Our Expertise
Managing a global workforce in Estonia
TopSource Worldwide's expertise in global EOR, payroll and compliance ensures that your business can seamlessly adapt to the Estonian market. With our knowledge of local labour laws and innovative digital infrastructure, we provide tailored solutions to manage your workforce effectively, ensuring compliance with Estonian employment regulations and optimising operational efficiency.
Extensive expertise
Our team of experienced, knowledgeable staff collectively provide up-to-date employment information across 180 countries, so you can always get accurate advice.
Entity-free employment
Feel free to hire employees from all over the world without being weighed down by setting up entities, running complex payroll or recruiting a hiring team.
Payroll without hassle
Have the confidence that your staff will always be paid accurately and on time, so that you can focus on your core business activities and work towards your success.
Always-on support
Access helpful, relevant, personalised advice whenever you need it, along with expert-led recruitment policies and tried-and-tested HR best practices.
"With TopSource we were able to have employees hired or maintained in Nutreco without having to establish an entity in these countries for only 1-2 employees. I think most countries are covered by TopSource, so they can help us with almost all cases. Good advice on conditions and direct contact with employees. Invoicing done directly to the company. An easy process compared to hiring employees by ourselves."
Annette van Duijnhoven
”We searched the market for a local payroll vendor in 2014 and we chose TopSource as our partner. We were looking for error-free and timely payroll processing and TopSource Worldwide delivers this, saving us time and money. We have worked together for 8 years now and would recommend them to anyone."
Praveen Lihinar
Personalised Employer of Record services in Estonia
TopSource Worldwide offers personalised Employer of Record (EOR) services tailored to meet the specific needs of your business in Estonia. This includes handling employee onboarding, payroll processing, tax compliance, employee benefits management, and HR support. Our EOR services ensure that your business meets all legal and regulatory requirements, providing a hassle-free solution to manage your Estonia-based employees.
End-to-end Estonia payroll services
Looking to expand into Estonia? Our unparalleled expertise in global payroll services ensures that your business can seamlessly navigate the complexities of payroll on a global scale, supporting your Estonia expansion initiatives.
Global entity management
Venturing into the Estonian market can be both exciting and challenging. With distinct business regulations, cultural nuances, and economic landscapes, it's essential to have a clear roadmap for your business establishment journey.
Accounting
Whether your goal is to process your purchase-to-pay transactions with minimum errors or manage your expense claim procedure, our team of experts can handle your accounting responsibilities, allowing you to focus on your core business and save time and money.
Global EOR services
Managing a diverse global workforce can be complex. This is where TopSource steps in as an invaluable employer of record services partner for companies seeking to expand their global reach while ensuring compliance with local employment laws and regulations.
Global Expansion Simplified
How to do business in Estonia
Entering the Estonian market presents a mix of excitement and challenges. Given unique business regulations, cultural intricacies, and economic dynamics, a well-defined roadmap is crucial for a successful business establishment.
TopSource Worldwide is with you at every stage. Whether it's navigating local regulations or facilitating seamless operational transitions, our expertise ensures a swift and efficient process for establishing your business in Estonia.
Estonia Insights
Key insights into Estonia's landscape
VAT rates: Estonia has a standard VAT rate of 20%, a reduced rate of 9%, and a zero rate for specific goods and services.
Ease of Doing Business rank: Estonia ranks 18th in the World Bank's Ease of Doing Business Index, indicating a favourable business environment.
Consumer Confidence Index: As of 2022, Estonia's Consumer Confidence Index was 5.8, reflecting positive economic sentiment.
Employee maternity/paternity leave: Maternity leave is 140 days, and paternity leave is 10 days. Parents can also take shared parental leave.
Employee termination period: Standard termination notice is 15 days, but specific terms may vary based on employment contracts.
Employee salary pay date: Wages are typically paid monthly, with payment dates agreed upon by employers and employees.
Bank holidays: Estonia observes national holidays, including New Year's Day, Independence Day, and Christmas, with 12 public holidays in total.
An overview of the main statutory benefits
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.
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.
Contractual provisions
Public healthcare is funded by the Health Insurance Fund scheme and is provided by the national health system. The Fund signs annual contracts with medical providers and covers the cost for medical expenses of insured employees. Employees are able to access the healthcare scheme following completion of their first month of employment.
Estonian citizens will incur minimal fees for some outpatient treatments and consultations.
A medical examination should be carried out within the first four months of employment and reviewed every three years, or sooner if advised by a doctor.
It is a legal requirement for employers to provide a new employee with a full overview of the workplace rules and guidelines, including health and safety procedures.
Employers may choose to provide a probationary period in the contract of employment; the maximum term for probation is four months. It is currently not permissible for the probationary period to be extended; however, this is being reviewed in the case of employee sickness.
If the employer wishes to terminate the contract at the end of the probation period, they must provide fifteen days’ notice.
A regular working week consists of 8 hours per day and 40 hours per week.
Employees working more than six consecutive hours are entitled to a rest break of at least 30 minutes.
It is the responsibility of the employer to keep a record of the hours worked by its employees; this information can be requested by the Labour Inspectorate at any time.
Any work carried out exceeding the 40-hour working week is considered overtime.
Overtime work can be undertaken:
- upon mutual agreement between the employer and employee;
- in unforeseen circumstances at the request of the employer in the prevention of damage.
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