Global payroll in Estonia

Only 499 EUR per employee per month

We currently do not offer any services in this country.
We're sorry for the inconvenience...

Rivermate's global payroll solution helps companies hire remote employees in Estonia . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our global payroll solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Estonia.

1. Grow your team in Estonia with Rivermate as your global payroll provider

Payroll, benefits, taxes, and compliance can be difficult to manage in , particularly if you don't have established local relationships. You can hire employees in effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction to global payroll in Estonia

If you are interested in hiring a remote team in Estonia, or even just individual remote employees in Estonia, then you have come to the right place!

Rivermate is an Employer of Record (EOR) that offers Estonia payroll solutions. As a Estonia payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in Estonia. We are confident Rivermate’s payroll solutions Estonia will help you grow as a business—because now, you won’t have to worry about your payroll solutions Estonia. We take care of everything payroll!

With Rivermate, you can run Estonia payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.

Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!

3. How to set up global payroll in Estonia

Once you've determined the best Estonia payroll option for your company, you'll need to collect some information from employees in order to add them to your payroll. Begin by acquiring their personal identification number, tax deduction card, and emergency contact information. When an employee begins working and provides you with their tax deduction card, they become a part of the social security system and are eligible for benefits.

4. Taxation rules for global payroll in Estonia

Estonia has a complex tax system that affects both employers and employees. Employers must pay a social tax of up to 33% of gross salary for all employees, with the threshold varying by state. Furthermore, 20% of the total tax is allocated to pension insurance and 13% to health insurance.

The social security system in Estonia provides both contributory and non-contributory benefits, such as:

1. Health coverage

2. Unemployment benefits

3. Allowances for Unemployment

4. Family advantages

5. Benefits for disabled people

6. Funeral expenses

7. Pension protection

5. Payroll options for companies in Estonia

Companies that wish to expand their operations globally have four different payroll options in Estonia. These payroll options are:

1. Internal Payroll. This payroll option is applicable for already established companies in Estonia. It includes devoting an entire Human Resources staff to running the company's payroll procedures.

2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.

Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.

3. Estonia payroll outsourcing: Outsourcing your payroll to an Employer of Record in Estonia, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!

6. Payroll compliance Estonia

Payroll management entails maintaining accurate financial records and adhering to labor laws. For any given time period, net and gross salaries are recorded, and payslips are generated.

You must be in statutory compliance with benefits, taxes, and social security when processing payroll. These laws are subject to change, so unless you have access to local legal counsel, you'll need to rely on a payroll outsourcing company like Rivermate to ensure compliance.

7. How to manage payroll in Estonia

Companies that have a business presence in Estonia have different ways of managing payroll. However, most of the options you have for running payroll in Estonia are either expensive or require establishing a subsidiary in Estonia. The cheapest, most efficient, and most reliable payroll processing system in Estonia is by outsourcing payroll to Employers of Record (EOR) in Estonia. Rivermate is one of those Employers of Record.

At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in Estonia. We do this by taking care of your payroll-related needs, such as keeping track of your employees’ financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in Estonia. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.

Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in Estonia.

8. Entitlement and termination terms in Estonia

The procedure for terminating an employee varies according to the type of termination:

Employers have the right to quickly terminate an employment agreement in the event of gross misconduct. When an employee resigns, he or she may end an employment arrangement with writing notice, whether the contract is indefinite or definite. In this instance, the employee would be required to give 14 to 30 days' notice. When an employer initiates the termination of an employment agreement, the notice period is defined by the employment's tenure.

9. Compensation in Estonia

As of 2020, Estonian compensation laws require a minimum monthly wage of 584 EUR. However, many employees in the country earn at least 1,200 EUR per month. You must pay your employees at least once a month and withhold all payroll taxes at the source as an employer. Remember that a collective bargaining agreement (CBA) could change these laws, so check to see if your industry has an applicable agreement.

10. Working hours and overtime in Estonia

The typical workweek is 40 hours spread over five days of eight-hour shifts. Employees are permitted to take 11 hours of rest every 24 hours or 48 hours every seven days. Saturday and Sunday are typically rest days. Younger workers are subject to special rules.

11. Employee benefits in Estonia

Health insurance is financed through a social tax, the rates of which are listed above.

Health insurance in Estonia is intended to cover the costs of health services provided to insured persons, to prevent and cure disease, to finance the purchase of medicinal products and medicinal technical aids, and to provide benefits for temporary incapacity for work and other benefits.

Benefits such as company cars, laptops, mobile phones, and stock options are frequently negotiated.

12. Why choose Rivermate as your global payroll provider in Estonia

Establishing an entity in to hire a team takes time, money, and effort. The labor law in has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in via our Employer of Record (EOR) / PEO solution.

A woman relaxing and drinking coffee
Hire anyone, anywhere
Ready to get started?