Estonia
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
Tallinn
- Currency
Euro (€, EUR)
- Languages
Estonian
- Population size
1,329,460
Facts & Stats
- Capital City
Tallinn
- Currency
Euro (€, EUR)
- Languages
Estonian
- Population size
1,329,460
- Ease of doing business
Very easy
- Cost of living index
$$$ (47 of 139 nations)
- Payroll frequency
Monthly
- VAT - standard rate
20%
- 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 new minimum wage effective January, 2025 is 5.31 euros per hour and a minimum monthly wage of 886 euros for full-time 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
Want to see and manage all holidays? Sign up for our free HRIS!
Effortless HR in Estonia: Take the Tour
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
Fair Pricing in Estonia
Employer of Record
US$599
paid annually, or $699/month paid monthly
Top features
Hire without opening a local entity
Guided onboarding
Local payroll paid on time, every time
Built-in security and compliance
Flexible, localised benefits
Offer equity incentives with tax assistance
Dedicated experts for local support
Contractor Management
Compliantly onboard and pay contractors
US$29
per contractor/month
Top features
Only pay for contractors you actively work with
Work with international contractors
Create, edit, and sign tailored, localised contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility
Payroll
US$29
per employee/month
Top features
Powerful, transparent international payroll
Simple self-service platform
Personalised support from dedicated specialists
Adhere to local payroll regulations in every country
Integrated payroll, expense management, and HRIS solution
Top features
Guided onboarding and offboarding
Employee profile and document management
Contract templates and e-signing
Time off and time tracking
Expense management
Employee and manager self-serve experiencea
Mobile app