Working and Labour Market - Settle in Estonia programme

Working and Labour Market

HANDBOOKS

Private and Public Services

Estonia: State, Society and Language

Working and Labour Market

My rights and Responsibilities

Networking, Volunteering and Leisure time

Children and Family

Kindergarten and Schools

Higher Education and Research

Residence and Citizenship

Business and Entrepreneurship

1. Estonian Working Environment

1.1. What are the main industries?

1.2. How does the Estonian labour market look like?

1.3. What are the characteristics of Estonian work culture?

2. Useful Tips for Securing a Job in Estonia

2.1. What is expected of my CV?

2.2. What should I write in my cover letter?

2.3. What should I keep in mind during the job interview?

2.4. How to grow my network in Estonia?

2.5. Tips and information on jobs available in Estonia

3. Salary and Taxes

3.1. How is my salary fixed in the contract?

Special conditions for overtime and night-time work?

What else should my employer compensate?

3.2. What taxes do I need to be aware of?

Tax residency

Income tax

Social tax

Unemployment Insurance Premium

Deductions

Tax return

Bank account

4. Working rights and contracts

4.1. What is the legal basis for working in Estonia?

What applies to me as an EU citizen?

What applies to me as a non-EU citizen?

Can I work with an European Union Blue Card?

Can I work in Estonia short-term?

Are there any exceptions?

When am I not allowed to work in Estonia?

4. Working Rights and Contracts

4.1. What is the legal basis for working in Estonia?

What applies to me as an EU citizen?

What applies to me as a non-EU citizen?

Can I work with an European Union Blue Card?

Can I work in Estonia short-term?

Are there any exceptions?

When am I not allowed to work in Estonia?

4.2. Can I work as a student?

Is there a study leave?

Working after studies in Estonia

4.3. Employment contract

What should my employment contract include?

What is the basis for terminating a contract?

What is working with a fixed-term contract?

What is the probationary period?

What is the contract for services?

4.4. Other employment relationships

Practical training

Internships

Trial day

Volunteering

5. Skills

5.1. Do I need to speak Estonian?

5.2. Can I drive in Estonia?

5.3. How can I develop my skills?

6. Social Security While Working

6.1. How is working time regulated?

6.2. When am I allowed to go on vacation?

How are holiday schedules set up?

When will I receive holiday pay?

6.3. Who has health insurance in Estonia?

How do I know if I am insured?

What if I get sick while working?

Am I allowed to take sick leave when my child is ill?

Is medical treatment abroad covered by the insurance?

6.4. How is the pregnancy and maternity leave regulated?

Are there parental benefits?

What other type of childcare leaves are there in Estonia?

6.5. How are labour disputes resolved?

6.6. Who represents the workers?

6.7. What happens if I become unemployed?

What is the unemployment insurance?

What is the unemployment allowance?

Application process

Can I receive benefits from another country?

Estonian Unemployment Insurance Fund

6.8. How can I receive a pension?

I pillar: State pension

II pillar: Funded pension

III pillar: Supplementary funded pension

5. Skills

5.1. Do I need to speak Estonian?

5.2. Can I drive in Estonia?

5.3. How can I develop my skills? 4. Working rights and contracts

4.1. What is the legal basis for working in Estonia?

What applies to me as an EU citizen?

What applies to me as a non-EU citizen?

Can I work with an European Union Blue Card?

Can I work in Estonia short-term?

Are there any exceptions?

When am I not allowed to work in Estonia?

INTRODUCTION

Dear reader,

Thank you for participating in the “Settle in Estonia” programme. Our programme has been designed for foreigners who have decided to move to Estonia and our courses have been available to new arrivals since 2015. Whether your reason for choosing Estonia is based on your family connections, work, study or business interests, our programme is here to help you settle in and nd your feet in a new country.

The handbook you currently have in front of you is designed to act as a reference point you can use even after the course has nished. We hope it will be useful to you during your rst years in Estonia and will help you nd the correct and up-to-date information on the subject you are interested in. The handbook is updated on a regular basis to make sure the information contained in it is accurate. You can nd the details of the current issue on the back cover. When new versions become available, you can nd them on the website: issuu.com/settleinestonia

This handbook is your go-to guideline for working in Estonia. It provides you with useful tips and advice on how to orientate yourself in the Estonian labour market. Questions like “How can I work in Estonia?”, “What characterizes the Estonian work-culture?”, “How to grow my network in Estonia?”, “How to act in a job interview?” and many more are answered.

The handbook explains regulations concerning salaries, working time and vacations. It explains the social security system as regards to health insurance, unemployment bene ts and parental bene ts. It explains the legal basis for working in Estonia, both as a EU citizen as well as a non-EU citizen. Di erence between a temporary residence permit for work and short-term employment are explained. Conditions applying to students are covered.

Relevant elements of the employment contract and the termination of an employment contract are elaborated. The di erences between internships, trial days and voluntary work are covered. Knowledge of the Estonian language and drivers licenses are covered as much as they relate to working in Estonia. Finally, information is provided on where to get consulting and trainings to further develop your career in Estonia.

This handbook does not provide information on entrepreneurship. If you are interested in the Startup Visa, e-Residency programme, startup ecosystem, or how to found your own company and what kind of ( nancial) support there is for that, then you should take a look at the “Business and entrepreneurship” handbook.

Tere tulemast Eestisse! Welcome to Estonia! Head lugemist! Have a good read!

1. ESTONIAN WORKING ENVIRONMENT

Estonia is a small country, and this shapes the economy and labour market. Considering the size of Estonia and the work culture, it may be easier to move up on a career ladder and to achieve self-actualisation in Estonia than in some other places. Part I, therefore, provides a brief overview of the Estonian economy, labour market and Estonian work culture.

1.1. WHAT ARE THE MAIN INDUSTRIES?

Estonian economy is quite diverse and one single area cannot be brought out as the key industry. As of 2023, 19% of all in employees Estonia were working in the industrial sector. In mechanical engineering Estonia has a 25-year track record of high-value production, testing and assembly for global markets. Estonia has a full value chain for R&D, prototyping, and production of precision components and complex systems, and is trusted by ABB, Ericsson and the European Space Agency.

Other large areas of work are whole-sale and retail trade (13%), construction (9%) and education (10%). Estonia has a sizeable food industry which bene ts from ecological raw materials, skilled workers and modern production facilities.

Many interesting developments are happening in various sectors. Estonia promotes itself globally as an innovative IT-country and there is a general understanding, that information- and communication technology skills are needed throughout the economy and in almost every profession.

Estonia also ranks among the top countries in Europe for the number of startup companies per capita (83 companies per 100 000 inhabitants) and has a vibrant startup ecosystem. So far, Estonia has produced ten billion-dollar unicorns: Skype, Playtech, Wise, Bolt, Pipedrive, Zego, ID.me, Gelato, Veri and Glia.

Estonia has become a global centre of excellence for FinTech. 80+ FinTechs ranging from innovative startups such as Wise to Blockchain leader Guardtime are established in Estonia.

Estonia has a sizeable Advanced Industrial sector and world-class IT expertise in areas including high tech systems, control technologies and cyber security. World leading cyber security companies such as CGI, Symantec and Malwarebytes use Estonia as a base to research, develop and manage consumer, enterprise and government solutions. Guardtime, the world’s largest Blockchain company, trust Estonia to provide their cryptographers, developers and security architects.

Estonia has one of Europe’s largest bioeconomies, including world leading expertise in forest-based activity. Supported by high-quality natural resources, ultra-high use of IT and supportive policy-making, Estonia o ers a range of production and innovation opportunities.

Estonia has a collaborative ecosystem for Industrial R&D including academia, accelerators and competence centres.

Where to get more information

Invest in Estonia provides a nice sector based overview of the current developments and “main players”. See more at: investinestonia.com

1.2. HOW DOES THE ESTONIAN LABOUR MARKET LOOK LIKE?

The country’s population is around 1,365 million people and of that around 695 thousand people were working in Q2 2023. Due to the small and ageing population, the future prognosis predicts a decrease of around 50 000 working people by the year 2040 and a growing shortage in workforce.

In general, Estonia has had a relatively low unemployment rate - ranging between 3,9% to 5,2% during the years 2018-2020 and growing to 7,3% by Q3 2023. The unemployment rate is highest among young people with basic education and smallest among people with higher education.

Estonian average gross salary in 2023 Q2 was 1873 EUR. It was highest in the information and communication and nancial and insurance activities sectors. Lowest salaries were paid in real estate activities, other service activities and accommodation and food service activities. Minimum gross salary in 2023 for full-time work is 725 EUR/month (4,3 EUR/hour). In 2024 it will raise to 820 EUR/month. By location, salaries are highest in Tallinn, Harjumaa and Tartu.

In 2023 the industries that have most vacancies are: public administration and defence; wholesale and retail trade; education; processing industry; information and communication. Most vacancies (80%) are in Tallinn and Harjumaa.

Where can I nd more information on the labour market?

In case you wish to know about the potential of a speci c profession or a skill, it is worth checking out the analyses of the OSKA centre (EE: ), that bring out the needs for labour and skills necessary for Estonia’s economic development over the next 10 years. Available at: oska.kutsekoda.ee. Short-term labour demand forecast is available at tootukassa.ee/en/barometer/map

Where to get more information

If you wish to nd more statistics and more detailed gures about the Estonian economy, business structure or anything else for that matter, then visit the Statistics Estonia (EE: ) website stat.ee

1.3. WHAT ARE THE CHARACTERISTICS OF ESTONIAN WORK CULTURE?

To be successful in the Estonian work environment you should understand the local work culture and the reasons why people behave in work-related situations the way they do. Having a basic understanding of the values underlying Estonian work culture helps to prevent possible confusion and misunderstandings.

Work has a very important role in Estonian culture and the worldview of Estonian people. Being hard working is considered a virtue and in many organisations a person is always expected to be on top of work tasks.

A. H. Tammsaare Writer

Work hard and love will follow.

Estonian working culture is generally task oriented. Estonians are highly organized planners who complete action chains by doing one thing at a time, preferably in accordance with a linear agenda.

Time is very important to Estonians. Always be punctual or arrive a bit earlier. Estonians disapprove of being late and you may be considered unreliable or unprofessional if you arrive late. If you cannot avoid being late and you know you will be late, make sure you call in advance and let the other person know as soon as possible. The same applies for deadlines – you are expected to deliver results by the time that you have promised.

Estonians try to avoid obscurity. Estonian people tend to be direct and to the point in communication – small talk and formalities are often seen as a waste of time. For Estonians speech is for information exchange and they talk and listen in equal proportions. Estonians are brief on the telephone and respond quickly to written communication.

Estonians are truthful rather than diplomatic and do not fear confrontation, sticking to logic rather than emotions. They are results-oriented and like to move quickly forward, compromising when necessary to achieve a deal. E iciency is prioritised over emotions.

Feedback is not given very often. Feedback is expected to be honest and not sugar-coated. Positive feedback is quite rare as doing your job well is considered to be the standard and not worth pointing out. Feedback is usually given if something is not good and needs to be improved. Negative feedback is mainly constructive and based on facts, it is common to give it one-on-one and not in front of bigger teams.

Estonians value rules, regulations, structure, and stability. Estonians are law-abiding and have faith in structures to guide their conduct. They honour contracts and do not unduly delay payment for goods or services received. When doing business, they are keen on punctual performance, good quality and reliable delivery dates.

Taking responsibility for your actions is important in Estonian society. Estonia is a relatively individualistic country, where a person is thought to be responsible for own success or failure. You make your own decisions, so you are responsible for the consequences. You are expected to be independent and show initiative.

Men and women or people from di erent generations are treated equally in Estonia and at workplace. Discrimination is not allowed. You should treat other people respectfully and the same way as you wish to be treated.

As the country is small, the work-related structures in Estonia are less hierarchical and more exible. Power distance in Estonia is usually small –interaction from subordinates to bosses to suggest changes or ideas is encouraged and common. This means that people prefer consulting, participation, collaboration, and e iciency instead of basing decisions and actions on status or preferring strong hierarchy in management.

