There are many factors that influence a candidate’s decision when selecting one job over another but offering attractive benefits and compensation can help your company stand out. You can start by incorporating statutory benefits into your Estonia benefits management plan, and then include additional options to show employees that you appreciate their work.
Estonia compensation laws
Estonia compensation laws dictate a minimum monthly wage of EUR 820 a month as of 2024. However, many employees make at least EUR 1,500 a month in the country. Employers are required to pay employees at least once a month and withhold all payroll taxes at the source.
Keep in mind that a Collective Bargaining Agreement (CBA) could change these laws, so it’s best to check and see if your industry has an applicable agreement.
Guaranteed benefits in Estonia
Employees in Estonia should get 12 days off for the country’s holidays. The working day preceding several holidays are often reduced by 3 hours. Companies also need to make sure employees get 28 calendar days of paid time off each year, which includes working and non-working days.
Expecting employees should get 140 days of maternity leave that can begin anywhere between 30 to 70 days before the due date. The state pays for this maternity benefit as well as paternity leave. Fathers are entitled to up to 30 working days of paternity leave, which can be taken anytime from 30 days before the expected due date until the child reaches the age of 3. The state will also pay for parental leave up until the child’s 3rd birthday.
Estonia benefits management
We recommend adding supplemental benefits that employees may expect to your Estonia benefits management plan. Dispersing commonly negotiated benefits such as a company car, laptop, mobile phone, or share options will encourage employees to stay with your company. If you’re not sure what to provide, try talking to employees to see what benefits they care about the most.
Restrictions for benefits and compensation
Your company can’t offer benefits until you have a registered entity in the country. While it may seem simple to set up a subsidiary, it can take up to a few months before you’re even able to start the hiring process. Companies working with a global EOR such as G-P don’t have to worry about the same restrictions. You can use our existing subsidiary to start working in a fraction of the time — without any worries about compliance.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading global employment platform is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.