Hiring in Estonia

Estonia’s tech-savvy talent and digital economy are ideal for growth, but its employment laws need attention. Omnipresent, as your Employer of Record (EOR), ensures compliance with TSD rules, no entity required.

Our EOR services manage payroll, benefits like 28 days of leave, and taxes, letting you oversee teams in Tallinn or Tartu hassle-free. We provide a tech-driven approach tailored to Estonia’s forward-thinking market.

• Quick, compliant hiring.
• Payroll in EUR, locally managed.
• Local expertise on wages.
• Seamless growth support.

Employer costs include Pension, Health Insurance, and Unemployment Insurance. Use the OmniCalculator to estimate costs, or contact us for further information.

20% flat rate.

Employee contributions include Mandatory Funded Pension and Unemployment Insurance.

The typical work week in Estonia consists of 40 hours per week or 8 hours per day. Usual work days are Monday to Friday. Overtime laws in Estonia are complex and can depend on the specific circumstances and the employee.

The first 3 days of sick leave in Estonia are unpaid. From day 4 through to 8 the employer pays a percentage of the employee's salary. After that employees are entitled to eligible sickness benefits provided by the state, subject to certain conditions. 

Maternity Leave

Estonia has strong pregnancy and maternity leave regulations including 140 days of leave, all of which are paid at 100% salary by the Health Insurance Fund.

Paternity Leave

Paternity leave in Estonia includes 30 days paid leave that can be taken 30 days prior to birth and until the child’s third birthday.

Unpaid Childcare Leave

It’s common for Eastern European countries to allow full-time unpaid childcare leave from the end of maternity leave until the child is aged 3. Estonia allows for 10 unpaid childcare leave days per year until the child reaches 14 years of age.

Employees in Estonia are entitled to 28 calendar days of paid leave per year if they've completed at least six months of work.

Upon termination of an employment contract due to lay-off, an employer shall pay an employee compensation in the amount of one month’s average wage of the employee.

Severance pay will usually be required in Estonia in case of termination of employment. For fixed-term employees, severance pay is equal to 1 months’ average salary. For termination due to a breach by the employer (unfair dismissal), severance pay is equal to 3 month’s average salary.

Employees with between 5 - 10 years of service are entitled to an additional 1 month’s salary from the Unemployment Insurance Fund (Töötukassa) and employees with 10+ years of service are entitled to an additional 2 months salary from the Fund.

All payments need to be paid out on the last working day.

For termination of an employment contract in Estonia, a written notice and explanation of the termination is required. The valid grounds for termination are found within the Labour Law.

Termination can be challenged within 30 days as of receipt of the termination notice.

All outstanding payments need to be paid out on the last working day. The employment also has to be ended in the employees’ register at the tax authority (ask LPP to assist).