Health insurance 13%
Unemployment insurance 1.6%
Income tax: 20% flat income tax
Paid time off: 28 days + bank holidays
Pade paternity leave: 30 days
Paid sick leave: 240 days
Parental leave: 435 days to be shared between the two parents
Paid maternity leave: 20 weeks
HQ country employment & payroll
Independent contractor agreements
Direct local employer setup
Availing of an Employer of Record services /full-service Professional Employer Organisation
As with every other country, there are certain costs associated with employing a worker in Estonia that come on top of the gross salary you are offering. An Estonian employer must contribute to a pension plan, health insurance and unemployment insurance. To view the exact percentages and amounts given the salary you are planning to offer, you can use our handy calculator tool.
Boundless as the Employer of Record Estonia files all pertinent taxes, and other contributions to the social system for the Estonia employee to be compliant.
In Estonia, both employers and employees have to pay taxes. Employers have to make contributions to the Unemployment insurance fund, as well as make pension and health insurance contributions. Employees pay taxes in the form of unemployment insurance and pension contributions, as well as income tax. To get a clear overview of both employee and employer taxes, use our salary breakdown calculator, submitting any additional data needed and get a downloadable pdf like this one.