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Estonia – Employment Terms and Conditions

Working Hours in Estonia

The standard working hours in Estonia are eight hours per day and 40 hours per week. Any work beyond this must be compensated as overtime. However, this rule only applies to workers in the private sector. Public sector employees have a slightly different schedule, working seven hours per day and 35 hours per week.

Employment Rights and Benefits in Estonia

Paid Vacation and Sick Leave

Employees in Estonia are entitled to 28 days of paid vacation per year. This increases to 35 days after eight years of service with the same employer. In addition, workers are entitled to 10 days of sick leave per year, which can be extended in cases of serious illness.

Social Security Benefits

All employees in Estonia must be registered with the Estonian Unemployment Insurance Fund (EUIF). Employers must contribute 33% of their employee’s salary to the EUIF, while employees must contribute 2%. This contribution provides employees with a range of benefits, including healthcare, maternity leave, and a pension.

Maternity and Paternity Leave


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Expectant mothers in Estonia are entitled to 140 days of maternity leave, paid at 100% of their salary. Fathers are entitled to 10 days of paternity leave, paid at 100% of their salary.

Severance Pay

If an employee is terminated without just cause, they are entitled to receive severance pay. The amount of severance pay depends on the length of service with the employer. For example, employees with less than a year of service are entitled to one month’s pay, while those with more than 10 years of service are entitled to three months pay.

Pensions

All employees in Estonia are entitled to a pension through the EUIF. The pension is calculated based on the number of years of service and the average salary earned during the last five years of service. To qualify for a pension, employees must have contributed to the EUIF for at least 15 years.

Types of Pensions for Expats in Estonia

Expats who are living and working in Estonia may be eligible for a pension through the EUIF. However, they must meet certain requirements. Firstly, they must have legal residency in Estonia and have contributed to the EUIF for at least 15 years. Secondly, they must be at least 63 years old and have stopped working.

Expats who do not meet these requirements may still be able to receive a pension through a private pension plan. These plans are not regulated by the government and are offered by a range of private companies.

Retirement Age in Estonia

The retirement age in Estonia is 63 years old for both men and women. However, there are some exceptions to this rule. For example, workers in certain industries, such as mining and construction, may be able to retire at an earlier age due to the physical demands of their work.

In addition, workers who have contributed to the EUIF for at least 35 years may be able to retire at age 60 with a full pension. Those who have contributed for at least 20 years may be able to retire at age 63 with a reduced pension.

In conclusion, workers in Estonia are entitled to a range of employment rights and benefits, including paid vacation and sick leave, social security benefits, and severance pay. All employees must be registered with the EUIF, which provides a pension to those who have contributed for at least 15 years. Expats may be eligible for this pension if they meet certain requirements, or they may be able to receive a private pension plan. The retirement age in Estonia is 63 years old for most workers, with some exceptions for certain industries and those who have contributed to the EUIF for a certain number of years. It is important for both employers and employees to understand these employment terms and conditions to ensure that workers are being treated fairly and in accordance with the law.

Furthermore, employers should ensure that they are providing their employees with the necessary benefits and adhering to the working hour requirements to avoid any legal issues or disputes. Employees, on the other hand, should be aware of their rights and benefits to ensure that they are receiving fair treatment from their employers.

In summary, the employment terms and conditions in Estonia provide workers with a range of rights and benefits to ensure that they are being treated fairly in the workplace. From paid vacation and sick leave to pensions and retirement age, these regulations are in place to protect employees and ensure that they are receiving the necessary support throughout their careers. It is important for both employers and employees to understand these regulations to avoid any legal issues and maintain a healthy and productive work environment.


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