At work, people are evaluated by their objective skills and experiences and friendships or relatedness play a relatively small role in lling vacancies or selecting business partners. Status is gained through achievement.

Is work life really so gloomy in Estonia?

Considering the above you might be worried that you will end up working among emotionless robots or high-achieving perfectionists that have no interest in getting to know you. This is not the case either. Fun and friendly colleagues are loved, and you should not conceal your true character. Just make sure that the work gets done on time too.

In Estonia, establishing close friendships takes longer than in many countries, and out-of-work time is usually spent with family. Colleagues often go to lunch together. If you are new in a team, ask coworkers can you join them. From time to time, companies hold out-of-hours events to strengthen team bonds or celebrate important events. This a great opportunity to get to know your co-workers.

2.

USEFUL

TIPS FOR SECURING A JOB IN ESTONIA

There are usually four main components to landing a job in Estonia – a CV, a cover or motivation letter, a job interview and local network. This section provides tips on all of these.

2.1. WHAT IS EXPECTED OF MY CV?

CV is the rst medium through which a potential employer meets you. Thus, it is important to make sure that your CV is up to date, properly prepared and nice to look at. There is no one xed template to use, but some of the advice listed below can help you avoid easy mistakes.

1. In Estonia a CV should not exceed 2 pages.

2. Adding a photo is not compulsory. If you do add a picture, make sure that it looks professional.

3. Send the CV from a professional e-mail address that consists of your full name, do not use nicknames or other random words.

4. Display your education by starting with the most recent experiences. Save space by leaving out your primary schools. Be prepared to prove your education with o icial documentation.

5. Highlight your previous work experience by pointing out the key responsibilities at the job and the most important competences and experiences that you gained previously. If applicable, point out the same skills as listed in the job advertisement. However, do not exaggerate your language or other skills.

6. Use correct grammar and punctuation. Even small mistakes like this may give the impression that you are a lazy or unpunctual person and hence not the best candidate for the role.

7. If you are already in Estonia, make sure to point it out – highlight your local address and Estonian phone number. This helps the employer to understand that despite your potentially foreign-sounding name you are in Estonia and ready to start working.

8. It is wise to add a hyperlink to your LinkedIn pro le into your CV. This will save the recruiter from additional online search, which may be especially di icult, if there are a number of people with the same name as yours. But make sure that your LinkedIn account is also accurate and up to date. Having local professionals in your network helps to build trust and may even give the employer a chance to ask for reference from mutual contacts. LinkedIn also allows you to display additional interests, experiences and traits that do not t in a short 2-page CV. Besides LinkedIn, also make sure that you leave a trustworthy impression of yourself in other social media channels.

2.2. WHAT SHOULD I WRITE IN MY COVER LETTER?

A cover letter or a motivation letter is your chance to directly speak to the employer and let them know why you are the best candidate for the role. It is a supplement to your application, that allows you to explain things brought out in the CV.

Make sure to always prepare a unique letter for each application. Applicants, who send generic cover letters starting with “To whom it may concern” and with an impersonal description of your past, are automatically set aside. Avoid generalisations and show your suitability for the speci c position.

The cover letter should be short, not longer than 1 page.

2.3. WHAT SHOULD I KEEP IN MIND DURING THE JOB INTERVIEW?

Each job interview is unique and shaped by the interviewer as well as the candidate. But being prepared will increase your chances for success. Much of what was said about the Estonian work culture also applies to interviews. Here are a few basic tips:

1. Do research on the company and the position – learn about the company’s history and values and analyse, why you would t in the organisation and what would be your advantages.

2. Be punctual and arrive a few minutes earlier.

3. Dress politely, but do not exaggerate with make-up, jewellery or perfume. Wearing a hat inside is considered impolite.

4. Be ready to talk about your experiences, strengths and weaknesses. Provide examples and do not generalize. You are expected to be honest and people who boast too much about how well they can do everything might not always seem sincere to the recruiter.

5. Be polite and to the point in communication. Keep in mind that the interviewer is not your friend, but a professional. Keep small talk to a minimum and avoid discussion topics such as politics, religion, family, too much personal information or money troubles.

6. Pay attention to what the interviewers are telling you and re ect what you heard. If necessary, make notes. Be respectful towards the interviewers even if they are younger than you.

7. Show your interest towards the role and company and be willing to ask additional information about the position if a chance is given for that.

8. It is not required to post the salary information within a job listing. But knowing what a reasonable range could be puts you in a better position at negotiations during a job interview. In Estonia, it is expected to leave it up to the interviewer to raise this topic. If possible, have them mention a range that they are willing to pay, but be prepared to say a number too.

9. Pay attention to your language, if necessary, practice English or do a bit of “warm up” talking before the interview. As English is not the rst language for most local employers, try to express yourself clearly and try to re ect the language use of the interviewer.

10. Body language in uences how you are perceived. It is not good to lean on walls or furniture, keep your hands in your pockets or crossed on your chest, chew a gum or dget on a chair. Be con dent, smile and look the interviewer(s) directly in their eye.

11. Thank the interviewer for their time and ask when you could expect to hear back from them.

Keep in mind that online video interviews are increasingly common. You can leave a better impression if you minimize distractions, clear your background, and use a microphone and earphone. Being punctual and dressing properly applies here as well.

2.4. HOW TO GROW MY NETWORK IN ESTONIA?

Estonia is so tiny that networking can be particularly helpful here. Many vacancies are lled through personal references. Consciously growing your professional network in Estonia will increase your access to information and make you a more trusted candidate.

Recommendations and feedback from your network can be mentioned in a CV or job interview and may play an important part in getting a position. Try to use local references instead of foreign.

You can grow your network through your friends and their contacts, by joining organizations and associations, by volunteering, and by connecting with people through professional social media such as LinkedIn.

Your hobbies can also help to build a useful network in Estonia. If you are singing in a choir or attend a triathlon club, do not underestimate the people surrounding you there. Find out what they do for a living and see how these connections could support you.

2.5. WHERE CAN I FIND MORE TIPS AND INFORMATION ON JOBS AVAILABLE IN ESTONIA?

A lot of vacancies are advertised publicly (on job mediation portals, social media or websites of the companies), but a big number of positions are also lled through personal contacts and acquaintances. Hence it is important to grow your network, so that people could recommend you too.

The Work in Estonia portal is a gateway for foreigners interested in working in the country. It contains a lot of useful information about coming to Estonia, working and living here. The website also compiles job o ers that have been posted in English at the most popular job portals in Estonia. Read more on workinestonia.com

CV-KESKUS (cvkeskus.ee) –

The Estonian Unemployment Insurance Fund (EE: ) provides mediated job listings as well as career counselling services. See the chapter on the Estonian Unemployment Insurance Fund for more information on career services and the link below tootukassa.ee/en/jobo ers

one of the most visited job mediation portals in Estonia.

CV-Online (cv.ee) –one of the leading job portals and recruitment partners in the Baltics.

GoWorkaBit – o ers small “work bites” in di erent elds. Find out more on: goworkabit.com

LinkedIn (LinkedIn.com) – it is de nitely important to create a LinkedIn account, as this professional social media platform is used a lot by Estonian companies and recruiters.

MeetFrank app (meetfrank.com) – an Estonian hiring application, that brings together job seekers and employers with the required skills and salary expectations.

Facebook – you can have a look at the “Expat Jobs in Tallinn” group or also follow the websites of organisations that interest you – sometimes employers share their vacancies through their social media. You might also want to keep your own Facebook pro le presentable or private as some recruiters or employers might do a brief background search on you there.

Websites of companies – don’t forget to look at the “we’re hiring” section on the websites of the companies that interest you.

3. SALARY AND TAXES

Raha murrab rauda

Money breaks the iron

In Estonia, when salaries are discussed, generally people mean gross salaries. This also applies for the wages that are brought out on job listings, when having wage-negotiations or writing the salary into your employment contract. You should keep in mind that income tax and unemployment insurance premium are deducted from that and the amount that will be transferred to your bank account will be the net income. This section covers the essential elements about payments and taxes related to your salary.

3.1. HOW IS MY SALARY FIXED IN THE CONTRACT?

Remuneration, i.e. your salary, is an obligatory condition to be set out in an employment contract. You and your employer must agree on the salary paid for your work. The employment contract must state the following:

Salary agreed upon signing the employment contract, incl. the pay depending on economic results and transactions (as gross amount);

The manner of calculating your salary (time-based or item-based);

The manner of payment (bank transfers or cash payments);

The pay day (at least once per month);

The taxes and contributions withheld from your salary.

Additionally, it can be agreed in the employment contract what share of the overall salary is made up by the base salary, additional pay, bonuses, added pay, bene ts, etc. All bene ts (additional pay) are clearly stated parts of the remuneration. The employer is obligated to keep clear and detailed accounts of the remuneration and to present these accounts to you upon your request.

If your employment contract states that you have the right to receive a part of the employer’s pro t or turnover then your part is calculated on the basis of the employer’s approved annual report. Your part must be paid out within 6 months from the approval of the annual report.

If it is agreed that you have the right to receive agent’s commissions on mediation or preparation of contracts, the employer must pay that in compliance with the Law of Obligations Act. Earnings for economic results and transactions are parts of the overall salary.

Did you know?

If a payday is a national holiday or a rest day, then the payday is the workday preceding it.

The employer must pay you:

Average salary while you are in work-related training;

Average salary while the employer does not provide you with work;

Salary for the time that you perform trustee’s duties;

Average salary while you are unable to work due to personal reasons (being at a physician, in a state authority, at a funeral, etc.).

Can my employer lower my salary?

This is possible in rare and extreme occasions. The employer has the right to subject you to the national minimum salary for up to 3 months in a year if unforeseen temporary economic hardship independent from the employer occurs. The rights and obligations of the parties in that case are:

The employer must inform you about the salary reduction 14 days in advance and initiate consultations to discuss the subsequent work arrangement;

Before reducing your salary, the employer must o er another job if possible;

You have the right to refuse to perform work duties proportionally to the reduction of the salary;

You have the right to cancel the employment contract with a 5-day advance notice and to receive redundancy compensation (1 month’s average remuneration from the employer, the rest from the Estonian Unemployment Insurance Fund).

3.1.1. Special conditions for overtime and night-time work

There are indeed special cases of paying your salary. Over-time work, night-time work and work on national holidays should be compensated with a higher remuneration or as extra rest time.

Over-time work must be compensated with time o equal to overtime, unless you have agreed with your employer that overtime is compensated in money.

In case of monetary compensation, the employer shall pay 1,5 times the agreed salary for over-time work, 1,25 times the agreed salary for working during nights (between 22:00 and 06:00) and 2 times the agreed salary for working on national holidays.

NB! You and your employer may agree that your xed salary already includes the pay for night-time work, in which case the 1,25x coe icient does not apply.

Type

of work

Over- time work

Night- time work

National holiday

Remuneration

Time o equal to the overtime (or x 1.5 monetary compensation if agreed with you)

x 1.25 (may be compensated as rest time if agreed with you)

x 2 (may be compensated as rest time if agreed with you)

3.1.2. What else should my employer compensate?

The employer must compensate all reasonable expenses that you have incurred when performing work duties. It is forbidden to compensate these expenses on account of your salary.

A daily allowance must be paid in case of business trips abroad. In case of business trips within the country, you have the right to demand the compensation of expenses (e.g. transport, communication, accommodation, etc.). You have the right to demand prepayment and to refuse to go on the business trip if no prepayment is made.

You and your employer may agree in writing that the employer makes additional expenses for your training (in addition to the obligatory costs) and that you work for the employer for a certain time in order to compensate those expenses (a bound period – not more than 3 years). You must compensate the employer’s incurred additional costs proportionally to the time left until the end of the bound period if:

you cancel the employment contract before the bound period passes (except if the reason for cancelling the employment contract is the employer’s violation of the employment contract);

the employer cancels the employment contract before the bound period passes and the reason for the cancelling is your violation of the employment contract.

NB! An agreement with a minor to compensate training expenses is void.

