Minimum Wage

General

In Estonia, the national minimum wage is 654 EUR per month and 3.86 EUR per hour.

Payroll

Payroll Cycle

The payroll cycle in Estonia is generally monthly, and payments must be made on the same day of the month and no later than the last working day of the month.

13th Salary

In Estonia, a 13th-month salary is not mandatory. However, bonuses are common and often paid annually.

Working Hours

General

The standard work week in Estonia consists of 40 hours a week, typically 8 hours a day for a five-day work week.

Overtime

All work above the standard working hours a week is paid as overtime and regulated by employment contracts/collective agreements. When an employee is requested to work overtime or work on holidays, there are no maximums in relation to the number of hours allowed except in the case of minors.

Working Week

Monday-Friday

Leave

Paid Time Off

In Estonia, the annual leave entitlement differs depending on the job role and employment contract/collective bargaining agreement in place. According to Section 55 of the Employment Contracts Act, an employee’s annual paid leave is 28 calendar days, unless the employee and the employer have agreed on a longer annual leave or unless otherwise provided by law.  For example, government officials are entitled to 35 days of annual leave, and academic and research staff receives 56 days of paid leave.

Public Holidays

There are 12 public holidays.

Sick Days

Employees in Estonia are entitled to up to 182 calendar days of paid sick leave paid at 70% of the employees’ previous years’ average salary. An employer must pay an employer for their sickness until the 9th day of sickness. The health insurance pays any sick leave in excess of 9 days.

Maternity Leave

Pregnant employees are entitled to 140 days maternity leave in Estonia, which can start at the earliest 70 days before the due date and has a minimum of 30 days.

Maternity leave is compensated at one hundred percent of average earnings, calculated based on employment in the previous calendar year, with no upper limit on payments. The minimum wage of 584 EUR per month is paid to mothers who had not worked in the last calendar year but then worked before the child’s birth.

The health insurance contributions fund the payment of the maternity pay at a rate of 100.00% of the employee’s average earnings based on the previous year’s earnings.  The minimum wage is paid to mothers who had not worked during the previous calendar year but then worked before the child’s birth.

When a child is born, an allowance of 320 EUR is granted; if triplets are born, the amount is 1,000 EUR per child.

Paternity Leave

Fathers are entitled to 10 working days of Paternity leave, taken within two months of the due date. After the birth, the father is entitled to 2 months’ paternity leave. Pay is based on the average wage of the employee. The father is entitled to 100% of their regular wages; however, this is capped at three times the minimum wage.

Parental Leave

In Estonia, paid parental leave can be taken until the child reaches the age of 3.  The mother or father can take 435 days of consecutive or non-consecutive leave. However, only one parent can take this leave at a time.

Other Leave

Depending on the Collective Agreement/Employment Contract terms, an employee may be allowed additional leave types, on approved between the employer and employee, for the following:

• Adopter’s leave: a person who adopts a child under the age of 10 is entitled to paid leave based on the employee’s average salary.
• Childcare leave: a mother or father can take paid leave (pay is equal to the minimum wage) and varies based on the age of the child:
• Up to 2 children under the age of 14 – 3 days of leave
• 3+ children under the age of 14- 6 days of leave
• For parents with a disabled child- the mother or father can take off an additional day of work each month until the child reaches the age of 18. This leave is also compensated based on the minimum wage.
• Study leave: An employee has the right to 30 days of study leave as prescribed in the Adult Education Act. 20 of the 30 days are compensated at the rate of the employee’s average salary.

Termination

Termination Process

Employers can terminate a fix term contract for the following reasons – business, personal, or workers misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given, and the employee gets a chance to explain actions.

Notice Period

In Estonia, the notice period is stipulated by the service that the employee has worked at a single organisation as follows:

• Less than one year – 15 days’ notice
• 1-5 years of employment- 30 days’ notice
• 5-10 years- 60 days’ notice
• 10+ years- 90 days’ notice

It is also possible to give pay in lieu of notice.

If an employer terminates employment during the probation period, the employer must give 15 days’ written notice.

Severance Pay

In cases of termination of the employment contract due to redundancy, the employer must pay compensation of one month’s salary payment (calculated on the employee’s average wage across the previous six months).

Employees with employment service of between 5 and 10 years are entitled to an additional one month’s salary from the unemployment insurance fund (Töötukassa); if the employees’ service is ten years or more, the employee is entitled to an additional one month’s salary from the unemployment insurance fund.

These provisions apply to an individual as well as collective dismissal cases.

Probation Period

The probationary period in Estonia is dependent on the type of role and is stipulated within the employment agreement.  However, probation periods can be no more than four months.

VISA

VISA

Business visitors to Estonia typically use a Schengen C Visa unless they are visa exempt based on their nationality or a treaty. The Schengen Area limits stay to 90 days in 180 days. The visa can be obtained at their nearest Estonian consular post or a Schengen member state consular post representing Estonia.

The main work authorization category is the Residence Permit for Employment, suitable for foreign workers with skills not locally available.​​​ Estonia also offers a Short-Term Employment Program for work activities for up to 12 months and a Digital Nomad Visa for remote work ​for up to 12 months.​​

VAT

General

The standard rate of VAT in Estonia is 20.00%