Work conditions in Estonia

The Active Population in Figures

Working Conditions

Legal Weekly Duration

Legal duration is 40 hours a week.

Retirement Age

63 for men

60 for women

Working Contracts

There are fixed-term contracts, (their maximum duration is five years) and contracts with unspecified terms. A minimal part of the working populations has no written contract; conditions are agreed orally. These contracts cannot be extended over two weeks.

Labour Laws

Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Cost of Labour

Minimum Wage

The minimum wage is EUR 584 per month in 2021 according to Eurostat.

Average Wage

According to Statistics Estonia data, the average salary was around EUR 1,316 per month in 2019 (latest data available).

Social Contributions

Social Security Contributions Paid By Employers: The rate is 33.8% (20% for social security, 13% for health insurance and  0.8% for unemployment insurance).
Social Security Contributions Paid By Employees: The rate is 3.6% (2% for a pension fund and 1.6% for unemployment insurance).

Social Partners

Employer Associations

EVEA - Estonian Association of SMEs
APLP - Association of Small Scale Industries

Social Dialogue and Involvement of Social Partners

There are 2 major trade unions in Estonia:

 

 

 

- EAKL - Confederation of Estonian Trade Unions

- TALO - Estonian Employees' Unions' Confederation.

It should be noted that trade unions were reorganized following the independence of the country in the 90's. The trade unions gave up their role of acting as an "executing organ" and supporter of the Soviet Union system to gain freedom in acting in the state system and economy. The principles of social partnership were therefore established quite recently. A Trade Unions Act was drawn up and guarantees the right for employees to join a trade union.

 

Labour Unions

Confederation of Estonian Trade Unions
Estonian Employees' Unions' Confederation

Unionisation Rate

Only 14% of Estonian employees are member of a Trade Union.

Labour Regulation Bodies

Ministry of Social Affairs