3.2. WHAT TAXES DO I NEED TO BE AWARE OF?

The Estonian taxation system is more straightforward than in most other countries. Several convenient e-solutions have been created to le tax reports and to communicate with the Tax and Customs Board (EE: ). In 2019, for example, 96.3% of tax declarations were led electronically. Estonians generally have a good tax discipline and a high sense of duty concerning the payment of taxes.

In Estonia, taxes are automatically withheld from your gross salary by your employer each month, which means you don’t have to make additional payments or le monthly tax returns related to your salary. You will just receive the net salary on your bank account.

When it comes to working in Estonia, the most important taxes to be aware of are the income tax, social tax and unemployment tax.

There are other state and local taxes that you can acquaint yourself with on the Tax and Customs Board website: emta.ee

3.2.1. Tax residency

People who have lived in Estonia for more than 183 days within a period of 12 months, are considered tax residents of Estonia.

Residents pay income tax on their worldwide income. Non-residents (i.e. people who live in Estonia for less than 183 days per calendar year) pay tax only on their income received from Estonian sources.

For the determination of the residency for tax purposes, ‘the days when a person was physically present’ will only be taken into account for calculating 183 days. The counting starts from the certi ed time of arrival in Estonia.

Example:

If you stay in Estonia from 1 January to 2 July (i.e. 182 days) and then on 31 December for one more day, then you will be deemed to be a resident from 1 January to 31 December (also in the period from 3 July to 30 December).

The tax authority decides on the change in your status from a resident to a non-resident or vice versa. To formalize your tax residency, you should submit a lled and signed “Application Form for Determination of Residency” (also named as Form R) to the Estonian Tax and Customs Board. By the said form you may solve the problem of double residency that can arise due to di erent rules for the determination of residency for tax purposes in di erent countries. The tax authority may also decide about your residency based on the data collected on its own initiative only. For a comprehensive explanation of the process, please consult the Tax and Customs Board website at: emta.ee/en/private-client/e-resident-non-resident/residency

3.2.2. Income tax

The income tax rate is 20%.

Taxable income includes income from employment, business income, interest, royalties, rental income, capital gains, pensions, and scholarships (except scholarships nanced from the state budget or paid on the basis of law). Taxable income does not include dividends paid by Estonian or foreign companies when the underlying pro ts have already been taxed.

Estonia has implemented a system that a tax-resident has a right to earn an overall tax-free amount (basic exemption) of up to 7848 euros per year or 654 euros per month. This exemption is applied to all types of income. The person has a right for this exemption in case their annual income is up to 14 400 euros. In case the person’s annual income increases and falls between the amounts of 14 400 to 25 200 euros, the basic exemption decreases proportionally according to the following formula: 7848 – 7848 ÷ 10 800 × (income amount – 14 400). People whose annual income exceeds 25 200 euros do not have a right for basic exemption.

Example of tax exemption calculation:

With the annual income of 17 100 euros, basic exemption 4500 euros is calculated as follows:

17 100 – 14 400 = 2700

7848 ÷ 10 800 = 0,72666

0,72666 × 2700 = 1962

7848 – 1962 = 5886 euros

Good to know:

In case you have an Estonian ID-card you can always log into the Estonian Tax and Customs Board e-service portal and check your yearly income and potential income tax liabilities (in case you have over-used your basic exemption).

3.2.3. Social tax

In addition to the income tax, your employer must pay social tax amounting to 33% of your gross salary. Bear in mind, this is the tax for the employer that is based on your actual salary; it’s not subtracted from your salary.

Social tax is a tax used for pension insurance (20%) and health insurance (13%). The social tax, therefore, gives you important bene ts – social security during retirement and health insurance coverage in Estonia. The social tax paid for you is also used to calculate your maternity bene t, sickness bene t or parental bene t. Unemployment insurance bene t calculation is based on your unemployment insurance contributions. See the chapter on social security for more details.

You should never accept undeclared cash payments, if an employer o ers such. It is illegal in Estonia to pay or receive untaxed salaries. Besides being a legal o ence, receiving your salary undeclared will not give you any social security bene ts.

3.2.4. Unemployment Insurance Premium

In addition, people working in Estonia pay an unemployment insurance premium that is paid by both the employer and the employee – 1.6% of the employee´s gross salary is withheld and the employer pays 0.8%.

How can I have a clear overview of the taxes paid from my salary?

If the former was a bit confusing and you do not feel at home with these mathematical calculations, you can always use the virtual calculator available at calkoo.com/en/salary-calculator

The calculator is updated every year as regulations might change.

See for example the calculator results of all taxes related to a person whose gross salary is 1,000 EUR. The calculation can be made without the now voluntary II pillar pension (see the section on pensions for more details).

3.2.5.

Deductions

The most important items you can deduct from your taxable income are (limitations exist in each of the cases - please check the exact details on the Tax and Customs Board's website):

Interest payments on the mortgage of your permanent residence (until 31.12.2023 - still valid for the year 2023 tax declaration submitted between February and May 2024)

Education expenses of you and your children

Donations to certain charities

Deductions based on your contributions to the supplementary funded pension

Deductions based on number of children (starting from the 2nd child, until 31.12.2023 - still valid for the year 2023 tax declaration submitted between February and May 2024)

The above deductions from taxable income can be made in a sum of up to 1,200 EUR per year.

3.2.6. Tax return

If you have only received income from regular employment in Estonia and aren’t expecting any deductions, you won’t have to le a tax return at all. In case you are eligible for any tax deductions you will need to le a yearly tax return.

All the taxes in Estonia can be declared via E-tax/e-customs, which is an electronic service desk of the Estonian Tax and Customs Board. Please note that E-tax/e-customs works 24 hours a day and 7 days a week.

Did you know?

Declaring taxes is very quick in Estonia. Filing a yearly tax return usually takes a couple of minutes. Most of these return forms are pre- lled by the tax service and often you only need to con rm with your digital signature that all the details are correct.

If you need to le a yearly tax return, that is usually done at the beginning of each year to report your previous year’s income. The deadline for the yearly tax return is May 2. The Estonian Tax and Customs Board has detailed information on who must le a return, and how it is done: emta.ee/en/private-client

3.2.7. Bank account

In Estonia, most money transactions take place through bank transfers (including salary payments and payments of state fees). Therefore, it is strongly recommended for every resident to open a bank account. You can open a bank account in most commercial banks and the terms and conditions applied to current accounts are relatively similar in all of them.

Residents, as well as non-residents of Estonia, may open an Estonian bank account. As a resident, to open a bank account in Estonia, you need to go to a bank in person with your Estonian ID-card. If you work in Estonia, it is recommended also to bring your employment contract – the bank may ask you for the contract in some cases.

Certain restrictions apply to non-residents when opening bank accounts, e.g. extra fees or longer processes. Before you receive your Estonian temporary residence permit, you can open an international Wise Borderless bank account and get a debit card.

You can nd more information about banking in the handbook on public and private services.

4. WORKING RIGHTS AND CONTRACTS

This section of the material discusses matters related to the legal basis for being allowed to work in Estonia, employment contracts and various employment relationships. You might also want to consult the handbook on residence and citizenship for more information on the legal rights of staying in Estonia.

4.1. WHAT IS THE LEGAL BASIS FOR WORKING IN ESTONIA?

A foreigner has the right to work in Estonia with a right of residence or a residence permit. Also, registered short-term work is allowed. No separate work permits are issued in Estonia.

It is strongly recommended that you consult directly with the Estonian Police and Border Guard Board (EE: ) before submitting your application.

Where to get more information

Estonian Police and Border Guard Board provides detailed and up-to-date advice in Estonian, English and Russian about all immigration formalities.

The PPA immigration advisory service working hours are Mo-Fri 09:00-15:00. Tel: +372 612 3500. The website address is politsei.ee and direct e-mail is migrationadvice@politsei.ee

4.1.1. What applies to me as an EU citizen?

If you are an EU citizen, then you can start working in Estonia without any special permit, just like locals. You do not have to apply for a separate work permit to work in Estonia. However, your employer does have to register your employment at the Tax and Customs Board for which you need to have an Estonian personal identi cation code, i.e. an ID-code (EE: ).

Keep in mind that as an EU citizen, there are only three things that you have to do to stay in Estonia legally. This is called a “right of residence”:

1. Applying for an ID-code - the local government o ice shall provide you with a unique 11-digit personal identi cation code, as this is needed for submitting your information to the Population Register. If you are working in Estonia for a period of less than 5 days, there is no need for an ID-code, and you can register using your date of birth.

2. Registering your residence - as an EU citizen you may live and work in Estonia for up to 3 months without registering a temporary right of residence. You acquire a temporary right of residence upon registering your place of residence in Estonia.

3. Applying for an ID-card – as an EU-citizen you need to apply for the ID-card at latest one month after the registration of residence in Estonia.

Please consult the “Residence and citizenship” handbook for more details.

Did you know?

The ID-card is a compulsory internal identity document for Estonian citizens. An ID-card is also issued to EU citizens who hold the right of residence in Estonia. In addition to regular identi cation purposes, the ID-card can also be used for e-services and for providing digital signatures.

Important!

In case you are an EU citizen, but your family members are not, then keep in mind that they may work in Estonia only if they have been granted a temporary or permanent right of residence as a family member of an EU citizen. See more on that in the handbook on residence or family and children.

4.1.2. What applies to me as a non-EU citizen?

Foreigners living in Estonia on the basis of a residence permit (non-EU citizens) usually have the right to work in Estonia. In case you already have a job proposal by an Estonian company, you can apply for a temporary residence permit (TRP) for work. The TRP is issued for up to 5 years and extended for up to 10 years. The number of granted TRPs each year are subject to the immigration quota of Estonia which is set at 0,1% of Estonian permanent population in one year.

The application must be submitted personally. This can be done either in an Estonian embassy or in Estonia at the Police and Border Guard Board’s service centre. In both cases you should make an appointment in advance.

Good to know:

You can nd detailed information about the application process (including all relevant forms) on the Police and Border Guard Board website. If you wish to submit the application directly at a service centre in Estonia, you can make an appointment here: broneering.politsei.ee

Usually, a foreigner needs to earn at least the Estonian average salary (1685 EUR gross in 2022) in order to receive a residence permit for work. In some exceptional cases, this salary requirement is not followed (e.g. people who work in o icially recognised start-ups, teachers and lecturers in Estonian schools and universities, actors and musicians in Estonian national theatres, etc.).

Usually a residence permit for work is given to foreigners to work for one concrete employer. A foreigner may simultaneously work for several employers but must always continue to work and ful ll the employment conditions for that employer which is mentioned on the decision regarding the residence permit. This employer’s registration code is also printed on the foreigner’s residence permit card.

In case a foreigner has lived in Estonia for 5 years with a TRP for work then there is an option to apply for a long-term residence permit.

Temporary residence permit for entrepreneurship and for start-up founders have their own unique rules. You can read about them in the Entrepreneurship handbook.

Can I work in Estonia if I have a visa?

If you are staying in Estonia with a visa or without a visa requirement then you may work in Estonia if:

Your short-term working is registered in the Police and Border Guard Board;

You perform management or supervision functions as a management body member of a legal entity registered in Estonia.

4.1.3. Can I work with an European Union Blue Card?

The European Union (EU) Blue Card is a residence permit for employment, issued to a foreigner to live and work in Estonia in a position requiring high quali cation. Work requiring higher quali cation is work requiring knowledge and skills proven by a higher professional quali cation.

To apply for an EU Blue Card, you must get your foreign diplomas recognised by the Estonian ENIC/NARIC Centre at Education and Youth Board. The required educational quali cation must be at least three years of required nominal duration. You can also apply for the EU Blue Card if you have more than ve years of work experience in the required eld. Documents proving work experience are assessed by the Police and Border Guard Board.

Before applying for an EU Blue Card, your employer must either sign an employment contract with the term of at least one year with you or must make a job o er to you with which the employer expresses the will to be legally bound to the contract being signed and undertakes to employ you for at least one year. Again, it must be clear in the contract that the position requires a higher quali cation. Additionally, the employer must meet the salary criterion throughout the term of validity of the EU Blue Card.

