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Estonia Compensation & Benefits

You need to prepare benefits and compensation for all employees before you hire a single person. Meeting Estonia’s compensation laws will ensure that you stay compliant and that employees get paid a fair wage. You should also add statutory benefits to your Estonia benefits management plan, then include additional options to show employees that you appreciate their work.

Globalization Partners provides Estonia compensation and benefits outsourcing to make it easy for companies to expand and harness talent all over the world. We can add your employees to our payroll to make sure they get paid the right amounts at the right times. We’ll also include them in our Estonia benefits management plan to make sure they get the benefits they deserve.

Estonia Compensation Laws

Estonia compensation laws dictate a minimum monthly wage of 500 EUR a month. However, many employees make at least 1,200 EUR a month in the country. As an employer, you’re required to pay employees at least once a month and withhold all payroll taxes at the source. Keep in mind that a collective bargaining agreement (CBA) could change these laws, so it’s best to check and see if your industry has an applicable agreement.

Guaranteed Benefits for All Employees

Employees in Estonia should get 12 days off for the country’s holidays. The working day preceding several holidays should also be reduced by three hours. You need to make sure employees get 28 calendar days of paid time off each year, including working and non-working days.

Female employees should get 140 days of maternity leave that can begin anywhere between 30 to 70 days before the due date. The state pays for this maternity benefit as well as paternity leave. Fathers should get up to 10 working days of paternity leave anywhere from two months before to two months after the birth. The state will also pay for parental leave up until the child’s third birthday.

Best Way to Disperse Benefits in Estonia

We recommend adding supplemental benefits that employees may expect to your Estonia benefits management plan. Dispersing commonly negotiated benefits such as a company car, laptop, mobile phone, or share options will encourage employees to stay with your company. If you’re not sure what to provide, try talking to employees to see what benefits they care about the most.

Restrictions for Benefits and Compensation

Your company can’t give employees any money or benefits until you have a registered entity in the country. While it may seem simple to set up a subsidiary, it can take up to a few months before you’re even ready to start the hiring process. Companies working with a global PEO such as Globalization Partners don’t have to worry about the same restrictions. You can use our existing PEO and Estonia compensation and benefits outsourcing services to start working in a day or two — without any worries about compliance.

Partner With Globalization Partners

Globalization Partners is ready to help you start working in Estonia and beyond. Contact us today to learn more about our global expansion platform.