Estonia has a three-tier pension system available to employees: state pension, mandatory funded pension, supplementary funded pension.
The state pension is available to employees upon reaching retirement age who have worked in Estonia for a minimum of 15 years.
The mandatory pension is available to all employees who have made monthly contributions to the Social Tax. This contribution is mandatory for all employees born from 1st January 1983. Employees contribute 2% of their gross monthly salary towards a selected pension fund and an additional 4% will be added by the State. Employees born prior to this date can opt to pay The supplementary pension is made in the form of voluntary contributions or a pension contract with a life insurance scheme.
Employees are entitled to sick leave benefits in the event of illness, workplace accidents or injury upon presentation of a medical certificate.
Sick leave entitlement begins from the second day of illness. The second to the fifth day of leave are paid by the employer and any subsequent leave is paid by the Estonian Health Insurance Fund. An insured employee has the right to receive sickness benefit for 182 consecutive calendar days.
The sickness benefit is paid at a rate of 70% average income in the six months prior to leave.
For a workplace accident, the employee may be entitled to up to 100% of their average salary based on the assessment of a medical panel.
Maternity & Paternity
A pregnant employee is entitled to up to 140 calendar days of pregnancy and maternity leave, which can begin up to 70 days prior to the estimated due date.
A medical professional will issue a maternity certificate which must be presented to receive maternity pay.
Women are entitled to 100% pay for the duration of their maternity leave, funded by the Estonian Health Insurance Fund (Haigekassa).
Paternity leave of up to 30 days may be granted until the child reaches the age of three. Paternity benefit is paid by the employer and is compensated based on the average wage, up to a maximum of three-time Estonian mean gross wages. The employer has the right to submit an application to the Social Insurance Board for compensation of paternity benefit.
Unpaid Parental Leave: a mother or father may take up to 10 days’ unpaid leave to care for a child under the age of fourteen.
Academic Leave: employees are entitled to up to 30 days’ leave for job-related training and education. Up to 20 academic leave days are payable by the employer at a rate equal to the employee’s average daily pay.