A foreigner may be unemployed for one period of up to 3 months during the term of validity of the EU Blue Card.

The conditions for starting to work for a new employer are set out on the Police and Boarder Guard Board website. More information on the EU Blue Card can be found at ec.europa.eu/immigration

4.1.4. Can I work in Estonia short-term?

You can come to Estonia and work here without a residence permit if your short-term employment is registered at the Police and Border Guard by your employer. This can be done for up to 12 months during any 15 months, i.e. 365 days during 455 days. Short-time employment for participation in seasonal work can be registered for up to 270 days during a year.

General requirements for the registration of short-term employment:

You need to have the required quali cations, education, state of health, work experience and the necessary professional skills and knowledge to assume the work position.

Your employer is registered in Estonia.

Your employer shall pay you a salary at least equal to the annual average gross monthly salary in Estonia (1685 EUR gross in 2022).

Other special conditions apply depending on the job. These can be found at: politsei.ee/en/teenused/working-in-estonia/ registration-of-short-term-employment/

The employer must register your short-term employment before you start working and before you apply for a visa.

According to of the Aliens Act § 1762 since 2023 a temporary residence permit for short-term employment may be granted to an alien for up to two years in case:

the alien with a temporary basis of stay has been employed in Estonia for at least nine months on the basis of the registration of short-term employment immediately before applying for a residence permit;

employment continues with the employer who has registered short-term employment, and who has registered the short-term employment of the alien with a temporary basis of stay before applying for a temporary residence permit;

the employer is reliable;

the employer has paid the alien remuneration in compliance with the requirements.

Please read more about this opportunity in the Aliens Act that you can nd at riigiteataja.ee

The fact that the short-term employment has been registered does not give you the right to travel to Estonia; you might still need a visa. You must have a valid visa or be from a country where visa free travel to Schengen area is permitted. List of countries is available here: www.vm.ee/ en/consular-visa-and-travel-information/ visa-information/who-does-not-need-visa-visitestonia#in-addition-to-the-c

4.1.5. Are there any exceptions?

In certain elds, a foreigner may work in Estonia without a residence permit for employment while having a visa or a residence permit issued by a competent authority of a state party of the Schengen Convention and having the right to work in that state party, if:

He or she starts working in Estonia due to the company relocating to Estonia;

He or she has a legal basis for staying in Estonia;

His or her period of working in Estonia does not exceed 90 days within 12 consecutive months.

4.1.6. When am I not allowed to work in Estonia?

You are not allowed to work in Estonia if:

You have been granted a temporary residence permit based on su icient legal income. Starting from 2012 it is no longer possible to apply for a temporary residence permit in the existence of su icient legal income, however, those who are already holding a valid residence permit under this condition, can extend the residence permit on the same terms and conditions on which they applied for the residence permit.

You are in Estonia without a legal basis, including being obligated by an administrative act or a court decision to leave Estonia. You are in Estonia on a legal basis (e.g. visa-freedom or visa) but you have no legal right to work in Estonia.

4.2. CAN I WORK AS A STUDENT?

Working while studying is very common in Estonia. If you are an EU student, i.e. a foreign student with the right of residence, then you are allowed to work during studies, just like Estonian students.

If you are from a third country, i.e. a non-EU country, then you are granted a residence permit for full-time study. You may also work in Estonia without applying for a separate permit, on the condition that the work does not hinder your studies – you must complete at least 75% of the curriculum. If you are unable to meet the full-time study requirements, your residence permit given for studying shall be revoked, where upon you must leave the country. Therefore, consider carefully whether you have the capacity to study and work at the same time.

4.2.1. Is there a study leave?

Employed students are eligible for a study leave. In order to go on study leave you must provide the employer with the university’s con rmation about your student status.

As a student you have a right to request 30 calendar days of study leave in a calendar year. During the study leave, you are paid a study leave pay for 20 calendar days, based on your average calendar day’s salary. The remaining 10 days are unpaid.

It is possible to take a further 15 days of study leave once to complete your studies. During this period, you will be paid the minimum salary in Estonia. If the completion is unsuccessful, then the employer may refuse to grant a study leave for the completion of the same curriculum next year. Therefore, be sure to complete your studies the rst time around! However, even if the completion is unsuccessful, you still retain the right to an annual study leave of 30 calendar days.

4.2.2. Working after studies in Estonia

Every citizen of the EU has the right to live, work, look for a job, and retire in any of the 27 European Union member states. The European Union rules of free movement of workers also apply in the European Economic Area countries (Iceland, Liechtenstein, and Norway) and in Switzerland.

Students from third countries can stay in Estonia for 270 days after their residence permit’s validity ends (e.g. to nd a job). To work after completing your studies, you must submit a new application for a residence permit for employment. To do this you must nd a suitable job and your employer must generally apply for a permit from the Unemployment Insurance Fund for hiring a foreign national. Exceptions apply to students who have received a degree or a diploma from a school or university in Estonia. Please check the website of the Police and Border Guard Board for details.

Another opportunity to stay connected with Estonia after your studies is to become an e-Resident of Estonia. e-Residency is explained in length in the business and entrepreneurship handbook. Alternatively you can check: e-resident.gov.ee

4.3.

EMPLOYMENT CONTRACT

When starting to work, it is very important to sign a written contract setting out the rights and obligations of both the employee and the employer, as well as other signi cant matters concerning the work. You and your employer will need to follow the terms and conditions of the employment contract. The existence of a contract provides you with a certainty that agreements

38 are kept and also serves as a clear basis for solving any disputes. An oral employment contract may be entered into only for employment lasting less than two weeks.

Employment contracts in Estonia are governed by the Employment Contracts Act (EE: . The natural person (employee) works for the other person (employer) under the employment contract in subordination to the management and supervision of the employer. The employer takes the responsibility to pay and compensate the employee for such work (this means, pay you the salary).

Work-related relations may be agreed in di erent types of contracts –an employment contract (EE: ), a contract for services (EE: ) or an authorization agreement (EE: ). An employment contract may be signed for a xed term or an inde nite term. Work conditions may be agreed not only in the employment contract but also in a collective agreement. Collective agreements are not so much widespread in Estonia, but it is still worth nding out whether there is one when starting to work. Find more on contracts on eesti.ee website under “Work and labour relations”.

4.3.1. What should my employment contract include?

The written employment contract must include at least the following:

Details of both parties (name, personal identi cation code or registration code, residence or domicile);

Date of conclusion of the employment contract and employee’s starting date;

In case of xed-term employment contract, the duration of the contract and the basis for entry into the xed-term contract;

The o icial title or professional title or quali cation requirements and job description;

Place or region where the work is to be performed;

Wage conditions (the remuneration, additional bene ts, the basis for calculating the remuneration, the procedure for payment and pay day, what are the charges and taxes to be paid and withheld by the employer);

Working hours during which the employee is to perform the duties agreed upon;

Length of the employee’s leave;

Duration of the probationary period;

Training provided by employer;

Noti cation of working conditions;

Reference to the term(s) for advance notice concerning termination of employment contract;

Reference to the collective agreement, if a collective agreement applies to the employee;

Taxes will be withheld from the salary indicated in the contract – that is why the sum that will be transferred to your bank account will be smaller than the one written in the contract!

An employment contract is provided in duplicate original copies, one of which is kept by the employee and one by the employer.

An employment contract may be amended and changed only between a mutual agreement between you and your employer. Changes to the terms of an employment contract are formalised in writing in the employment contract. If there is a dispute, both parties have the right to turn to a labour dispute committee (EE: ) or court (see relevant chapter for more information).

4.3.2. What is the basis for terminating a contract?

There are various options for terminating an employment contract.

By agreement of the parties: The parties – this means you, the employee, and the employer – may terminate the employment contract at any time if it is so agreed. To terminate an employment contract by agreement, one party (EE: ) must make a relevant proposal to the other party and the other party must express his or her unambiguous consent. To avoid later disputes, the termination of the employment contract by agreement should be formalised in writing.

By cancellation: An employment contract must be cancelled with a cancellation statement issued in a format reproducible in writing. Any cancellation ignoring that form requirement is void, i.e. invalid and does not have legal force.

The cancellation of an employment contract must not be conditional, which means that the cancellation of an employment contract must not be connected to a circumstance the arrival of which is not certain. This means that the cancellation argument cannot be a situation that could take place in the future. The statement must indicate the basis for the cancellation and the end date of the employment.

Cancellation is divided into ordinary cancellation (EE: ) and extraordinary (EE: ), depending on who starts the process.

An employee can cancel an employment contract by way of ordinary cancellation, informing the employer 30 calendar days in advance. If the employee informs about the employment contract’s cancellation for less than 30 calendar days in advance, the employer has the right to demand that the employee pay compensation for the number of days that the advance noti cation period was shorter.

An employee may cancel an inde nite-term employment contract, but also a xed-term employment contract signed for the purpose of substituting for an absent employee. No xed-term employment contract signed for any other reasons can be cancelled by way of ordinary cancellation. In case of ordinary cancellation, the employee does not have to provide the employer with reasons for the cancellation.

Extraordinary cancellation of an employment contract is permitted only with good reasons and respecting the advance noti cation periods set out in the law. Both parties may cancel an employment contract in extraordinary manner for a good reason. Extraordinary cancellation of an employment contract must be reasoned by the party presenting the cancellation statement and the reasoning must be stated in a format reproducible in writing or in written format.

An employer may cancel an employment contract for economic reasons if it becomes impossible to continue the employment relationship under the agreed conditions due to reduced work volumes or work reorganisation or other cases that conclude the work. In this case, the employer must o er other work to the employee, if possible. The employer shall, where necessary, organise the employee's in-service training or change the employee’s

working conditions, unless the changes cause disproportionately high costs for the employer. The employees’ representative and an employee who is raising a child under three years of age have preferential right of keeping their job.

The employer must inform the employee about extraordinary cancellation for the following number of days, if the employee’s employment relationship with that employer has lasted for:

Less than 1 work year – at least 15 calendar days;

1–5 work years – at least 30 calendar days;

5–10 work years – at least 60 calendar days;

10 and more work years – at least 90 calendar days.

Reasons stemming from the employee may be that the employee:

Is unable to continue working due to his or her state of health for a long time;

Cannot cope with work duties due to insu icient knowledge or skills;

In spite of a warning, has ignored the employer’s orders;

Has been at work in a state of intoxication;

Has stolen, defrauded, damaged the employer’s property;

Has caused mistrust;

Has violated the obligation to keep secrets and con dentiality.

4.3.3. What is working with a xed-term contract?

A xed-term employment contract may be signed only for a justi ed reason and for the time of performing work that has a temporary nature, for example in case of a temporary increase of work volumes, to perform seasonal work or to substitute for an absent employee. Therefore, it must be known at the time of signing a xed-term employment contract that the agreed work will end.

In the employment contract, the employer must clarify the reasons for signing a xed-term employment contract so that the employee understands it. A xed-term employment contract may be signed for up to ve years or for the duration of substituting for an absent employee.

For Estonians, everything is measured in the amount of work.

No more than two xed-term employment contracts may be signed for work of a similar nature, and a xed-term employment contract may be extended only once in the ve-year period. If a third consecutive contract is signed for work of a similar nature or a contract is extended for the second time then it is considered that the employment contract has an inde nite validity term since its signing. Contracts are consecutive if the time between one contract’s end and the other’s beginning does not exceed two months.

What happens when the term expires?

Only a xed-term employment contract can be terminated by expiry of its term. According to the law, the parties do not have to inform each other of the arrival of the term’s expiry but common sense dictates that it is preferable that the employer remind the employee about the nearing of the term’s expiry.

If the employee continues working after the contract’s term expires then the contract is considered to have an inde nite term, except if the employer expresses a wish to the contrary within ve days after the employer became aware or should have become aware that the employee continues to ful l the employment contract. To avoid later disputes, the termination of an employment contract by expiry of its term should also be formalised in writing.

