Estonia is a country in Northern Europe bordered by Latvia, Russia, the Baltic Sea, and the Gulf of Finland. Its territory also contains over 2,200 islands and islets. Estonia’s GDP ranks above average with a flourishing tech scene. It’s considered a developed country with a high-income economy ranking highly in the Human Development Index.

The minimum wage is EUR 725 per month, with a standard workweek of 40 hours per week, and 8 hours per day. Any work done past this is considered overtime and regulated by employment contracts.

Parental Leave

Pregnant employees in Estonia are entitled to 140 days of paid maternity leave, which can begin at least 70 days before the due date. Fathers are entitled to 10 days of paternity leave that can be taken before the birth date, and 2 months after the birth.

Fathers can receive their full salary with a maximum of 3x the minimum wage. These leaves are paid for by social security.

Employees in Estonia are also entitled to paid leave to raise a new child or help a postpartum partner, both of which are paid for by the state. This parental leave can be taken up until the child turns 3 years old. The parents can take up to 435 days of leave, but only one parent can take it at a time.

Employees can also receive adoption leave and childcare leave.

Sick Leave

Estonian employees are allowed up to 182 days of paid sick leave each year, which is paid at 70% of the average wages. This leave is paid by the employer until the 8th day, and after that the employee receives sickness benefits from social security.

Paid Leave

There are 12 public holidays in Estonia, and employees are also entitled to at least 28 days of paid time off each year, accrued at 2.33 days per month.

Process

Employment contracts can be terminated in cases of misconduct or employee resignation. Misconduct includes negligence, fraud, and other work offenses. If the termination reason is misconduct it requires a written warning and the employee gets a chance to explain their actions.

Notice Period

The notice period depends on how long the employee has worked at the company:

• 0-1 years = at least 15 days
• 1-5 years = at least 30 days
• 5-10 years = at least 60 days
• 10+ years = at least 90 days

Severance Pay

If an employee is terminated for redundancy, the employer is generally required to pay 1 month of salary. Employees who have worked at a company for 5-10 years receive 1 more month of wages, and those who have worked 10+ years receive 2 additional months of wages.

A 13th-month salary is not mandatory in Estonia, however it is common for employers to give employees annual bonuses.