Remote’s guide to employing in

estonia flag

Make employment in Estonia easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Estonia, all in one easy-to-use platform.

  • Capital City


  • Currency

    Euro (€, EUR)

  • Languages


  • Population size


Services available in this country:
Employer of Record ProductContractor Management

Facts & Stats

Estonia Map Illustration
  • Capital City


  • Currency

    Euro (€, EUR)

  • Languages


  • Population size


  • Ease of doing business

    Very easy

  • Cost of living index

    $$$ (47 of 139 nations)

  • Payroll frequency


  • VAT - standard rate


  • GDP - real growth rate

    5.0% (2019)

The Republic of Estonia (Eesti Vabariik) is a European Union member, organised as a unitary parliamentary republic.

For a country with a population of less than 2 million, Estonia’s GDP ranks well above average at 37 on the global scale, driven by membership in the EU, and a flourishing, innovative tech sector. Estonia is a progressive nation with a healthy local economy, a high human development index, and a stable democracy —all of which make this Easter European nation an attractive proposition for international employers.

Estonia is a well-established destination for digital nomads and remote workers, with many coworking spaces, and quality internet connectivity.

Grow your team in Estonia with Remote

Looking to employ workers in Estonia? Companies hiring in Estonia must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in Estonia on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Estonia team. You can also pay contractors now in Estonia with Remote.

Risks of misclassification

Estonia, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Estonia may lead to fines and penalties for the offending company.

Employing in Estonia

Estonian labour regulations are liberal in principle but provide strong worker protections designed to safeguard workers’ rights in practice. Employees in Estonia enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.

Common questions that could come up during the hiring process may be about minimum wage, overtime rates, and paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Estonia.

Minimum Wage

The Estonia government mandates a minimum wage of €820 per month, or €4.86 per hour for hourly work.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.

Onboarding Time

We can help you get a new employee started in Estonia fast. The minimum onboarding time we need is only 4 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

12 Public holidays

Monday 1 January 20241New Year's Day (Uusaasta päev)
Saturday 24 February 20242Independence Day (Iseseisvuspäev)
Friday 29 March 20243Good Friday (Hea reede)
Sunday 31 March 20244Easter (Lihavõtted)
Wednesday 1 May 20245Spring Day (Kevadpäev)
Sunday 19 May 20246Pentecost (Nelipühad)
Sunday 23 June 20247Victory Day (Võidupüha)
Monday 24 June 20248Midsummer Day (Jaanipäev)
Tuesday 20 August 20249Restoration Independence Day (Taasiseseisvumispäev)
Tuesday 24 December 202410Christmas Eve (jõuluõhtu)
Wednesday 25 December 202411Christmas Day (jõulud)
Thursday 26 December 202412Boxing Day (Teine jõulupüha)

Competitive benefits package in Estonia

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practising “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Estonia are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Taxes in Estonia

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Estonia.

  • 13%

    Health Insurance

  • 20%

    Pension Insurance

  • 0.8%

    Unemployment Insurance

Types of leave

Employees are entitled to 28 paid days off and should any of those leave days fall on a public holiday, the paid leave will be extended so employees are not shortchanged.

Employment termination

Termination process

A working relationship can be terminated in cases of gross employee misconduct, willful employee resignation, or a winding down of the relationship as prescribed in the employment contract.

Notice period

Depending on the duration an employee has worked with an employer, the latter should provide written notice to the employee well in advance of termination of the working relationship.

  • Less than 1 year of employment: at least 15 calendar days

  • 1 t0 5 years of employment: at least 30 calendar days

  • 5 to 10 years of service: at least 60 calendar days

  • 10 or more years of service: at least 90 calendar days

Severance pay

If a redundant employee is terminated, the employer should pay the average of the previous six months’ salary as severance pay.

Fixed-term employees are entitled to the wages for the remainder of the contract’s term if they’re terminated.

The situations where severance pay is triggered are outlined in Estonian employment legislation as follows:

  • Where the termination is due to redundancy, the employee is entitled to six months of salary

  • Employees who have been employed for five to 10 years are entitled to one additional month of gross salary

  • Employees who have been employed for 10 years or more are entitled to two additional months of gross salary

  • Employees with fixed term contracts that were terminated due to redundancy are entitled to the wages that they would have received until the date of termination of the contract

Probation periods

Probation periods can last up to four months but cannot exceed half of the term of an employment contract. That is, if an employment contract lasts for three months, the probation period cannot exceed six weeks.

An employer should provide notice at least 15 days before terminating a contract that’s still in the probation stage.

Fair Pricing in Estonia

Employer of Record

Hire and pay your global team

Starting at USD 599/month

for annual plans

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localised benefits

Contractor Management

Compliantly onboard and pay contractors

USD 29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

USD 50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you


Manage all of your employees in one place

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Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app