Maire Aunaste Journalist

4.3.4. What is the probationary period?

The goal of a probationary period (EE: ) is to provide you and your employer time to assess each other. This means, this time is meant for you to see and understand whether your job tasks and assignments can be done with your skills and knowledge, and for the employer, this period of time is meant to ensure that your skills and knowledge matches the expectations by the employer to this job you are assigned to . In short, during the probationary period, the employer assesses your suitability for the agreed work while you can gure out your willingness to work in that position.

The maximum duration of a probationary period is 4 months. With an employment contract, the parties may agree in writing that the probationary period is not applied or if this is shortened (for example, lowered to 3 or even less months). During or immediately after the probationary period, the employment contract may be terminated.

You and your employer may cancel a xed-term or an inde nite-term employment contract during the probationary period, informing the other party 15 calendar days in advance. Suppose you or your employer informs about the cancellation for a shorter period in advance. In that case, either you or your employer is entitled to compensation in the amount of your average workday’s remuneration for each workday that the advance noti cation period was shorter.

You do not have to provide the employer with reasons for the cancellation of an employment contract during the probationary period.

4.3.5. What is the contract for services?

The contract for services (EE: ) is the second most common form of employment besides an employment contract. By a contract for services, the contractor undertakes to carry out some kind of work and the customer undertakes to pay remuneration therefor. The contract of services shall describe the work to be provided, specify the remuneration and the term of the work.

A thing produced as work shall be delivered to the customer by the contractor. The work shall comply with the terms of contract and the contractor shall bear the risk of accidental loss until the delivery. If work does not conform to the contract, the customer may give a chance to improve the work or perform a substitute work.

The customer does not have to pay before he or she has had a chance to examine the work, unless agreed otherwise.

Health insurance is valid for those whose social tax is paid for at least in the minimum rate of monthly obligation for social tax.

A person working by a contract of services has no right to the holidays provided by the Employment Contracts Act (like base holiday, study leave). At the same time the employee carries out work at a freely selected time but on time.

4.4. OTHER EMPLOYMENT RELATIONSHIPS

The following forms of employment relationships are allowed in Estonia, but only in very speci c cases.

4.4.1. Practical training

According to Estonian law, practical training (EE: ) in a company or authority is possible in two cases. First, if a vocational school refers a student to practical training of the vocation or profession being learned.

Second, this is possible if a person uses the apprenticeship service provided by the Estonian Unemployment Insurance Fund (EE: ). The apprenticeship service is meant for registered unemployed people, jobseekers who have received a redundancy notice, and in certain cases people in their retirement age. The purpose of apprenticeship is to provide the trainee with practical work experience that is necessary for recruitment and to allow them to gain additional professional skills and knowledge at the employer. Apprenticeship lasts as long as is necessary to acquire the practical skills needed for work, but no more than four months. During the apprenticeship, the employer is compensated for the supervision and the trainee gets a small scholarship.

Practical training is not the same as internship. See next subchapter.

4.4.2. Internships

Having an internship is a mandatory part of many university curricula. Internships (EE: ) are a great way to enter the labour market and practice theoretical knowledge obtained at school in a real work environment.

In Estonia, doing and completing internships is highly favoured by employers. Besides gaining new skills and earning credits for school, it also helps to show diligence and commitment to the subject, build a network and understand the local work life. Work experience and reference letters from local employers go a long way in building trust and credibility when applying for a job in Estonia.

Am I allowed to intern?

Students, who hold a residence permit for studying, have a right to do both paid and unpaid internships and there is no need to additionally register the internship with the Police and Border Guard Board. The only requirement that applies is that the internship cannot hinder the full-term studies of the student. Internships by non-EU students in Estonia are regulated by the Aliens Act (EE: ).

How are internships set up?

Internships are not very strictly regulated across di erent universities, even though it is a compulsory part of several curriculums. Internship is typically done under the supervision of an instructor appointed by the organisation that it is done at, and the intern is usually given a set of goals and tasks. The rules of the university and the characteristics of the curriculum will dictate whether a student shall nd an internship himself or herself, or if the school does it. In these cases, the internship must comply with the instructions provided by the school and sometimes this can involve special requirements or documentation.

However, you can be an intern even when your curriculum does not require it. It is not mandatory to sign an agreement for the internship period, but it may be done, if wished – in such a case either an internship agreement or a contract for services is signed. It is important to make sure to agree the speci c time and working hours of your internship to avoid any misundestandings.

Most internships are done during the summer, but some are also done during the schoolyear.

Do I get paid as an intern?

Internships in Estonia are not formally regulated, and payments are therefore entirely up to the agreement between you and your employer. However, in Estonia interns usually do not get paid for their work. It is more common that in case an intern stands out and does a good job, then they will be o ered a position in the company later.

Where can I intern?

Foreign students have a higher chance in nding internship possibilities in private companies. State organisations are more di icult to target as language requirements may apply. As most Estonian companies are SMEs, some of them may lack standardized internship systems. In such a case, supervisors can either be volunteers from the organisation or employees, who need an extra hand with their tasks. However, some companies have annual internship programs and collaborate with universities regularly. You can also nd internship opportunities in the Estonian NGO/non-pro t sector.

Where can I nd information about internship opportunities?

Looking for an internship is like looking for a job. Help can be found in various information channels. Internship opportunities can often be found through universities – from the websites of the school or department or from university’s career mailing lists.

Occasionally internship positions are posted on job mediation portals, but more often on the websites or social media of the employer. Various international student organizations can also be helpful in nding internship opportunities.

In case a speci c industry or company interests you, it is worth taking the initiative and contacting them directly. Personal motivation and dedication often determine your success at gaining an internship position.

Useful sources for internship opportunities:

University mailing lists – Check from your institute’s administration, whether there is a general or an industry-speci c career mailing list at your school, where job advertisements are shared.

TalTech Internship portal – a dedicated internship portal for TalTech students and employers, sbg.career.taltech.ee

Career fairs - For instance Võti Tulevikku (Tallinn) or Delta career Day (Tartu) that take place every spring and bring together students and employers.

AIESEC – you can nd an internship abroad through the international youth organisation, aiesec.ee

Erasmus+ – EU programme for education, which o ers study migration grants also for undertaking an intern- ship abroad, eeagentuur.ee

4.4.3. Trial day

Euractiv – job site linked to a portal that deals with European Union topics, where you can nd job and internship o ers from EU institutions and agencies, international organisations, and NGOs related to the European Union, jobs.euractiv.com

According to Estonian law, work trial is a service provided by the Unemployment Insurance Fund and lasts for one day. Work trial lets you try working in an o ered position and lets the employer obtain certainty that you are a suitable candidate for the position before signing the employment contract. The prerequisite for arranging work trial is that the employer is using the services of the Unemployment Insurance Fund when looking for a person to ll the vacancy.

An employer cannot demand unpaid performance of work on trial days. The employer is exempt from paying a salary for the trial day only if during the trial day you solely observe the future workplace and do not perform any work tasks and any real work.

More information is available at: www.tootukassa.ee/en/services/job-search/work-trial

4.4.4. Volunteering

Volunteering means o ering your time, energy, or skills out of your free will and without getting any monetary compensation for it. Volunteers mainly o er their services for the greater good.

Volunteering is a great option for you to grow your local network and gain skills and experiences from the new environment and its organisations. It also helps to understand the local work environment, keeps you active and helps to maintain the habit of working. Volunteering is a great way to ll a CV with experiences and stand out from other candidates. Besides that, there are plenty of personal gains – having the great feeling of doing something good, practicing Estonian language, making friends, and adjusting in the new country.

The best ways to nd volunteering possibilities in Estonia are either through websites of volunteering portals or contacting the coordinators of events or organisations that interest you directly. It is worth keeping in mind that di erent organisations may not have the same readiness and capability to welcome foreign volunteers – mainly due to a language barrier.

See more on volunteering, including hobby education, also in the networking, volunteering and leisure time handbook.

Where to get more information

Vabatahtlike Värav is a portal that lists all volunteering listings from around Estonia. vabatahtlikud.ee

5. SKILLS

This section brie y covers aspects related to the Estonian language and drivers licence as both can be important for your employment. The section ends on advice on where to develop your skills further.

5.1. DO I NEED TO SPEAK ESTONIAN?

Many jobs in Estonia demand knowledge of the Estonian language. You can conveniently manage with English only in some of the bigger international a iliates, IT companies or startups.

The demand for Estonian comes from two main reasons. First, Estonian is the o icial language of Estonia. There are several positions where by law the local language is mandatory at either A2, B1, B2 or C1 level. The required level of the language derives from the responsibility of the position. For instance, a ticket o icer at public transportation has to know the language at an A2 level, whereas C1 is required from a doctor or a notary. Knowing the language at B1 level is the most common requirement, that is required from sales and customer support employees, o ice support, professors and from many more roles.

Estonian language at B1 level is also necessary to apply for a permanent residence permit in Estonia. Important!

Second, even if it is not mandatory by law, it might be required by your employer. The majority of companies use Estonian as their internal work language – this is the language spoken at meetings, used in written communication internally and with clients and also during social o -work activities.

Hiring the rst foreigner who does not speak Estonian can often be a challenge for both parties – the organisation itself and the new employee too, as the language barrier may create misunderstandings in professional situations as well as with teambuilding.

In the case of being the only foreigner in the team, you may sometimes experience a bit of isolation due to language barrier – colleagues may tend to speak in Estonian among themselves as this is familiar and safe to them, especially when talking about non-work topics. But learning a little bit of Estonian will surely melt your colleagues’ hearts and make them include you more.

Also read the Estonian language handbook for more information on how, why and where you can improve your Estonian!

5.2. CAN I DRIVE IN ESTONIA?

Estonia recognizes driving licences issued in many states. To get an overview of how long and under which conditions the driving licence issued in your home country is valid in Estonia and how to exchange it for an Estonian driving licence, please visit and consult the Estonian Transport Administration transpordiamet.ee/en/foreign-driving-licence, you can apply for an Estonian driver’s license after having lived in Estonia for at least 185 days.

To apply for a driver’s licence, you must go to the driving school (EE: ). The minimum course time is 6 weeks, after which you must take the theoretical and practical exams.

Where to get more information

More information about driver’s licences can be found in the “Public and private services” handbook as well as on the webpage of the Transport Administration (EE: ): transpordiamet.ee/en/foreign-drivinglicence

5.3. HOW CAN I DEVELOP MY SKILLS?

In reaching your professional goals you may also seek self-development through additional trainings and courses to get the necessary skills and knowledge that are in demand at your desired profession.

As life-long learning is increasingly important in the 21st century and to ensure that your skills match the changing demand of the labour market, it is advisable to further develop yourself even if you currently have a job.

Opportunities for such personal development are called in-service training and are regulated by law. Training opportunities are provided by vocational institutions, universities as well as other private training institutions. In addition, the Unemployment Insurance Fund (see later chapter) provides various career-building services. Such opportunities can be divided into work-related training and informal training.

Work-related training

With work-related training, you can improve your work-related knowledge and skills in various elds, to increase your professional quali cation and be more competitive in the labour market.

Work-related training for adults is provided by many private training institutions, vocational education institutions, higher education institutions and professional associations. Work-related training is usually paid for by the trainees themselves or their employers, but there are also free training courses.

If you pay for your training yourself, the Income Tax Act provides you with the right to an income tax refund in the extent of the amount paid for the training, if the training organisation has a license for in-service training or has led the relevant economic activity notice with the Estonian Education Information System.

Working people can take a study leave of up to 30 calendar days per calendar year for the training courses if the training organisation has a license for in-service training or has led an economic activity notice. During a study leave for in-service training, the average salary is paid for 20 days.

Your employer is obligated to allow you to participate in training courses. You must not be red because you wish to take in-service courses.

Higher education institutions also provide in-service training. Some examples:

Tallinn University of Technology: taltech.ee/avatud-ulikoolist (in estonian)

University of Tartu: ut.ee/et/koolitus

Narva College of the University of Tartu: narva.ut.ee/et/narva-kolledz

Higher education institutions also provide career services such as career counselling, guidance in job seeking, and mediation of jobs and practical training placements. You can nd more information about education-related support services in the handbooks on in the handbook on higher education and research and kindergartens and schools.

