Estonia

Estonia, a digital-first nation in Northern Europe and a member of the European Union, Eurozone, and OECD, has earned global recognition for its streamlined bureaucracy, e-Residency program, and pro-business environment. With a highly educated, tech-savvy workforce and a flat tax system, Estonia offers one of the most business-friendly hiring environments in Europe, making it ideal for startups, remote teams, and global expansion.
Contractor Management
EOR
Payroll
Contractor of Record
Currency
Euro (EUR)
Payroll Frequency
Monthly
Employer Taxes
33.80%

Overview

Population
~1.3 million
Language
Estonian
Capital
Tallinn
Currency
Euro (EUR)
Country code
+372
Min wage
820 EUR/month gross
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Salaried Employees
Monthly, typically paid by the last working day of the month
Time-Based Employees
13th Salary

 Not mandatory but may be offered as a bonus

Avg employer tax

~33.8% of gross salary

Tax Breakdown

Social Tax (covers health and pension insurance)
33%
Unemployment Insurance
0.8% (for employer)
Mandatory Funded Pension (Pillar II)
Not paid by employer but deducted from employee salary if enrolled

Employee Contributions:

Unemployment Insurance
1.6%
Funded Pension (if enrolled)
2%

Personal Income Tax:

Flat rate
20%
Tax-free allowance
Up to EUR 654/month depending on income level

VAT

VAT

20%

Tax Calculation for Estonia
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Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Estonia typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

  • Must be in writing (in Estonian or bilingual if needed)
  • Must include job role, salary, working hours, vacation, benefits, and termination terms
  • Should be signed before the first working day

Registration with Authorities

  • Register the employee with the Tax and Customs Board (MTA) within 10 days of start date
  • Register them for social security and unemployment insurance

Document Collection

  • Personal ID number or residence permit
  • Bank account details
  • Tax-free allowance application (if applicable)

Equipment & System Access

  • Set up devices, payroll accounts, and digital tools
  • For e-residents or remote workers, provide onboarding support via digital ID and secure channels

Orientation & Compliance Training

  • Share employment policies, remote work guidelines, and safety protocols
  • Explain rights to paid leave, parental benefits, and sick leave

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Estonia
When drafting an employment contract for employees in Estonia, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • First 3 days unpaid
  • Days 4–8: Paid by employer at 70% of average wage
  • From day 9 onward: Paid by Estonian Health Insurance Fund at 70%
  • Medical certificate is required
Maternity leave
  • 100 calendar days, starting up to 70 days before expected due date
  • Paid at 100% of the average wage by the Estonian Health Insurance Fund
  • Additional parental leave can follow (see below)
Paternity leave
  • Fathers are entitled to 30 calendar days of paid paternity leave
  • Can be used within 30 days before or 6 months after childbirth
  • Paid by the Health Insurance Fund

Parental Leave:

  • Parents can share 475 days of paid parental leave per child
  • Paid at 100% of previous average salary (subject to caps)
  • Leave can be taken flexibly until the child turns 3

Annual Leave
  • Statutory 28 calendar days per year (includes weekends)
  • Leave accrues from the start of employment
  • May be carried over for 1 year if unused
11 Public holidays in Estonia
1st
New Year's Day
24th
Independence Day
28th
Good Friday
31st
Easter
1st
Spring Day
23th
Victory Day
24th
Midsummer Day
20th
Day of Restoration of Independence
24th
Christmas Eve
25th
Christmas Day
26th
Boxing Day
  • 1 Jan: New Year's Day
  • 24 Feb: Independence Day
  • 15 Apr: Good Friday
  • 17 Apr: Easter Sunday
  • 1 May: Spring Day
  • 5 Jun: Whit Sunday
  • 23 Jun: Victory Day
  • 24 Jun: Midsummer Day
  • 20 Aug: Independence Restoration Day
  • 24 Dec: Christmas Eve
  • 25 Dec: Christmas Day
  • 26 Dec: 2nd Day of Christmas

Termination Process

Grounds for Termination

  • Valid reasons include redundancy, performance issues, mutual agreement, or serious misconduct
  • Must be documented and follow Labor Contract Act requirements

Notice Period

  • Varies by tenure:
    • less than 1 year: 15 calendar days
    • 1–5 years: 30 days
    • 5–10 years: 60 days
    • 10 years: 90 days
  • Shorter notice applies if the employee resigns (30 days)

Severance Pay

  • Required in redundancy cases:
    • Employer pays up to 1 month’s salary
    • Additional compensation (1–2 months) paid by Unemployment Insurance Fund depending on tenure

Probation Period

  • Up to 4 months
  • Termination during probation requires 15 calendar days’ notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team
in Estonia with RemotePass

Estonia’s digital government and startup-friendly policies make it easy to build a distributed team—but compliance still matters. With RemotePass, you can onboard full-time employees and contractors in Estonia without opening a local entity. We handle contracts, social contributions, payroll, and offboarding, so you stay compliant and competitive.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Estonia.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

Free 7-day trial

No credit card required

Cancel anytime

Let’s Chat

Thank you! Your submission has been received!
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Estonia

العملة
Euro (EUR)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
33.80%

عن 

Estonia

Estonia, a digital-first nation in Northern Europe and a member of the European Union, Eurozone, and OECD, has earned global recognition for its streamlined bureaucracy, e-Residency program, and pro-business environment. With a highly educated, tech-savvy workforce and a flat tax system, Estonia offers one of the most business-friendly hiring environments in Europe, making it ideal for startups, remote teams, and global expansion.

