A Founder's Guide to
HR & Hiring
in Estonia (2026)
Everything founders need: employment law, contracts, payroll, mandatory benefits, work permits, and the full recruitment process.
| Factor | Employee | Contractor |
|---|---|---|
| Contract type | Employment contract | Service contract (B2B invoice) |
| Tax responsibility | Employer withholds and pays | Contractor pays own taxes |
| Misclassification risk | N/A | High if resembles employment |
Warning: If a B2B contractor relationship looks like employment, authorities can reclassify it — demanding social tax, interest, and penalties retroactively.
All employment must be based on a written employment contract. Must include: parties, start date, job description, workplace, working time, salary, and notice periods.
| Benefit | Details | Who pays |
|---|---|---|
| Annual leave | 28 calendar days min | Employer — at regular salary |
| Social tax | 33% of gross salary | Employer (on top of gross) |
| Sick leave days 4–8 | 70% of salary | Employer |
| Parental leave | Up to 435 days | State-funded; employer keeps role |
Total employer cost: To pay net €1,200, budget ~€1,792 total — including 33% social tax and 0.8% unemployment insurance on top of gross.
| Employee type | Requirement |
|---|---|
| EU/EEA citizen | No permit needed |
| Non-EU with Estonian residency | Employment registration with PPA |
| Non-EU from abroad | Work permit from PPA (30–60 days) |
Job description & posting
Draft a clear job description. Post on cv.ee (dominant in Estonia), LinkedIn, and target language boards.
CV screening — €190/round
Screen against criteria and create a ranked shortlist with assessor notes.
Interviews — €55/hr
Structured interviews with a written assessment report per candidate.
Offer, contract & onboarding
Issue written contract before start date. Register employee with EMTA.
€886/month gross (2025). Reviewed annually.
One month's gross salary, minimum €1,500. Standalone: CV screening €190/round, interviews €55/hr.
Related guides
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