Informal training

In informal training, you can learn exactly what you nd interesting, thus developing yourself and acquiring the knowledge and skills needed to cope in life. Informal training is provided by informal training centres, folk universities, cultural centres, and many other institutions.

Mostly you have to pay for the informal courses yourself. Pursuant to the Income Tax Act, you are eligible for income tax exemption in the extent of the amount paid for the courses, if the training organisation has a license or has led the relevant economic activity notice with the Estonian Education Information System.

Some organisations o ering informal training

Tallinn Folk University: kultuur.ee

Tartu Folk High School: rahvaylikool.ee/tartu-folk-high-school

Did you know?

The state funds some work related and informal trainings. Information about free trainings in Estonian, English or Russian can be found from the website of Ministry of Education and Research. hm.ee/et/tegevused/taiskasvanuharidus/tasuta-kursused

6. SOCIAL SECURITY

WHILE WORKING

Estonian system of social care and welfare o ers several measures –services and activities - that support working people in their family and personal life, including paid maternity and childcare leave. This includes you as a foreigner in Estonia.

The Work Life Portal (EE: ) is a thematic joint web portal of the Labour Inspectorate, the Ministry of Social A airs, the Health Board and the National Institute for Health Development. It is a central source for information about employment relations and entering the labour market, work environment regulations, occupational health and safety and much more. Among the rest, the portal o ers work environment manuals for various elds of activity, the contact data of providers of occupational health and safety services, and information about the use of holidays, the payment of remuneration, health promotion, and other topics.

On a wide range of Estonian services, both general as well as speci c ones designed mainly for foreigners, see the handbook on services.

Where to get more information

The Work Life Portal (Tööelu) tooelu.ee

6.1. HOW IS WORKING TIME REGULATED?

How do national holidays impact work time?

Public holidays are free from work, but in case they happen to be on the weekend or during your holiday, there will not be any settlements from the next workdays.

Full working time is 40 hours per week or 8 hours per day. You and your employer may also agree on part-time work.

Is there a gap on overtime?

Rest time is also xed with law. You must be able to rest for at least 11 consecutive hours per 24-hour period. Thus, a work shift together with overtime must not exceed 13 hours.

You must also be able to rest for at least 48 consecutive hours per week. In case of summarised working time accounting, you must rest for at least 36 consecutive hours per week.

Am I allowed to rest during my workday?

Yes, you must get rest breaks during a workday. After working for 6 hours, you have the right to rest for at least 30 minutes.

However, rest breaks during the workday are not accounted into working time. Rest breaks during workday can be accounted into working time if rest breaks cannot be provided due to the nature of the work. In that case, the employee must be able to rest and dine during the working time.

List of holidays or timeline

January 1 – New Year's Day (EE: )

February 24 – Independence Day (EE: )

Moving holiday – Good Friday (EE: )

Moving holiday – Easter Sunday (EE: )

May 1 – Spring Day (EE: )

Moving holiday – Pentecost (EE: )

June 23 – Victory Day (EE: )

June 24 – Midsummer Day (EE: )

August 20 – Day of Restoration (EE: )

December 24 – Christmas Eve (EE: )

December 25 – Christmas Day (EE: )

December 26 – Boxing Day (EE: )

Working time is also shortened before public holidays. The workdays preceding the anniversary of the Republic of Estonia (23.02), the Victory Day (22.06), the Christmas Eve (23.12) and the New Year’s Eve (31.12), are shortened by three hours. The employer must shorten the workday immediately preceding the aforementioned national holidays.

6.2. WHEN AM I ALLOWED TO GO ON VACATION?

As an employee, you have the right to an annual holiday of 28 calendar days per calendar year. A calendar day means all days from Monday to Sunday.

During the rst year of working, you have the right to an annual holiday if you have worked for the employer for at least six months. In that case, the granted holiday is proportional to the time worked in the calendar year. It means that half a year after starting to work, you may take a holiday for half the prescribed holiday duration. However, the employer may agree to allow you to take a holiday already within the rst 6 months.

The annual holiday of minors and persons receiving incapacity for work pension is at least 35 calendar days. The annual holiday of employees in education and research is up to 56 calendar days.

6.2.1. How are holiday schedules set up?

The employer prepares a holiday schedule for every calendar year, taking into consideration the reasonable wishes of the employees. The holiday schedule must be made available to the employees within the rst quarter of the calendar year.

The employer may demand you to use 14 days of holiday in a single unbroken period and may decline breaking the rest of the holiday into smaller parts than 7 days. Unused holiday is transferred to the next calendar year.

From company to company or in any other organisation employing people, the exibility of this system may vary, and employers may also be more exible in allowing you to notify about your holiday wishes with a shorter notice.

The following persons have the right to holiday at the time convenient for them:

Women immediately before and after pregnancy and maternity leave or immediately after childcare leave

Men immediately after childcare leave or during their wife’s pregnancy and maternity leave

A parent raising a child of up to 7 years of age

A parent raising a child of 7-10 years of age – during the school holidays

A minor subject to compulsory school attendance – during the school holidays

Do vacation claims expire?

Annual vacation claim expires in one year starting from the end of the calendar year for which the vacation is calculated for. For example, the annual vacation for 2021 expires on 01.01.2023, meaning that the annual vacation of 2021 can be used during 2021 and 2022. Vacation expiry is put on hold, when the employee:

Is on a pregnancy and birth leave OR on an adoptive parents’ leave OR on a childcare leave;

Is in military service OR in alternative non-combatant service.

6.2.2. When will I receive holiday pay?

You must be paid holiday pay in full no later than on the next to last workday before the start of the holiday. You may agree a di erent time of paying the holiday pay with your employer, but it must not be later than the rst pay day after the holiday.

Upon end of an employment contract, the employer is obligated to compensate in money any unused and unexpired annual holiday vacation to you.

If necessary, you may apply for a holiday without pay. To do so, an application must be led with the employer, clearly stating the wish to use holiday without pay and the time of using it. Holiday without pay is normally granted only with an agreement between you and the employer.

An employer is obligated to grant an employee holiday without pay for taking nal exams of upper secondary schools and entrance exams of vocational education institutions, professional higher education institutions or universities, if the employee so requests.

6.3. WHO HAS HEALTH INSURANCE IN ESTONIA?

Ilma tööta pole puhkust

There is no vacation without work

Health insurance in Estonia is governed by the Health Insurance Act (EE: ). Health insurance is obligatory in Estonia, funded by the social tax. Health insurance functions according to the solidarity principle: the treatment service does not depend on the amount of social tax paid for the speci c person. Most of the healthcare services enabled by the health insurance are covered by the Health Insurance Fund (EE: ), but there are services and medicines that the patient needs to pay for.

Where to get more information

More detailed information is available on the website of Health Insurance Fund tervisekassa.ee

Additionally, you can read more about the healthcare on eesti.ee

An insured person is a permanent resident of Estonia or a person living in Estonia on the basis of temporary residence permit or by the right of residence or a person legally staying and working in Estonia on other grounds, for whom social tax is paid for.

Most commonly insured people include:

A person working on the basis of an employment contract

A person employed on the basis of a contract under the law of obligations

A member of the management or supervisory board of a legal entity

A public servant

A person registered as unemployed

The non-working spouse of a diplomat or a public servant

A person receiving child care allowance

According to the Health Insurance Act, some persons for whom no social tax is paid, are considered as having equal status to the insured person.

The persons having equal status are:

A pregnant woman

A person under 19 years of age

A person receiving state pension granted in Estonia

An insured person’s dependent spouse, who is no more than 5 years away from attaining the age limit for old-age pension

Pupils (there are age limits)

A student, who is a permanent resident

A person joining with the scheme voluntarily

In the two lists above a few exceptional cases were omitted. If you are interested in the full lists, please visit the website of Health Insurance Fund.

6.3.1. How do I know if I am insured?

You can check whether you are insured or not by logging into the state e-portal eesti.ee and accessing section “My Data”. The insured person does not need to take the Health Insurance Fund card for attending the doctor in Estonia, it is su icient to have an identi cation document with a photo.

Is

there private insurance?

In addition to the state health insurance, private health insurance services are also available in Estonia. Voluntary health insurance is intended for those who have no state health insurance from the Health Insurance Fund. Voluntary health insurance covers medical treatment costs.

It is also possible to buy dental health insurance from insurance providers.

6.3.2. What if I get sick while working?

In case you fall ill while working, you have a right to take a sick leave (EE: ). Your family doctor must register a sick leave, i.e. you are obligated to inform your family physician if you fall ill immediately. After examining you, the family physician issues an electronic certi cate for sick leave. You will receive temporary incapacity for work bene t based on the certi cate for sick leave. You must inform your employer immediately when the sick leave has ended.

The rst three days of a sick leave are not compensated for the employee. For the 4th-8th sickness days, the employer pays the bene t for the employee. On the 4th-8th sickness days, the bene t amount is 70% of the employee’s average salary of the past six months. Starting from the 9th day, the Health Insurance Fund pays the bene t. The bene t amount is 70% of the previous calendar year’s taxable remuneration. If you did not work in the previous year, the bene t is calculated based on the minimum remuneration rate (the minimum salary was 725 euros in 2023). Sick leave may be granted for up to 182 consecutive days.

The payment and rates of the incapacity for work bene t are described by the following gure.

Read more here:

Employer compensates

70% of the employee’s avarage pay

The health insurance Fund compensates 70% of the previous calendar year’s income taxable by social tax Not compensated

There are, however, some exceptions. The Health Insurance Fund pays the bene t starting from the second day of the sick leave if the reason for the sick leave is an occupational illness, an occupational (tra ic) accident or illness, injury while protecting the interests of the state or the society or while preventing a crime and illness during pregnancy.

In case of transferring a pregnant woman to an easier job, the Health Insurance Fund pays the employee a bene t starting from the rst day of working in the job corresponding to her health status.

Sick leave has a limitation of the period for paying the bene t. In the event of a disease or injury, an insured person has the right to receive sickness bene t until the date on which their work ability is restored as speci ed in the certi cate for sick leave, but not for more than 240 consecutive calendar days in the event of tuberculosis or 182 consecutive calendar days in the event of any other disease.

6.3.3. Am I allowed to take sick leave when my child is ill?

A parent has the right to stay at home from work if caring for a sick child. In that case, the parent being absent from work is paid 80% of the previous calendar year’s average salary if the child is under 12 years of age and is cared for in a hospital or at home. The bene t is paid from the 1st day until the 14th day.

In case of other family members, the eligible period of care bene t if caring for them at home is up to 7 days. If caring for a child under 3 years of age or a disabled child under 16 years of age, a person insured under a care certicate is eligible for care bene t for up to 10 days if the person caring for the child is themselves ill or is receiving obstetrical care.

There are several exceptions, rules and conditions, thus for more information, please consult the handbook compiled by the Estonian Health Insurance Fund (Healthcare in Estonia 2020) or directly with your employer.

6.3.4. Is medical treatment abroad covered by the insurance?

Persons insured by the Estonian Health Insurance Fund, who are staying temporarily in another European Union Member State, receive required health care on equal terms to insured people living in such country.

For travelling on the territory of the European Union, one should have a valid European Health Insurance Card (EHIC) or the substitution certi cate, which can be applied for from the Health Insurance Fund. Everyone who has Estonian health insurance, has the right to get the EHIC (including citizens of third countries). EHIC delivery takes 10 days. EHIC is free of charge if the child is themselves ill or is receiving obstetrical care.

Where to get more information

More detailed information is available on the Haigekassa website: haigekassa.ee/en/kontaktpunkt/medical-care-europe/ european-health-insurance-card

What about referred medical treatment abroad?

The Health Insurance Fund covers the treatment costs of only those who have received the relevant permit for treatments abroad. If the person les a compensation application or a treatment invoice later, without a previous agreement, the Health Insurance Fund will not compensate the treatment costs.

