Estonia is located in Northeast Europe with a mainland and more than 2000 surrounding islands in the Baltic Sea. With a population of 1.3 million people and key industries including industrial, energy, and services, Estonia is a great place to begin global expansion.
Managing operations in Estonia can be challenging, with language barriers and complicated payroll and tax regulations. Employees must be registered by the employer and covered by the social and health insurance for Estonia, and employers must also pay 33% of the employee gross income in taxes.
Labor and Payroll Considerations:
- Minimum wage is €584 per month
- Employment contracts should be written
- Employers must be registered with the Tax and Customs Board
- New employees must be registered with social insurance authorities, the Estonia Commercial Register, the eBusiness Register, and the Estonian Tax and Customs Authority
- Income tax is withheld from employee pay and submitted to the Tax and Customs Board
- Social security contributions are withheld from employee pay, and employers must also contribute to social security
- Foreign workers who are not EU, EEA, or Switzerland nationals need a D visa to enter the country and work for a maximum of 6 months
Blue Marble has simplified global payroll in Estonia with cloud-based payroll technology and aggregated reporting to give you real-time access to your payroll costs across countries and currencies. Our in-country experts ensure compliance with the latest regulations so you can focus on growth. To learn more about payroll in Estonia, click here