Considerations for the investor:
- Trade unions and employers generally have a cooperative relationship; it is unusual in Estonia to strike.
- Social security contributions (34.4%) calculated from the gross employment income are payable by the employer.
- Employees do not make any personal social tax contributions. Employee’s part of unemployment insurance contributions and compulsory accumulative pension contributions are withheld from the gross income by the employer.
- Citizens of the European Union, European Economic Area and Switzerland do not need a separate permit to work in Estonia.
- A foreigner may work in Estonia as a member of the management body of a legal entity registered in Estonia, in order to fulfil management and supervision functions, for up to six months a year without a work permit or a residence permit for the purpose of employment, and without being registered with the Citizenship and Migration Bureaus of the Police and Border Guard Board under short-term employment provided they have a legal basis for residing in Estonia.
Estonia’s population of working age is just below one million, with approximately 600 thousand in employment. There are more than 350 thousand inactive people (source: www.stat.ee).
Based on recent surveys, the unemployment rate has decreased within the last year (according to the statistics of the Estonian Unemployment Insurance Fund there were officially less than 50 thousand people registered as unemployed in March 2013) and it is likely that the rate will continue to decrease.
8% (2013 IIIq)
825 EUR (2008);
784 EUR (2009);
792 EUR (2010);
839 EUR (2011);
887 EUR (2012);
930 EUR (2013 IIIq).
8 hours per day,
5 days per week
Age of retirement:
63 (both men and women);
65 starting 2017.
An employee is entitled to annual paid leave in the amount of 28 calendar days.