To be referred to medical treatment abroad, a separate application must be led with the Health Insurance Fund, preferably including the decision of a committee of physicians if possible and an extract of the medical history. To get the decision of a committee of physicians, contact your treating physician who will give and provide you with the copy. Applications without such a decision are processed longer, because then the Health Insurance Fund needs to contact the person’s treating physician on its own, asking to summon the committee.

6.4. HOW IS THE MATERNITY LEAVE REGULATED?

If a woman starts using a maternity leave less than 30 calendar days before the estimated date of birth, the leave is shortened by the respective period. A woman has the right to a maternity leave (EE: ) of 100 calendar days, which she may use at least 70 calendar days before the estimated date of birth.

Lapsed on meie elu õied

Children are the flowers of our lives

During a maternity leave, the Social Insurance Board pays maternity bene t for the mother. The amount of maternity bene t is 100% of the employee’s average remuneration for one calendar day, calculated on the basis of the calendar year preceding the taking of maternity leave. Social Insurance Board pays maternity bene t on a monthly basis.

A father has the right to receive a total of 30 calendar days of paternity leave in one part or in parts during the period of time from 30 days before the estimated date of birth determined by a doctor or midwife until the child attains three years of age. The use of the paternity leave does not depend on whether or not the child’s mother is using a pregnancy and maternity leave. It is also not important for the use of the paternity leave whether the child’s father is married to the child’s mother or not.

The purpose of the paternity leave is to provide fathers with more free time to spend with their child and family. That is also why fathers are not allowed to work or earn any income during paternity leave.

6.4.1. Are there parental bene ts?

A mother or father has the right to childcare leave until his or her child reaches the age of three years as well as parental bene ts for 18 months. Parental bene t is available for permanent residents of Estonia and foreigners living in Estonia with a temporary residence permit or a temporary right of residence.

Parental bene t enables one of the parents to stay at home after the childbirth, to care for the child, while also preserving the parent’s average salary for 475 days. Parental bene t is paid for 515 days when the child’s mother did not work before giving birth and did not receive maternity bene t.

When the child reaches 31 days old, the parents can decide which parent will continue to receive the parental bene t.

One person may use childcare leave at a time, and either as a single full period or in parts at any time. For example, the childcare leave can be taken by one parent in the beginning, then by the other parent, then by neither of them, and later by one of them again. If one parent has taken parental leave, that parent has the right to parental bene t and childcare allowance.

How big is the parental bene t?

The parental bene t amount is calculated separately for each recipient, depending on their previous income. The parental bene t amount is calculated based on income of the parent receiving the bene t for which employer has paid social tax. When calculating the amount of parental bene t, rst, the 9 months preceding the month of birth of the child is subtracted and the amount of bene t is calculated on the basis of income earned over the course of 12 months preceding those 9 months.

The parental bene t is also paid if the parent did not earn any income taxable with the social tax. In this case, the bene t is paid in the amount of the minimum wage that applied on January 1st of the previous calendar year (725 euros in 2023, 820 euros since 2024).

If the average monthly income was below the minimum salary rate, the parental bene t is paid in the amount equal to the minimum salary rate. The minimum monthly salary rate is 654 euros in 2023.

The maximum parental bene t amount is three times the average Estonian salary from the last but one year. This amount is paid if parent’s average monthly income is equal to or greater than this amount. In 2023, the maximum parental bene t is 4291,29 euros, 4733,53 euros since 2024.

How can I apply for parental bene ts?

In order to get the parental bene t you must rst give your child a name and register the child in the Population Register. This can be done through the eesti.ee portal. No application is required for receiving bene ts. Once the child is registered in the Population Register this information will automatically reach the Social Insurance Board (EE: ) the next day. The Social Insurance Board will review which types of allowances your family is entitled to and will send a family bene ts o er to both parents through the self-service portal.

To change the recipient of parental bene t, the new applicant les an application, and the current recipient grants his or her consent. Parental bene t is paid to the new recipient from the following month.

Where to get more information

Social Insurance Board sotsiaalkindlustusamet.ee

You can also refer to eesti.ee

Ministry of Social A airs sm.ee

6.4.2. What other type of childcare leaves are there in Estonia?

Both parents who are employed based on an employment contract may use 10 working days of paid child leave, i.e. 20 working days in total, for each child up to the 14 birthday of the child. In the case of several children, the child leave can be used in the extent of up to 30 calendar days per calendar year. The leave may be used all at once or in parts. Guardians and foster parents are also entitled to the leave.

In addition to the child leave, a mother or father of a disabled child has the right to child leave of one working day per month until the child reaches the age of 18 years, which is remunerated for on the basis of the average wages.

A mother and father who is raising a child of up to 14 years of age or a disabled child of up to 18 years of age has the right to child leave without pay of up to ten working days every calendar year. Child leave without pay can be taken by not only a parent but also the child’s guardian or a person with whom a foster parenting agreement has been signed.

An adoptive parent of a child under 18 years of age has the right to adoptive parent leave of 70 calendar days as of the date of entry into force of the court judgement approving the adoption, and one parent can use the leave at a time. The adoptive parent has the right to 100 percent of the average remuneration per calendar day, calculated on the basis of the calendar year preceding the court judgement approving the adoption.

For more information on family matters, please consult the handbook on family and children.

6.5. HOW ARE LABOUR DISPUTES RESOLVED?

Di erent parties – both employer as well as the employee – have a right to contact the Labour Dispute Committee for free and the committee usually makes a decision on the dispute within 45 days.

Lõpp hea, kõik hea All's well that ends well

It is quicker and simpler to solve a labour dispute between an employee and an employer in a Labour Dispute Committee than in a court.

A labour dispute case is reviewed by the head of the Labour Dispute Committee as the state’s representative, plus a representative of employees and of employers. The three-member committee hears out both parties of the dispute and makes a decision, which is compulsory for the parties. If the parties do not agree with the labour dispute committee’s decision, they can turn and go to a court. The sessions of labour dispute committees take place in all county centres of Estonia.

Labour Inspectorate can also provide legal counselling in labour matters. The lawyer hotline +372 640 6000 is open for questions every workday at 9:00–16:30. The hotline is answered by the Labour Inspectorate’s lawyers, advising about employment contracts and collective agreements, work time and rest time, holidays, remuneration and work environment safety. You can also ask a lawyer over e-mail: jurist@ti.ee.

The Labour Inspectorate (EE: also performs state supervision over compliance with the requirements set out in the labour legislation. All this has the goal of contributing to the improvement of the quality of work life.

Where to get more information

In Estonia, labour disputes are settled by the Labour Dispute Committee (EE: ), see more at ti.ee

6.6. WHO REPRESENTS THE WORKERS?

A trade union is an organisation founded only at the wish and initiative of employees to improve the working and living conditions in joint action of employees and in collaboration with the employee and to protect the employees’ rights and interests. Trade unions are independent from employers, state authorities and other organisations. Services provided by trade unions to their members:

Introducing employees to their legal rights;

Negotiating with employers for better salaries and work conditions;

Protecting employees from the employer’s arbitrary power in employment relations;

Protecting employees from discrimination at workplace;

Supporting employees in disputes or labour disagreements with the employer;

Ensuring the help of a lawyer in solving disputes;

Helping ensure the certainty of job and increase the feeling of security in work life;

Creating a feeling of cohesion in the workplace;

Participating actively in arranging the work life of employees.

Joining of trade unions is voluntary in Estonia. If you wish to join a trade union, ask for more information from your employer’s human resources department or directly from the trade union.

At workplace, workers can be represented by the employees trustee, e.g. the employees representative.

Major trade union organisations:

Estonian Trade Union Confederation (Eesti Ametiühingute Keskliit)eakl.ee

Estonian Employees’ Unions’ Confederation (Teenistujate Ametiliitude Keskorganisatsioon) TALO - talo.ee

6.7. WHAT HAPPENS IF I BECOME UNEMPLOYED?

If you lose your job, there are safety nets in place to provide you with some income replacement. There are two support measures in place – the unemployment insurance and the unemployment allowance. They sound similar but serve a di erent purpose. They are also mutually exclusive, i.e. you can only have one at a time.

6.7.1. What is the unemployment insurance?

The goal of unemployment insurance is to provide partial compensation for the lost income during the period you are unemployed, support an active job search and o er support in the case of collective redundancies. Unemployment insurance in Estonia is governed by the Unemployment Insurance Act.

How large is the unemployment insurance bene t?

The unemployment insurance bene t is paid at a rate of 60% of the previous wage or salary for the rst hundred days and thereafter at a rate of 40%.

There is also a minimum amount, which is set at half of the national minimum wage.

Who is eligible for unemployment insurance?

You become eligible for unemployment insurance bene ts if:

You have been registered as unemployed.

You have led an application for unemployment insurance bene ts.

You have been employed and paid unemployment insurance premiums for at least 12 months within the 36 months preceding registration as unemployed.

Your employment relationship was terminated on grounds giving you the right to seek indemnity.

Your previous employment must have ended through no fault of your own to become eligible for unemployment insurance bene ts. This means that you can only receive a bene t when your employer has terminated your contract, or when the contract has run out. No bene t is granted when you have left your job by choice or following a mutual agreement with your employer, or when you have been dismissed due to an infringement, loss of con dence, or indecent act or act of corruption. The one exception to this rule is when you have resigned on your own initiative because the employer breached the contract by violating the terms and conditions of the contract or changed the organisation of production or work.

Some employers prefer to end employment agreements by mutual consent, because this is the easiest and most con ict-free way to do so. Be sure to understand the consequences concerning your right to bene ts before you enter in such an agreement.

6.7.2.

What is the unemployment allowance?

If you do not meet the conditions to receive an unemployment insurance bene t, or if you have exhausted your rights to a bene t, you may still qualify for the unemployment allowance if you have worked for a minimum of 180 days during the previous calendar year.

The unemployment allowance (327.05 EUR a month in 2023) is paid for a maximum period of 270 days. The conditions are di erent than those for the unemployment insurance bene t and are somewhat more complicated due to the existence of many exceptions.

Who quali es for the unemployment allowance?

The unemployment allowance is paid to unemployed persons who do not qualify for the unemployment insurance bene t, who actively look for work, who have worked or nished full-time studies, and who have an income that is less than the allowance. The requirement to be involuntarily unemployed does not apply.

There may be other grounds to qualify for the unemployment bene t and it is advisable to contact a consultant of the Unemployment Insurance Fund for more detailed info. Unemployment allowance in Estonia is governed by the Labour Market Services and Bene ts Act.

6.7.3.

Application process

In both cases, applications need to be lled in with the The Estonian Unemployment Insurance Fund (EE: ). To apply for the unemployment insurance bene ts, you must ll in the application for registration as unemployed and the application for the unemployment insurance bene t.

This can be done either physically at the local o ice where you are registered or by submitting the application online. Online submissions are done via e-Töötukassa (tootukassa.ee).

While you cannot receive the unemployment insurance bene t and the unemployment allowance together, you can apply for them at the same time. The Unemployment Insurance Fund will then check for which of the two you qualify and make the decision with regard to payment of the bene t or allowance within 14 days of submission of the application.

6.7.4.

Can I receive bene ts from another country?

As an EU citizen if you come to Estonia to look for work and are entitled to unemployment bene ts in other European country you have worked earlier you may be able to have your bene t transferred and paid out in Estonia for a period of three months.

In order to arrange this, you rst must contact the local employment o ice in the country where this right exists and discuss your intention to go look for work abroad. The authorities there will issue you with the necessary forms and instructions.

When you arrive in Estonia, you must then register as soon as possible with the Estonian Unemployment Insurance Fund to make sure you do not lose bene ts. Please note that the bene ts will be paid to you by the country where you received an unemployment bene t earlier.

The Unemployment Insurance Fund’s job mediation services (see next sub-chapter) will then assist you in your job search and will also explain to you the procedures that apply and the conditions you will need to adhere to. These procedures and conditions are designed to ensure that you are actively looking for employment and that you are ready to start working when a job is o ered.

Did you know?

