Employment taxes

• Flat personal income tax of 20%, simple and predictable.
• Residents are taxed on their worldwide income; non-residents only on Estonian-sourced income.
• Social tax is paid by the employer (33%), which covers health insurance and pensions.

Leave policy

• Vacation: 28 days of paid annual leave plus 12 public holidays.
• Sick leave:
• Days 2–5: Paid by the employer at 70% of your average salary over the past 6 months.
• Day 6 onward: Covered by the Health Insurance Fund, based on the social tax paid in the previous calendar year.
• Day 1 is unpaid.
• Parental leave: Estonia is incredibly family-friendly, with up to 435 days of paid parental leave shared between both parents.

Employment termination

• Employers must provide valid reasons and notice periods (15–90 days depending on tenure).
• Severance pay applies for unfair dismissals.
• Employees can quit with 15 days' notice, no explanation needed.

Hiring and contracts

• Employment contracts must be in writing and include job role, salary, start date, working hours, etc.
• Probation periods: up to 4 months.
• Estonia supports full-time, part-time, fixed-term, and remote contracts.

Payroll and salary payments

• Salaries are paid monthly, usually by the last working day of the month.
• Payslips are mandatory and must show all deductions (taxes, social contributions, etc.).
• Employers are responsible for withholding and reporting all taxes and contributions.
• The gross minimum monthly wage in Estonia (as of 2024) is €820.

Benefits

• Health insurance (state-covered via employer-paid tax)
• Pension contributions
• Parental benefits
• Some employers offer extras like wellness allowances, tech stipends, and professional development budgets.

Monthly living cost (Tallinn Edition)

• Rent (1-bedroom apartment): €500–€850
• Utilities: €100–€180
• Groceries: €250–€350
• Public transport: €30 (or free for residents of Tallinn)
• Coworking space: €150–€250

Total monthly cost for a single person: €900–€1,500, depending on lifestyle.

How to get a local ID Number

Everyone working or living in Estonia is required to have a personal identification code.
Here’s how:

• Register your place of residence with the local municipality
• Apply at the Population Register office
• Bring passport/ID, residence permit, and rental contract
• You’ll get your number shortly after registration

Remote workers can also apply for an e-Residency, which allows them to start and manage a business online from anywhere in the world.

Social Security Registration

• Done automatically by your employer when they report your employment to the Estonian Tax and Customs Board.
• Covers health insurance, pensions, unemployment benefits, and parental leave.

Banking

• Open a bank account using your passport and ID code; some banks may also require a work contract or proof of address.
• Major banks include: Swedbank, SEB, LHV, and Coop Bank.
• Online banking is fast, secure, and available in English.

Housing and rental process

• Most rentals come unfurnished or semi-furnished.
• Deposit: Usually 1–2 months’ rent.
• Lease terms: Typically 1 year, with provisions for early termination.
• Tenant rights are protected by law, and landlords are required to provide notice for rent increases or termination.

Healthcare system

• Funded through the social tax paid by employers.
• Once you’re registered, you’re covered by the Estonian Health Insurance Fund (EHIF).
• Family doctors are your go-to. Specialist care requires a referral.
• Public hospitals handle emergencies, no upfront payment needed.

Driving and public transport

• EU driver’s licenses are valid.
• Non-EU citizens can drive for up to 12 months, after which they must exchange their license.
• Tallinn residents with a registered address receive free public transport.
• Buses, trams, and trains are clean, on time, and easy to use.

Emergency and important contacts

• Emergency: 112 (ambulance, police, fire)
• Family doctor advice line: 1220
• e-Residency support: https://e-resident.gov.ee/
• Tax and Customs Board: https://www.emta.ee/

Work permits and visas

• EU/EEA citizens don’t need a visa; they only need to register if staying for more than 90 days.
• Non-EU citizens can apply for:
• Short-term employment registration (up to 365 days)
• Long-term D-visa
• Temporary residence permit for work (valid up to 5 years)
• Estonia also offers a Digital Nomad Visa for remote workers.