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Posted on January 31 2023

What are the benefits of working in Estonia?

By  Editor
Updated April 27 2023

Benefits of working in Estonia

  • The average salary in the country is 1754 Euros a month.
  • Estonia offers employee benefits like old-age pensions, social security benefits, maternity/paternity leave, etc.
  • The current employment rate in Estonia is 69.5%
  • Employees are expected to work up to 40 hours per week in Estonia.

Estonia is an economy with high-income people located in Northern Europe. The country ranks high on all human development indices. In addition, Estonia is also ranked highly on its quality of living. The country offers economic freedom and free education, making it an attractive destination for those looking to work abroad.

Is Estonia a good country to work in?

The cost of accommodation in Estonia is also lower than in many other European countries, so that employees can save money on housing. Additionally, both public transport and healthcare are free in Estonia, which means that employees have more disposable income to spend on other things. English is widely spoken in Estonia, so immigrants can feel at ease while communicating with others. The average salary in the country is 1754 Euros a month with a current employment rate in Estonia is 69.5%.

Benefits of working in Estonia

We will be discussing the benefits of working in Estonia in details, one by one. The benefits offered by the Estonian government for its residents have been mentioned below:

Working Hours and Vacations in Estonia: One of the significant benefits of working in Estonia is that it follows a five-day workweek from 9 AM to 5 PM. Employees are expected to work 40 hours per week, the standard workweek in many countries. Additionally, all Estonian workers are entitled to 28 days of paid leaves per year. Therefore, employees can enjoy an excellent work-life balance and have ample time to travel and explore the country.

Old-Age Pension: It is a type of state pension for citizens and foreigners based on their residence type. Estonia's pensionable age is 63 years and nine months for both men and women who have completed 15 years of pensionable service. It is expected to be raised to 65 by the year 2026.

Minimum Wage in Estonia: The minimum wage in the country is €584 per month. This may be lower than in some other European countries, but Estonia's cost is relatively low. Estonia levies an income tax of 20%, which is also lower than some other European countries. This means that workers in Estonia can keep more of their income and have more disposable income to spend on things like housing, food, and entertainment.

Healthcare: Estonia provides health insurance to all its working residents whose employers pay the social tax. The country offers health insurance to the following group of people:

  • Residents under the age of 19 years
  • Students
  • Residents with a child under the age of three
  • Employees who are paid the minimum monthly salary or more
  • Pregnant women
  • Residents who are registered as unemployed at the Unemployment Insurance Fund

Social Security Benefits in Estonia: Employees in Estonia who are staying in the country on a right of residence or temporary residency permit must be insured by their employers when social tax is paid at a 33% rate on all payments to migrant workers. This social tax allows the employees to be covered by health insurance and for accessing public healthcare in the country.

Maternity and Parental Leaves: The country provides a maternity leave of 20 weeks. A mother can use it 30-70 days before the child is born. Additionally, a childbirth allowance of €320 to €1,000 is granted to the parents depending upon the number of children. The state also funds parental benefits, so both parents are given a parental leave of 435 days. However, both mother and father are not eligible for this leave simultaneously.

Safety and Security: Estonia is one of the cleanest countries in the world, with a minimal crime rate, meaning it is a safe place to live and work. The country has minimal risk of scams, mugging, pickpocketing, etc.

Need help to apply for Estonia work visa? Y-Axis is here to assist you in all the procedures. Join us, to fulfil your abroad dreams!

If you found this blog engaging, then also read…

How to get a work permit for Estonia

Why is Estonia the new favorite destination of Indian students?

Estonia – the emerging market for Global Entrepreneurs

Estonia’s digital visa could attract 1400 people per year


Move to Estonia, working in Estonia


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