The cost of specialized EOR services is determined in Estonia as a percentage of a coworker’s monthly salary. This cost covers all HR duties necessary to guarantee adherence to all regional employment laws.  

Managing employer responsibilities through an EOR is safe, legal, and effective without requiring a new local company structure in Estonia. EOR services accomplish this by having excellent HR assistance and in-depth knowledge of the local legal system. 

Your team members will be protected according to the law, receive accurate and timely monthly payments, and be qualified for all Estonian employee benefits when you use an EOR service agreement.  

Independent contractors who collaborate with clients through an Estonian EOR have total control over their work and could be entitled to many or all of the same benefits as regular employees or if they were working with an umbrella corporation. 

By employing their extensive professional networks, in-depth understanding of the available local business resources and standards, and rigorous adherence to ethical hiring procedures, our recruiting specialists can locate the best local Estonian personnel for your needs.  

As a result, it will be simpler and more efficient to integrate them into our Estonian EOR system rather than hiring these applicants through more traditional hiring practices. 

Through INS Global, you receive comprehensive compliance-assured employment outsourcing assistance from a truly international EOR services provider in Estonia. Employer of Record services abide by all pertinent local, state, and federal laws meaning you can pursue opportunities anywhere in the country.  

Some Estonian PEO or EOR service providers may have stringent hiring criteria or a cap on the number of employees you hire simultaneously.  

However, your long-term business strategy could dictate that you fast scale up or down. Because INS Global is aware of this, you may work with us and hire as few or as many people as you need to achieve your objectives. 

The overall cost should include payroll expenses, hiring charges, signing bonuses, and other direct and indirect costs like incentive programs, handling the taxes of foreign employees, and social insurance. 

You won’t require a local site using Estonian PEO services, which could spare you from onerous incorporation rules.  

However, it is still a good idea to give your team the choice to work in a shared workspace or the freedom to do so whenever and wherever it’s most convenient. INS Global can also help to find appropriate working spaces in Estonia. 

We can deal with all the key differences, like visa and work permit regulations, whether Estonian citizens or foreigners are subject to specific local employment norms, tax legislation, or employee incentives.  

Businesses of all sizes, from SMEs to big organizations, may use EOR and PEO solutions to accelerate their expansion. Solutions for employment outsourcing make it possible to hire local or foreign workers in an effective and secure manner.  

Our services are simple to scale up to match the demand for new workers and can even replace more complex internal HR requirements.  

Businesses in a variety of industries that either don’t have their own structures in a target country (or desire to avoid cost-scaling issues while focusing on expansion) might benefit from the legal expertise offered by PEO and EOR services.  

Two more options that may be used to directly or indirectly hire independent contractors are staffing companies and umbrella corporations.  

The majority of independent contractors in Estonia work for themselves or own their own small enterprises. The use of labor agreements rather than employment contracts is required by Estonian legislation when recruiting contractors. 

Before starting work in Estonia, an independent contractor may be required to present a resume, portfolio, verified references, and a signed NDA. 

Payroll in Estonia is done monthly by most companies, though it may be more frequent, with employers managing tax and social security processes on behalf of their employees. 13th-month bonuses are not legally necessary but are often given as an incentive.  

In 2023, the minimum wage in Estonia is 725 euros per month (or 4.30 euros per hour).  

Estonian visas follow typical Schengen patterns as a country within the Schengen area. EU and EEA citizens can live and work in Estonia without additional requirements.  

For citizens of other countries, the following visas are available for work-related purposes: 

• Short-Stay Visa/Schengen Visa – Valid for 90 out of 180 days, this visa is restricted to certain business operations, including attending meetings, conferences, and signing contracts.  
• Long-Stay Visa/ Work Visa – Valid for 365 days, during which time the holder can apply for a 5-year temporary residence permit.  
• EU Blue Card – A specialist EU-wide visa for highly-qualified professionals which is valid for up to 4 years.  

In Estonia, employers contribute a monthly amount towards their employees‘ social security funds, equivalent to 33% of an employee‘s gross salary. This amount covers the employer portion of the employee‘s pension and health insurance funds.  

All employees in Estonia are eligible for healthcare, a business travel allowance, unemployment insurance, and annual paid leave. In addition, while not mandatory, it‘s common practice for companies to offer paid sick leave, annual bonuses, and employee perks like gym memberships or meal cards.  

In Estonia, all changes to an employment contract must be agreed upon by both parties. 

Workers in Estonia pay social contributions towards a national mandatory healthcare service that employs healthcare professionals publically and privately. As a result, healthcare in Estonia is almost universal, with users paying only a small fee for most services.  

Employers must give all employees adequate notice before terminating an employment contract. This period begins at 15 days for employees in their first year of service (including during the probationary period). It increases to 30 days between 1-5 years, 60 days for service of 5-10 years, and 90 days for any time after this. Employees made redundant are eligible for 1 month of salary as severance pay, with an additional 1 or 2 months being provided by the employee‘s social security fund.   

The Estonian Labor Inspectorate is in charge of ensuring that workers’ rights and workplace safety are upheld. 

There are typically 13 days of paid public holidays per year in Estonia.