ملخص

التركيبة السكانية
~1.3 million
اللغة
Estonian
العاصمة
Tallinn
العملة
Euro (EUR)
رمز الاتصال الدولي
+372
الحد الأدنى للأجور
820 EUR/month gross
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
40 hours per week

الرواتب

موعد صرف الرواتب

Monthly

متوسط ​​ضريبة صاحب العمل

~33.8% of gross salary

تحصيل الضرائب

التوزيع الضريبي - صاحب العمل
Social Tax (covers health and pension insurance)
33%
Unemployment Insurance
0.8% (for employer)
Mandatory Funded Pension (Pillar II)
Not paid by employer but deducted from employee salary if enrolled

Employee Contributions:

Unemployment Insurance
1.6%
Funded Pension (if enrolled)
2%

Personal Income Tax:

Flat rate
20%
Tax-free allowance
Up to EUR 654/month depending on income level
ضريبة القيمة المضافة

20%

العطل / PTO

العطلات الرسمية في عام 2024
  • 1 Jan: New Year's Day
  • 24 Feb: Independence Day
  • 15 Apr: Good Friday
  • 17 Apr: Easter Sunday
  • 1 May: Spring Day
  • 5 Jun: Whit Sunday
  • 23 Jun: Victory Day
  • 24 Jun: Midsummer Day
  • 20 Aug: Independence Restoration Day
  • 24 Dec: Christmas Eve
  • 25 Dec: Christmas Day
  • 26 Dec: 2nd Day of Christmas
الإجازات المرضية
  • First 3 days unpaid
  • Days 4–8: Paid by employer at 70% of average wage
  • From day 9 onward: Paid by Estonian Health Insurance Fund at 70%
  • Medical certificate is required
إجازة الأمومة
  • 100 calendar days, starting up to 70 days before expected due date
  • Paid at 100% of the average wage by the Estonian Health Insurance Fund
  • Additional parental leave can follow (see below)
إجازة الأبوة
  • Fathers are entitled to 30 calendar days of paid paternity leave
  • Can be used within 30 days before or 6 months after childbirth
  • Paid by the Health Insurance Fund

Parental Leave:

  • Parents can share 475 days of paid parental leave per child
  • Paid at 100% of previous average salary (subject to caps)
  • Leave can be taken flexibly until the child turns 3

إنهاء العقد

عملية الإنهاء

Grounds for Termination

  • Valid reasons include redundancy, performance issues, mutual agreement, or serious misconduct
  • Must be documented and follow Labor Contract Act requirements

Notice Period

  • Varies by tenure:
    • less than 1 year: 15 calendar days
    • 1–5 years: 30 days
    • 5–10 years: 60 days
    • 10 years: 90 days
  • Shorter notice applies if the employee resigns (30 days)

Severance Pay

  • Required in redundancy cases:
    • Employer pays up to 1 month’s salary
    • Additional compensation (1–2 months) paid by Unemployment Insurance Fund depending on tenure

Probation Period

  • Up to 4 months
  • Termination during probation requires 15 calendar days’ notice
فترة الإشعار

Notice periods in Estonia vary depending on length of service: During probation period – 15 days’ notice Between one and five years – 30 days’ notice Under one year – 15 days’ notice Between five and ten years – 60 days’ notice Over ten years – 90 days’ notice Employers also have the option of providing pay in lieu of notice.

مكافأة نهاية الخدمة

Employers must pay one month's salary to employees made redundant. Employees who have been with the employer for between five and ten years must also receive an extra month's salary from the unemployment insurance fund. Employees with over ten years' service are entitled to an extra month's pay on top of that.

فترة الاختبار

Probation periods are role-dependent and defined in employment agreements (up to a maximum duration of four months).

