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From
$249/month
$49/month
2% of gross salary / month
Horizons provides compliance solutions to ensure your business in Estonia operates in line with Estonian labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Estonia in a range of industries, from customer service, to accounting services, to software development.
We also process monthly payroll, and, as an Estonia Employer of Record, absorb all local employer liabilities. Partnering with our Estonia EOR is the quickest and most cost-effective way to enter the Estonian market.
Note, a Estonia Employer of Record is also known as a Estonia Professional Employer Organization (PEO).
Hire in Estonia, and pay employees through our platform or app.
Our Estonia EOR solution is the most affordable on the market.
Fast onboarding in Estonia, hire in as little as 24 hours.
We draft labor contracts compliant with Estonian labor law
We administer all mandatory benefits and contributions in Estonia.
It doesn’t stop with Estonia — we are an international EOR
Formal employment contracts are a legal requirement in Estonia. These contracts should be provided for every employee and include all relevant details of the employment agreement, such as working hours, description of duties, salary/wage, and so on. The contracts should always be written in Estonian and use the local currency of the Euro.
0 – 4 months
15 – 90 days, depending on service time
1 – 3 months’ salary
0 – 4 months
15 – 90 days, depending on service time
1 – 3 months’ salary
The normal working week for employees in Estonia is made up of five eight-hour days, totaling 40 hours per week.
Estonia has a range of national public holidays that are celebrated annually. In 2025 these holidays are:
| Date | Holiday name |
|---|---|
| 1 Jan 2025 | New Year’s Day |
| 24 Feb 2025 | Independence Day |
| 18 Apr 2025 | Good Friday |
| 20 Apr 2025 | Easter Sunday |
| 1 May 2025 | Labour Day |
| 8 Jun 2025 | Pentecost |
| 23 Jun 2025 | Victory Day |
| 24 Jun 2025 | Midsummer Day |
| 20 Aug 2025 | Independence Restoration Day |
| 24 Dec 2025 | Christmas Eve |
| 25 Dec 2025 | Christmas Day |
| 26 Dec 2025 | Boxing Day |
Generally, employees in Estonia are entitled to 28 days of paid vacation leave per year.
Workers in Estonia are entitled to up to 182 days of sick leave per year, which is covered at 70% of normal pay by both the employer and the state. From the fourth to the eighth days of absence, employers pay the compensation, and the state takes over payments for any following absence.
Female employees in Estonia can take up to 140 days of paid maternity leave, with the government paying the benefit during this time.
Fathers can take up to ten days of paid paternal leave, which is also covered by the government.
There is also a possibility to take parental leave up until the child turns three. This leave (in combination with maternal leave) has a limit of 575 days and is also covered by the state.
The standard notice period prior to termination for employees in Estonia is between 15 and 90 days, depending on how long they have been with their employer.
Upon redundancy, employees are entitled to a severance payment of one month of salary. For employees who have worked for between five and ten years, this payment is increased by one month of salary (covered by unemployment insurance), and if they have more than ten years of service then they receive two extra months.
Probation periods in Estonia have a limit of four months.
Employers in Estonia must contribute a percentage of salary toward employee benefit schemes. 20% must be contributed to pensions, and 13% to health insurance, totaling 33% on top of salary.
There is also an unemployment insurance scheme, to which employers must contribute 0.8% of salary, and employees must contribute 1.6%.
The income tax rate in Estonia is 20%. The corporate tax rate in Estonia is generally 20%, but this rate can vary in some circumstances.
Estonia has state-funded healthcare, so employers are not required or expected to offer private health insurance.
As of January 2024, the minimum wage in Estonia is €4.86 per hour.
| Minimum Wage Country Comparison Chart | (Per month in USD) |
| Switzerland (Geneva) | $4,000 |
| Italy | $2,255 |
| Australia | $1996 |
| Algeria | $156 |
| Uzbekistan | $22 |
Building a benefits system for your Estonian workforce can be difficult and complicated to navigate if you are not familiar with the country, its customs, and its employment laws. To set it up independently, it can take several weeks and potentially lead to unexpected delays.
Horizons can help to significantly simplify this step of your Estonia expansion by providing benefit management outsourcing. Our team can advise you and handle the setup of your benefits scheme, enabling you to focus on expanding your organization in Estonia.
Hire borderless talent with Horizons
With Horizons, you get quick service, transparent pricing, and expert support.
Generally speaking, the terms “Estonia PEO” and “Estonia EOR” are used interchangeably.
In most cases, Horizons’ Estonia EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Estonia.
It is possible to get a work visa in Estonia. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Estonia are limited, however—get started today to secure your employees’ visa spot.
Holiday Schedule in Estonia [2025]
