Estonia Workforce Solutions and EOR Services

Hire and Manage your Workforce in Estonia

Estonian economy is on the rise: GDP expected to grow

The European Commission has declared that the Estonian economy is surging ahead of most EU countries, even in the face of restrictive measures being put into place. The first quarter of 2021 showed a 4.8% q-o-q expansion and as long as exports continue to do well it will be difficult for other economic forces to slow down Estonia’s growth rate come the end of 2021. According to the Bank of Estonia, the country’s economy is recovering more quickly than expected from the crisis, and so additional fiscal stimulus should be avoided. This will help prevent some sectors from overheating as restrictions because of the pandemic are eased throughout this year. In 2019, Estonia ranked #18 in the World Bank’s Ease of Doing Business index (Sources: European Commission, Bank of Estonia, and Invest in Estonia).

XML employs workers for you in Estonia
Quick, Simple, Compliant.

A trusted professional employment organization with in-depth knowledge of the market in Estonia,  XML International provides you with end-to-end personalised solutions to recruit and manage remote team members for your activities in Tallinn or any other city in Estonia, regardless of the size of your organisation or your industry.

Employees will be employed pursuant to local labour laws, and all required social security and taxation will be paid to the local Authorities.

Estonia Country Information

1.1 The information we provide on this site is for general information only. We make no warranty or representation that any information provided on our Site, or information provided by 3rd parties via links will be accurate, compatible with all systems, or secure.


1.2 Whilst every reasonable endeavour has been made to ensure that all information provided on Our Site is accurate and up to date, We make no warranty or representation that this is the case.  We make no guarantee of any specific results from the use of Our site.


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1.4 Commercial use of the information on Our Site is permitted, however We make no representation or warranty that this content is suitable for use in commercial situations or that it constitutes accurate data and / or advice on which business decisions can be based.


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1.7  If, as a result of Our failure to exercise reasonable care and skill, any digital content from Our Site damages your device or other digital content belonging to you, if you are a consumer, you may be entitled to certain legal remedies.



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Official Languages


Estonia Minimum wage

Minimum wage in Estonia is 584 EUR per month

Estonia Normal working hours

Normal working hours in Estonia is 8 hours a day and 40 hours a week. The duration of shifts may not exceed 12 hours. 

Estonia Annual leave

Workers are entitled to 28 paid leave per year.

Estonia Sick leave

In case of sickness, the worker is entitled up to 182 calendar days of paid sick leave with a maximum of 250 days per year. The gross wage during this period is 70%of the last year’s average salary. The employer pays the wage from the 4th to the 8th day of sickness and the state starting from the 9th day. 

Estonia Maternity leave

Female workers are entitled to 140 calendar days of pregnancy and maternity leave. The Health Insurance Fund pays maternity benefit (on the basis of a maternity leave certificate) to women who were working prior to going on pregnancy and maternity leave. The pregnancy and maternity leave may be taken 30-70 days before the date of birth (30th to 36th week of pregnancy). If a woman goes on pregnancy and maternity leave 30 days or more before the expected due date, she is paid the benefit for all 140 calendar days. If she goes on pregnancy and maternity leave later, those days are deducted from the 140 calendar days. The maternity benefit is paid starting from the first day of exemption from work. The HIF calculates the benefit for temporary incapacity for work based on the average income per calendar day earned by insured persons on the basis of the data on payment of social tax available from the Tax and Customs Board.

Estonia Paternity leave

Working fathers are entitled to 30 calendar days of paternity leave.

Estonia Notice Period

Notice period depends on the length of the employee’s employment relationship with the employer. An employer must notify the employee of the extraordinary termination of the employment contract in advance if the employee’s employment relationship has lasted:

  • less than 1 year of service – at least 15 calendar days;
  • 1 to 5 years of service – at least 30 calendar days;
  • 5 to 10 years of service – at least 60 calendar days;
    10 or more years of service – at least 90 calendar days.

Estonia Probation period

Probation period may last up to 4 months. For the termination of the employment contract during a probationary period the other contracting party shall be notified about it 15 calendar days in advance

Estonia VAT

The standard VAT rate is 20%.

(Sources: Eesti )

Unlock your business potential in Estonia with XML International.

If you want to benefit from XML employment expertise in Estonia, we invite you to fill the form below and we’ll get back to you shortly.

XML employs workers for you in Estonia

Quick, Simple, Compliant

XML International, one of the best workforce solutions and employer of record services providers for Estonia, supports the set-up and the management of your international workforce for all your activities in Estonia. Our invaluable input consists of streamlining and handling for you the complete employment lifecycle of your teams in Estonia. We give you all the keys to handle you staff in Tallinn or any city in Estonia. XML’s knowledge of  labour Estonian laws, tax and social security system, and employment regulations allows you to tackle the challenges of local compliance in Estonia, navigate all the local complexities and avoid pitfalls.

The Best Employment Outsourcing Solutions for Estonia

Smart Management of your Employees in Estonia

Among our top priorities, compliance with Estonian employment regulations and labour laws is number one. In addition to talent acquisition, recruitment services, and workforce management, we also ensure that our clients’ workforce management in Estonia is aligned with Estonian tax and social security rules and the latest immigration processes, including visas and work permits.

Here is the list of our core services supporting your activities in Estonia.

• GEO Services for Estonia (PEO and EOR)

• Contingent Workforce Services for Estonia

• Managed Solutions Programs for Estonia

• RPO & Staff Mobilization for Estonia

Do Business in Estonia, with or without creating your local legal entity

Take advantage of the targeted outsourcing solutions proposed by XML International for your expansion in Estonia or for your employees already based there. We offer a comprehensive series of bespoke and scalable outsourcing solutions specially designed for the Estonian market.

They range from professional employer organization employment (PEO), employer of record, and contingent workforce employment services, to help you grow effortlessly and successfully in Estonia without any complications. We can also help you source, recruit, and onboard new team members locally, even if you don’t have an office in Estonia.

XML provides you with everything you need to start doing business in Estonia or to optimize your business if you are already operating there, leading to significant bottom-line savings and getting your business activities up and running in just days. Get in touch with the XML team to learn how we can boost your activities in Estonia in a cost-effective way. 

Get started now and make the most of business in Estonia today!

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XML has expertise and resources to meet your organization’s workforce needs wherever, and in whichever field these might be.