Hire Employees & Contractors


Compliantly hire your distributed team members in


Person working on laptop

Hiring in


isn't so simple. Borderless can help.

To hire new employees in


, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in


while staying fully compliant with local laws and compliance.

Primary Language



Euro (€, EUR)

Payroll Frequency


Public Holidays

12 days

Employer Taxes


Cost of Living Index

$$ (54 of 140, 2023)

Statutory Leave

28 days

Sick Leave

182 days

Maternity Leave

140 days

Important: Risks of misclassification

In many countries like


, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

The minimum wage in Estonia is EUR 584 per month.

Overtime Pay

The standard working hours in Estonia are 8 hours per day and 40 hours per week. Overtime pay of 1.5 times the employee's regular wage is mandatory, and employees can work a maximum of 8 hours of overtime per week.

Additional Pay

  • Childcare leave: Parents with children who are 14 years or younger are entitled to up to 6 days of paid leave monthly.
  • Adoption leave: Employees who are adopting a child are entitled to paid leave to fulfill the adoption process and to spend time with their child.

Payroll Cycle

Employee payments will be made in equal monthly instalments, payable in arrears, on or before the last working day of each calendar month.

Employer Costs & Taxes

  • 33%: Social Security
  • 20%: Financing public pension insurance
  • 13%: Financing public health insurance

Employee Costs & Taxes

  • 20%: Personal Income Tax

Employment Information

Termination Process

Terminations in Estonia must have a written explanation for the reason for the termination. Employers can end employment agreements if there is employee misconduct.

Notice period

The notion period is based on how long the employee has worked with the employer.

  • Employees who worked less than 1 year: 15 days
  • Employees who worked 1 - 5 years: 30 days
  • Employees who worked 5 - 10 years: 60 days
  • Employees who worked more than 10 years: 90 days

Probation Period

The maximum probation period is 4 months.

Severance Details

Severance package in Estonia is determined by the reason of the termination and the length of employment.

  • Termination due to redundancy: 6 months of salary
  • Employees who have worked for 5 - 10 years: 1 month of salary
  • Employees who have worked for more than 10 years: 2 months of salary
  • Termination during fixed term contracts: Salary that the employee would be entitled to until the end of their contract
Benefits of working in a country abroad

Borderless Benefits Packages in


When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in


Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo