you every step of the way.

Our clients rate us over 4.7 out of 5.
Want to see why?

Source: Trustpilot and G2 reviews in November 2022