ازدهار القوى العاملة عن بعد في _

تحديات التوظيف عن بعد في _

تبسيط التوظيف عن بعد في _ باستخدام ريموت باس

حساب الضريبة

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EE
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري
GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي
GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
طلب عرض أسعار مفصل

Estonia

Estonia, a digital-first nation in Northern Europe and a member of the European Union, Eurozone, and OECD, has earned global recognition for its streamlined bureaucracy, e-Residency program, and pro-business environment. With a highly educated, tech-savvy workforce and a flat tax system, Estonia offers one of the most business-friendly hiring environments in Europe, making it ideal for startups, remote teams, and global expansion.
Contractor Management
EOR
Payroll
Contractor of Record
العملة
Euro (EUR)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
33.80%

ملخص

التركيبة السكانية
~1.3 million
اللغة
Estonian
العاصمة
Tallinn
العملة
Euro (EUR)
رمز الاتصال الدولي
+372
الحد الأدنى للأجور
820 EUR/month gross
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
40 hours per week

الرواتب

Salaried Employees
Monthly, typically paid by the last working day of the month
Time-Based Employees
13th Salary

 Not mandatory but may be offered as a bonus

متوسط ​​ضريبة صاحب العمل

~33.8% of gross salary

تحصيل الضرائب

Social Tax (covers health and pension insurance)
33%
Unemployment Insurance
0.8% (for employer)
Mandatory Funded Pension (Pillar II)
Not paid by employer but deducted from employee salary if enrolled

Employee Contributions:

Unemployment Insurance
1.6%
Funded Pension (if enrolled)
2%

Personal Income Tax:

Flat rate
20%
Tax-free allowance
Up to EUR 654/month depending on income level

ضريبة القيمة المضافة

ضريبة القيمة المضافة

20%

حساب الضريبة في Estonia
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
EE
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
طلب عرض أسعار مفصل
How it works

إعداد الموظفين

Onboarding in Estonia typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

  • Must be in writing (in Estonian or bilingual if needed)
  • Must include job role, salary, working hours, vacation, benefits, and termination terms
  • Should be signed before the first working day

Registration with Authorities

  • Register the employee with the Tax and Customs Board (MTA) within 10 days of start date
  • Register them for social security and unemployment insurance

Document Collection

  • Personal ID number or residence permit
  • Bank account details
  • Tax-free allowance application (if applicable)

Equipment & System Access

  • Set up devices, payroll accounts, and digital tools
  • For e-residents or remote workers, provide onboarding support via digital ID and secure channels

Orientation & Compliance Training

  • Share employment policies, remote work guidelines, and safety protocols
  • Explain rights to paid leave, parental benefits, and sick leave

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Estonia
When drafting an employment contract for employees in Estonia, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • First 3 days unpaid
  • Days 4–8: Paid by employer at 70% of average wage
  • From day 9 onward: Paid by Estonian Health Insurance Fund at 70%
  • Medical certificate is required
إجازة الأمومة
  • 100 calendar days, starting up to 70 days before expected due date
  • Paid at 100% of the average wage by the Estonian Health Insurance Fund
  • Additional parental leave can follow (see below)
إجازة الأبوة
  • Fathers are entitled to 30 calendar days of paid paternity leave
  • Can be used within 30 days before or 6 months after childbirth
  • Paid by the Health Insurance Fund

Parental Leave:

  • Parents can share 475 days of paid parental leave per child
  • Paid at 100% of previous average salary (subject to caps)
  • Leave can be taken flexibly until the child turns 3

Annual Leave
  • Statutory 28 calendar days per year (includes weekends)
  • Leave accrues from the start of employment
  • May be carried over for 1 year if unused
11 العطلات الرسمية في Estonia
1st
New Year's Day
24th
Independence Day
28th
Good Friday
31st
Easter
1st
Spring Day
23th
Victory Day
24th
Midsummer Day
20th
Day of Restoration of Independence
24th
Christmas Eve
25th
Christmas Day
26th
Boxing Day
  • 1 Jan: New Year's Day
  • 24 Feb: Independence Day
  • 15 Apr: Good Friday
  • 17 Apr: Easter Sunday
  • 1 May: Spring Day
  • 5 Jun: Whit Sunday
  • 23 Jun: Victory Day
  • 24 Jun: Midsummer Day
  • 20 Aug: Independence Restoration Day
  • 24 Dec: Christmas Eve
  • 25 Dec: Christmas Day
  • 26 Dec: 2nd Day of Christmas

فترة الإشعار

Grounds for Termination

  • Valid reasons include redundancy, performance issues, mutual agreement, or serious misconduct
  • Must be documented and follow Labor Contract Act requirements

Notice Period

  • Varies by tenure:
    • less than 1 year: 15 calendar days
    • 1–5 years: 30 days
    • 5–10 years: 60 days
    • 10 years: 90 days
  • Shorter notice applies if the employee resigns (30 days)

Severance Pay

  • Required in redundancy cases:
    • Employer pays up to 1 month’s salary
    • Additional compensation (1–2 months) paid by Unemployment Insurance Fund depending on tenure

Probation Period

  • Up to 4 months
  • Termination during probation requires 15 calendar days’ notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team
in Estonia with RemotePass

Estonia’s digital government and startup-friendly policies make it easy to build a distributed team—but compliance still matters. With RemotePass, you can onboard full-time employees and contractors in Estonia without opening a local entity. We handle contracts, social contributions, payroll, and offboarding, so you stay compliant and competitive.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Estonia.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

Free 7-day trial

No credit card required

Cancel anytime