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Estonia Employment Guide

Your quick guide on talent and labor compliance norms in Estonia







Payroll Frequency


GDP per Capita


Employer Tax


Talent Overview

Estonia has a market-based economy and is currently the 7th freest economy in the world (with a freedom score of 80.0). Being a part of the European Union has worked in their favor as their economy heavily relies on trade. This allowed them to maintain strong economic ties with Finland, Sweden, and Germany. Moreover, Estonia’s telecommunications and electronics sectors have also contributed to its continued growth and development.

Major economic hubs:

Tallinn, Tartu, Narva

Skills in demand:

ICT professionals, Healthcare professionals, Legal

Map 8

Local Universities

The top local universities in Estonia are as follows:

Uni1 18

University of Tartu / Tartu Ülikool


Local: 1

World: 467

Uni2 17

Tallinn University of Technology / Tallinna Tehnikaülikool


Local: 2

World: 1119

Uni3 18

Tallinn University / Tallinna Ülikool


Local: 3

World: 1551

Uni4 17

Estonian University of Life Sciences / Eesti Maaülikool


Local: 4

World: 3052

Uni5 17

Estonian Academy of Arts / Eesti Kunstiakadeemia


Local: 5

World: 3126

Salary Data

The average monthly salary in Estonia from some major job roles are:

Job Title Average Monthly Salary (EUR) Average Monthly Salary (USD)
Financial Manager 5,420 EUR 6,085 USD
Chief Financial Officer 5,290 EUR 5,939 USD
Accounting Manager 4,070 EUR 4,570 USD
Business Development Manager 4,120 EUR 4,626 USD
Financial Analyst 3,520 EUR 3,952 USD
Customer Service Manager 1,050 EUR 1,179 USD
Talentsource 47

Talent Sourcing Tips

Top Local Job Boards,, eures

Number of LinkedIn users


Top Recruitment Agencies

Soshace, BrainAgency, Pconsult

Employing in Estonia

Employees in Estonia are characterized as highly skilled, making the country’s labor market a promising opportunity for global businesses. Additionally, labor laws and rules are easy and straightforward. Here are some things that employers need to know about employing in Estonia.

Employee Contract

The primary language used in employment contracts is the Estonian Language. However, the language of the contract can be in a foreign language if both parties agree to use such.

Probation Period

Employees in Estonia are given from 1 to 4 months of probation period.

Public and Provincial Holidays

Date Name Type
1 Jan New Year’s Day National Holiday
24 Feb Independence Day Government Holiday
29 Mar Good Friday National Holiday
31 Mar Easter Sunday National Holiday
1 May Labor Day / May Day National Holiday
19 May Pentecost National Holiday
23 June Victory Day National Holiday
24 June Midsummer Day National Holiday
20 Aug Independence Day National Holiday
12 Oct Our Lady of Aparecida / Children’s Day National Holiday
24 Dec Christmas Eve (from 2pm) Government Holiday
25 Dec Christmas Day National Holiday
31 Dec New Year’s Eve (from 2pm) Government Holiday

Employee Leaves:

Type of Leave Duration Mandatory
Annual Leave 28 days Yes
Sick Leave 30 days Yes
Maternity Leave 140 days  Yes



Payroll 1

Payroll Cycle

Employees in Estonia are paid once a month.

Payroll 2

Minimum Wage

The minimum hourly wage in 2023 is 4.30 EUR (gross) and the minimum monthly wage is 725 EUR.

Payroll 3

Overtime Pay

The standard working hours in Estonia are 48 hours per week. Overtime work should not exceed over 8 hours within a 7 day period. The period of overtime may offset work days unless employers agree to compensate the employee’s extra work with money. If so, Overtime is compensated at a rate of 1.5 times the wages.


13th Month Pay

A 13th-month pay is not mandatory in Estonia.

Employee Benefits

Estonia offers a lot of benefits for their employees. Below are some of them:

  • Maternity leave
  • Paternity leave
  • Pension system
  • Employment Insurance
  • Health Insurance
  • Dental Care


Employer Payroll Tax

Category Rate
Pension 20.00%
Health Insurance 13.00%
Unemployment Insurance 0.8%

Employee Payroll Tax

Category Rate
Pension 2%
Unemployment Insurance 1.6%

Employee Income Tax

Estonia has a flat rate of 20% for all items acquired through income.


The country’s standard VAT is 20%. However, it can be reduced by 9% for certain commodities such as books and periodicals, medicines and medical equipment, accommodation, and sanitary and toiletry products.

Offboarding & Termination

Termination in Estonia can take place in three ways:

  • Immediate Termination – An employer terminates the contract immediately due to misconduct
  • Employee Resignation – Employees can send a written resignation between 14 days and 1 month
  • Termination with notice – The employee agreement determines the notice period.

Probationary employees’ notice period depends on the contract between the employee and employer, while non-probationary employees have up to 15 – 90 days.

If the contract is terminated due to redundancy, the employer must pay compensation of one month’s average wage for the employee’s last six month’s salary. For employment terms between 5 and 10 years, an additional one month’s pay has to be given.

Visa and Immigration

Estonia belongs to a part of the European Union (EU), and foreign workers belonging to the EU need no visa to enter the country. If they are to work and stay in Estonia for more than three months, they only need to apply for a residence permit at the Population Register of Estonia and secure an Estonian ID card.

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Minimum Wage

Overtime Pay

Visa & Immigration

Non-EU citizens must apply for a Schengen D-visa and a residence permit to stay and work for more than three months in the country.

Additionally, Estonia launched a Digital Nomad visa last August 1, 2020, to encourage remote workers to travel to the country and work there. It allows foreigners to work in Estonia legally even when their employers or business is registered abroad.