If you have become unemployed in Estonia, previous employment in other European Union Member States (plus Norway, Iceland, Liechtenstein, and Switzerland) may be taken into account when your right to a bene t in Estonia is determined. To that end, you will need to obtain documents that prove your record from the countries you have worked in before.

6.7.5. Estonian Unemployment Insurance Fund

In addition to all of the above, the Estonian Unemployment Insurance Fund (EE: ) also organises labour market services that help both the unemployed persons as well as working people. Career services are provided both face to face at regional o ices as well as over the Internet.

The career counselling service supports people in making informed decisions concerning their career development.

Career counselling can help you if:

You have no training needed for employment

You have no earlier work experience and a poor knowledge about the working world

You have not been working for a long time and your professional skills have become outdated

You are unable to work in your profession due to health reasons or other important reasons

You cannot nd work in your profession because there is no demand for it in the labour market

You wish to assess your outlooks in order to choose a profession and nd a suitable training and job

You need advice for better results in job seeking. The Unemployment Insurance Fund helps you in preparing your CV and it is also possible to participate in job interview simulations.

Career counselling is available in Estonian, Russian and English and takes place individually or in groups. Individual counselling normally takes 45 minutes, but the intended results may need more time. Therefore, you can attend several counselling sessions if necessary. Group counselling takes place in a group with several people (usually 8 – 16). Communication in a group helps you to learn from each other’s experiences and share your own, develop your teamwork and self-expression skills, and nd support in group mates.

The Unemployment Insurance Fund also provides many other services (the list is non-exhaustive):

Labour market trainings – available for registered unemployed in case the person and their consultant assess that a new skill needs to be gained or improved in order to secure employment.

Job mediation – a service that helps to nd suitable positions for job-seekers and the unemployed.

Job and career fairs – organized each year across the country as well as online.

Business start-up subsidy – available for registered unemployed persons, persons in retirement age or receiving early retirement pension, persons receiving allowance of a rescue worker, or persons who have received a redundancy notice and registered as a job-seeker.

Work practice – a labour market service for the purpose of restoring work habits or shaping initial work habits, as well as increasing the unemployed person’s social inclusion.

Apprenticeship – a work placement for up to four months to acquire practical skills needed for work.

Career centre – a dedicated career centre (EE: ) in Tallinn (Tartu mnt 80) that provides interactive tools, such as virtual reality and simulations, to help you prepare for your career.

Where to get more information

Find all services of the Unemployment Insurance Fund at: tootukassa.ee

6.8. HOW CAN I RECEIVE A PENSION?

The aim of the Estonian pension system is to help people maintain a monthly income when they retire. The Estonian pension system comprises of three pillars: Current pension Your salary Your pension

In Estonia, pension is paid only for the time of working in Estonia. Pension for the time of working in other countries is paid by the respective country. To receive pension from another country, contact that country’s competent authorities.

6.8.1. I pillar: State pension

The state pays the state pension from the funds collected to the state budget from the social tax. It aims to ensure a minimum regular monthly income for the persons who have reached the retirement age, have become incapable for work, or have lost their provider.

The state pension is not collected in advance. The state pension is based on the principle of solidarity, which means that the pensions of current pensioners are paid from the social tax of people who are currently working.

There are several di erent types of state pensions: old-age pension, pension for incapacity for work and the survivor’s pension, pension under favourable conditions, national pension, and superannuated pension.

You get state old-age pension if you have reached the retirement age and if the length of your employment is at least 15 years. The general age of retirement in Estonia is 63 years, but this is gradually increased based on the year of birth. By the year 2026, the general age of retirement in Estonia will be 65 for both men and women.

In 2023 the base amount of pension, i.e. the part that is the same for everyone, is 317,90 euros. In addition, pensioners get state old-age pension based on the length of their employment. In other words, the longer you have worked the bigger the increase on your old-age pension. In 2023, the value of a year of pensionable service is about 8,684 euros. Altogether, the average old-age pension in 2023 is 700 euros.

National pension is a type of state pension paid to those who do not have enough work experience (15 years) for old-age pension. You are eligible for the national pension if you live in Estonia, you are a permanent resident of Estonia or a foreigner with a temporary residence permit or right of residence, and you are at least 63 years old and you have lived permanently in Estonia at least 5 years prior to ling the application for national pension. The national pension in 2022 is 275,34 euros.

Where to get more information

For more information on the I pillar state pension, e.g. the old-age pension and national pension, please consult with the Social Insurance Board (EE: ): sotsiaalkindlustusamet.ee

6.8.2. II pillar: Funded pension

The aim of the second pillar is to direct a part of working people’s salary towards their personal pension, so that people would have, in addition to the state pension an additional pension that they accrue themselves.

The II pillar used to be mandatory. However, the law was recently changed and as of 2021, it has been made voluntary. This means that since January 2021 you can submit a voluntary application to join the second pillar. Or, in case you have already worked in Estonia and have a second pillar, then you now have the right to either continue as you did before, to suspend your contributions or even leave the pillar and withdraw the collected funds.

For more details regarding the restructuring of the II pillar please consult the Pension Centre explanations: pensionikeskus.ee/en/

The funded pension is based on preliminary nancing – you save for your pension by paying 2% of your monthly gross salary to the pension fund of your choice. The 2% is automatically withheld from your gross salary by your employer and paid to the fund directly. The state adds another 4% from the 33% social tax calculated on your salary to your pension fund.

To collect money to the II pillar a pension account needs to be opened. The application can be submitted either through bank o ices, your internet bank or the Pension Centre e-portal pensionikeskus.ee/en/.

The money paid into the pension funds is managed by fund management companies who invest the pension contributions into di erent assets with the aim of increase the value of the money contributed by the collectors over the years. In addition to accumulating money in pension funds, the II pillar money can since January 2021 be accumulated via pension investment accounts.

Important:

Choosing a fund is the most important decision in the funded pensions system. It must be done carefully and considering all the aspects. Fund management companies provide various second pillar funds from which everyone can choose the one that matches their aims and risk tolerance. Advice on how to make a well thought-out decision can be found at the Pension Centre (EE: ) website: pensionikeskus.ee/en/ii-pillar/mandatory-funded-pension/

6.8.3. III pillar: Supplementary funded pension

The third pillar or the supplementary funded pension is the option to increase your pension further as the I and II pillar might not be enough for your desired economic well-being by your retirement age.

The III pillar is voluntary. The most notable di erence from the II pillar is that there is no xed monthly contribution from your gross salary. Payments to supplementary funded pension contracts are exible. You can choose yourself how much more funds you want to collect for retirement and the size can be changed at any time. Payments can temporarily be suspended, and it is also possible to withdraw a part of the funds prior to retirement.

Di erently from the II pillar the state does not add extra funds to your pension account. However, the II pillar has an income tax incentive. You can apply for the refund of the income tax on contributions to the third pillar, getting a 20% tax rebate on annual contributions, which do not exceed 15 percent of the gross income. It is possible to pay up to 6 000 euros annually into the third pillar.

There are two options for subscribing to the supplementary funded pension:

Conclude a pension insurance contract with a life insurance company or

Make contributions to the voluntary pension fund.

Where to get more information

For more information about pensions, consult with the Pension Centre (EE: ) at: pensionikeskus.ee

LIST OF REFERENCES

O icial guides and gateways:

Destination Estonia – Relocation Guide: Compilation of practical info for new arrivals in Estonia workinestonia.com/coming-to-estonia/relocation-guide/ e-Estonia Portal: eesti.ee – gateway to all government information and public e-services.

Settle in Estonia: settleinestonia.ee – Your guide to settling in Estonia

Roadmap for coming to Estonia: euraxess.ee/estonia/information-assistance/entryconditions-and-residence-permits-estonia/roadmap-visas-entry

Visit Estonia: visitestonia.com - gateway to travel and sights in Estonia

Study in Estonia: studyinestonia.ee gateway to higher education in Estonia

Research in Estonia: researchinestonia.eu — information and news about research activities in Estonia.

Found in Estonia: foundinestonia.ee — bi-weekly podcast sharing stories of people who have moved to Estonia.

Ministries and other institutions:

Ministry of Education and Research: hm.ee/en – education, research and Estonian language.

Ministry of Social A airs: sm.ee/en – health care, labour, social services.

Ministry of Culture: kul.ee/en — information about the state’s culture, sports, arts and heritage conservation activities.

Ministry of Justice: just.ee/en – legal and criminal policy of the state.

Ministry of the Interior: siseministeerium.ee/en – citizenship, migration, identi cation documents and internal security.

Ministry of Foreign A airs: vm.ee/en – security, business diplomacy and human rights.

Estonian Ministry of Economic A airs and Communications: mkm.ee — economy, entrepreneurship, business-academic cooperation.

The Integration Foundation: integratsioon.ee/en – information about adaptation in Estonia, adaptation programme Settle in Estonia, Estonian language courses, citizenship and Estonian Language houses etc.

Estonian Institute: estinst.ee/en/ – information about Estonian society and culture.

EURES: eures.ec.europa.eu – European Employment Services.

Unemployment Fund: tootukassa.ee/en – o icial website of Eesti Töötukassa, which administers the social insurance provisions related to unemployment, and organises labour market services.

Pension Centre: pensionikeskus.ee- information about the Estonian pension system.

Police and Border Guard Board: politsei.ee/en – legal basis for staying in Estonia, identity documents, citizenship.

Police and Border Guard Board Migration Advisors: politsei.ee/en/migration-consultants – free legal advice by PBGB personal advisors about di erent legal grounds to live in Estonia and the necessary documentation

Emergency contacts: 112 - 24/7 emergency telephone number for ambulance, police and rescue workers.

1247 – State helpline for trustworthy governmental information, state measures on coronavirus, psychological rst aid to all in need.

116 006 – Victim support helpline assistance to people who have fallen victim to an o ence, negligence, or mistreatment or experienced physical, psychological, economic, or sexual violence.

1220 – The Medical Counselling Advice Line o ers medical advice (calling from abroad, dial +372 634 6630). 24/7 in Estonian and Russian, between 15.00-17.00 in English

KEYWORDS

FURTHER READING

Networking, Volunteering and Leisure Time

Education in Estonia

Volunteering in Estonia

Leisure activities and free time

Family vacation and kids

Making friends and networking

Youth work and hobby education

Lifelong learning

Kindergartens and childcare

Schools in Estonia

Learning languages

Studying for adults

Vocational education

Private and Public Services

Family and Children

Relocation and belongings

Counselling and mentoring

Residence and housing

Identity documents

Transportation

Local media and information

Business and Entrepreneurship

Economic and business environment

Entrepreneurship and startups

Setting up a company in Estonia

Legislation, taxation, and accounting

Employer's perspective on staff

Legal aspects and forms for companies

Higher Education and Research :

Overview of higher education

Academic life and available resources

Networking and support for students

Research in Estonia and its essence

The state of research

Funding framework

Residence and Citizenship

Education in Estonia

Moving to Estonia

Residence and registration

Naturalisation and citizenship

Estonian migration policy

Estonian migration compared

Kindergartens and childcare

Schools in Estonia

Learning languages

Studying for adults

Vocational education

My Rights and Responsibilities

Kindergarten and Schools

Rights and opportunities

Offences and misdemeanours

Protection from violence and abuse

Relevant support

Child protection

Contracting companies: Expat Relocation Estonia OÜ

Design and layout: Richard Kaarna, richardkaarna.com

Printing: Printed at Librix Print powered by wabrix.ee

Responsible publisher: Integration Foundation

Settle in Estonia website: settleinestonia.ee

The project is co-funded by the European Union via the European Social Fund and by the Republic of Estonia.

Handbook version: April 2024

© 2024 Integration Foundation. All rights reserved.

Provided the use of the work is not carried out for commercial purposes, it is allowed to use it without the author’s permission as established in Chapter IV of the Copyright Act. The Ministry of Culture points to the fact that pursuant to the Copyright Act, in the case of unlawful use of the work, compensation for the patrimonial or non-patrimonial damage caused and delivery of that which was received may among other things be claimed for.