Hiring employees in Estonia
Payroll Services Estonia
Simplify your business’s payroll management by adopting Outsourced Payroll in Estonia through PeoplePay Global. Our team of specialists are committed to producing a streamlined operation that can reduce administrative stress and free you and your employees to focus on the growth of your organisation.
We manage even the smallest details of a successful payroll system, from Social Taxes, Payslips and Statutory Reporting, to give you the confidence that your business is staying compliant with local Tax and Employment Laws.
Simplify your payroll management today by joining our customers at PeoplePay Global Estonia.
Estonian Payroll Services
Outsourcing Payroll in Estonia is the smart solution to payroll management for any business looking to streamline its organisation. At PeoplePay Global, we ensure that all of your payroll processes are handled with care, with everything you need, from Social Tax, Payslips, Unemployment Insurance Contibutions and Income Tax.
Our specialists are kept up to date with any changes in local Labour Laws, to ensure that compliance is maintained throughout, reducing administrative burdens and costly mistakes. Furthermore, we will provide the reassurance that all employees are paid accurately and ontime, to build trust and keep your business running smoothly.
Data Security and Transparent Reporting are key goals to helping your business to grow naturally, freeing your time to focus on the bigger picture whilst we handle the small details.
Start transforming your business today with Payroll in Estonia by contacting one of our experts and finding out how payroll management can be simplified.
The national minimum wage in Estonia is €886 per month, effective from 1st January 2025.
Estonia has a flat personal income tax rate of 22% in 2025, which will increase to 24% in 2026, and applies to all types of personal income.
In Estonia, pension contributions are primarily funded by the social tax system, the majority of which is paid by the employer. Employers pay a total social tax contribution of 33% of an employee’s gross salary. 20% of this contribution goes towards pensions and the remaining 13% is for health insurance.
Employees can make a voluntary contribution to a pension scheme of 2% of their gross salary, although this is not mandatory.
The standard working hours in Estonia are typically 40 hours per week, Monday to Friday between 9am and 5pm.
Any hours worked beyond the standard limit of 40 hours are considered overtime. Employers must pay a 150% bonus for overtime hours and must be agreed between the employer and employee.
The average weekly working hours are capped at 48 per week over a 4-month period.
Employee’s leave consists of several types:
- Statutory time off or paid leave, which is 28 calendar days per year for full-time employees
- Public holidays (there are 12 national holidays per year in Estonia)
- Maternity, Paternity and Parental leave
- Sick leave
Termination of an employment contract in Estonia can occur in several ways:
- Termination during the probationary period
- By mutual agreement
- Dismissal in relation to performance or conduct
- Resignation
- Economic reasons
For more information about termination, please contact us.