Benefits in Estonia

All Estonia employees are entitled to public health care, which kicks in 14 days after the commencement of work and ends two months after termination. Employers use the employee information to register the employee with the Estonian Tax and Customs Board.

If an employer requires that an employee travels for work, they must provide the employee with a minimum per diem allowance of €22.37. The budget can be lowered by up to 70% if the trip includes free catering (subject to fringe benefits tax).

The maximum amount of per diem exempt from taxation is €50 daily (for international assignments) for the first 15 days and €32 for each of the following days.

People who become involuntarily unemployed (except for leaving on their initiative, by mutual agreement of the parties, or due to breach of contract by the employee) are entitled to a government unemployment insurance benefit. The rate of 40-60% of their average salary for up to 360 calendar days if they have contributed to social security and unemployment insurance for at least 12 months during the last three years

The unemployment benefit depends on the employee’s salary, but there are minimum and maximum amounts capped. For the first 100 calendar days, the unemployment insurance benefit is 60% of the employee’s average salary (currently max €64.12 gross per day) and 40% of the employee’s average wage from the 101st day onwards (currently max €42.74 gross per day).

If the employee’s overall length of employment is up to five years, they will be eligible for the unemployment insurance benefit for up to 180 calendar days. If the employee’s overall employment length is 5-10 years, they will be eligible for the unemployment insurance benefit for up to 270 calendar days. If the employee’s overall length of employment is more than ten years, they will be eligible for the unemployment insurance benefit for up to 360 calendar days.

A few companies offer private pension to employees in addition to the statutory government benefit.

More and more tech companies compensate employees for day 1 to 3 of sickness.

Many tech startups offer private healthcare to their employees and dependents, including dental and vision.

Many startups in Estonia offer stipend allowance to be spent on sports benefits or compensate employees’ costs on sport-related expenses.

Some startups also offer a book stipend.

Some companies offer referral bonuses.

Most tech companies in Estonia offer flexible working hours and location, which must be included in the employment contract.

Many companies cover monthly phone plans of employees.

Most tech companies give employees new laptops, screens and other necessary tools to optimize work.

Many companies reimburse 50% to 100% of the cost of a gym membership.

Most tech companies offer paid learning and career development assistance to employees.

Many startups in Estonia offer equity to employees ranging from 0.05 to 1%.