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Hire compliantly inEstonia Talk to an Expert

POPULATION

1.4m

CURRENCY

€ (EUR)

CAPITAL CITY

Tallinn

Overview

Estonia, officially the Republic of Estonia, is a country in Northern Europe. Known for its digital society, innovative technology, and well-preserved medieval architecture, Estonia is a global leader in e-governance and cybersecurity. From the historic streets of Tallinn to the picturesque landscapes of Lahemaa National Park, Estonia offers a wealth of cultural and natural attractions.

Estonia's economy is highly developed, with key sectors including information technology, services, and manufacturing. The country is a major exporter of goods and a global leader in innovation. Estonia's skilled workforce and strong digital infrastructure make it an attractive destination for international business.

Disclaimer: This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

Local Employment Regulations

Last updated on March, 22nd, 2023

Employment Contracts

Employment contracts in Estonia should be written and must include details of the employee’s salary, benefits and termination clauses. The contract must also include both parties’ names and registry codes, responsibilities, workplace location, work hours, annual leave, notice period and workplace policies.

Working Hours

The standard workweek in Estonia is 40 hours over five days with eight-hour days. The workweek is capped at 48 hours over a four-month period including overtime. Employees receive 11 hours of rest over a 24-hour period or 48 hours over seven days.

Public Holidays

In Estonia, the public holidays are:

New Year's Day
Independence Day
Good Friday
Easter Sunday
Spring Day
Pentecost
Victory Day
Midsummer Day
Independence Restoration Day
Christmas Eve
Christmas Day
Boxing Day

Employment Termination/Severance

An employer must have a reason to terminate an employment contract in Estonia. The notice period depends on the employee’s length of service. The notice period is 15 days for employees with up to one year of service, 30 days for employees with up to five years of service, 60 days for employees with up to 10 years of service and 90 days for employees with more than 10 years of service. An employee terminates their employment contract by giving 30 days written notice, but can quit with no notice under limited exceptions.

Compensation

Estonia has a minimum wage. Performance-based bonuses are common.

Population 1.4m

70%

Urban Population

92.2%

Internet access

98.9%

Banking access

100%

Mobile phone access

DATA SOURCES

Population: The World Bank: World Development Indicators: World Bank Group • World Population Prospects, United Nations (UN), uri: https://population.un.org/wpp/, publisher: UN Population Division; Statistical databases and publications from national statistical offices, National Statistical Offices, uri: https://unstats.un.org/home/nso_sites/, publisher: National Statistical Offices; Eurostat: Demographic Statistics, Eurostat (ESTAT), uri: https://ec.europa.eu/eurostat/data/database?node_code=earn_ses_monthly, publisher: Eurostat; Population and Vital Statistics Report (various years), United Nations (UN), uri: https://unstats.un.org, publisher: UN Statistics Division

Urban Population: The World Bank: World Development Indicators: World Bank Group • World Urbanization Prospects, United Nations (UN), uri: https://population.un.org/wup/, publisher: UN Population Division

Internet access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU), uri: https://datahub.itu.int/

Banking access: The World Bank: World Development Indicators: World Bank Group • FINDEX, WBG (WB), uri: https://www.worldbank.org/en/publication/globalfindex

Mobile phone access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU)

Social Protection & Benefits

Last updated on March, 22nd, 2023

Vacation Leave

Employees receive 28 days of paid vacation leave in Estonia unless the employer and employee agreed on more leave time. In an employee’s first year, the leave available is in proportion to the portion of the year that the employee has worked. Employees are entitled to take leave after six months.

Sick Leave

Employees are allowed 182 calendar days of paid sick leave in Estonia. Employers pay for sick leave from the fourth to the eighth day of leave with government benefits available on the ninth day. Sick leave pay is 70% of the employee’s average salary.

Maternity/Paternity Leave

Female employees receive 100 days of paid maternity leave in Estonia and can start taking leave from as early as 70 days before the due date. Employees receive maternity leave pay, called the maternity benefit, from the government Health Insurance Fund. Male employees receive 30 days of paternity leave, which may be taken any time from 30 days before the birth until the child is three years old.

Health Insurance Benefits

Estonia has universal healthcare.

Unemployment 7.8%

65.3%

Labor force population share

49.5%

Female share of labor force

79%

Healthcare access

DATA SOURCES

Unemployment: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025.

Labor force (total): The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Labor force population share: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025

Female share of labor force: The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Healthcare access: The World Bank: World Development Indicators: World Bank Group • GHO, WHO (WHO), uri: https://www.who.int/data/gho/data/themes/topics/service-coverage