Hire and pay employees in
Estonia, hassle-free

The minimum wage is EUR 886 per month.

The employer cost is generally estimated at 33.8% of the employee salary.

• Social security tax - 33.0%
• Unemployment tax - 0.8%

Other costs:

• Medical check (onboarding and to be repeated every three years) - EUR 160  

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday.

Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Normally, full-time employees can work a maximum of 8 hours of overtime a week, for an average of 48 working hours per week. In agreement with the employee, the employee can work 12 hours of overtime a week, for an average of 52 working hours per week as a full-time employee. 

Employees are entitled to 182 days of sick leave in the event of disease or illness (except tuberculosis).
The first day is unpaid and considered as a qualifying period. In the event of a disease or injury, an insured person has the right to receive sickness benefits until the date on which their workability is restored (as specified in the certificate for sick leave).
Employees are eligible for 240 consecutive calendar days of sick leave in the event of tuberculosis.
Check this link for more information

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Estonia can be complex. There is no at-will termination in Estonia for employers, outside the probation period, and termination must be done for just cause.

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on if the employee:
  • Commits misconduct and breach of contract
  • Becomes bankrupt
  • Becomes of unsound mind
  • Is convicted of any criminal offense, prior to or in the course of employment
  • Fails to disclose in the employee’s resume any previous disciplinary or legal action taken against the Employee
  • Is permanently incapacitated by accident or ill health; unable to perform job duties
• By the expiration of the contract

In Estonia, the notice period is based on the length of the labor relationship.

• Up to 1 year of employment - minimum 15 calendar days
• Between 1 - 5 years of employment - minimum 30 calendar days
• Between 5 - 10 years of employment - minimum 60 calendar days
• 10+ years of employment - minimum 90 calendar days

In Estonia, severance is paid based on the reason for termination.

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Estonia celebrates 12 national holidays. National holidays include:

1. New Year's Day
2. Independence Day, anniversary of the Republic of Estonia
3. Good Friday
4. Easter Sunday
5. Spring Day
6. Pentecost
7. Victory Day
8. Midsummer Day
9. Day of Restoration of Independence
10. Christmas Eve
11. Christmas Day
12. Boxing Day

Contracts must be in Estonian, or English and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

• Name
• Personal identification or registry code
• Residence or seat of the employer and the employee
• Validity of contract
• Probation period
• Job description and job title
• Working hours
• Place of work
• Remuneration
• Obligations of the parties
• Vacation
• Termination conditions