Work Contract & Taxes

Before starting your (hopefully!) dream job, you must sign an employment contract. There will be two employment contracts, one for the employee, and another for the employer. An employment contract can be for a fixed term, or for an unspecified length. 

In most companies, there is a probation period of 4-6 months, and as a general rule, your employment contract is to be signed for an unspecified period. The full-time workload is 40 hours per week, averaging eight hours per day. All employees are entitled to at least 28 calendar days of vacation within a year.

Your salary is paid once a month in its net amount. It is the employer’s obligation to withhold all the necessary payroll taxes. In Estonia, the income tax is 20%, which means that you can keep most of your salary. Your employer is also obligated to pay the social tax, 33% of your gross salary, which is to be based on your actual gross income, and not subtracted from your salary. 

A salary is negotiated for a specific position. In Estonia, the wages usually aren't public (meaning that you don't know your coworkers' salaries), only for governmental positions. The minimum hourly wage in 2022 is €3.86 (gross) and the minimum monthly wage is €654 (gross). The average wage in Estonia in 2022 is €1,625 per month. The average hourly rate is €9.4.

You can book a free consultation at the International House of Estonia about documentation and settling in:…

Read more about employment contract conditions and terminations:…