Global Employment Solutions & PEO in Estonia

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.

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

20% flat rate.

Employee contributions include Mandatory Funded Pension and Unemployment Insurance.

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.

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. 

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.

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

Upon termination of an employment contract due to lay-off, an employer shall pay an employee compensation in the amount of one month’s average wage of the employee.

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 (unfair dismissal), 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.

All payments need to be paid out on the last working day.

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.

All outstanding payments need to be paid out on the last working day. The employment also has to be ended in the employees’ register at the tax authority (ask LPP to assist).