Estonia — Business: Hiring Employees

Key facts

• Estonia has a relatively high minimum wage compared to other European countries, which is at least the Estonian average gross salary for employees.

Steps

1. Step 1: Register with the Estonian Tax and Customs Board — Businesses must register with the Estonian Tax and Customs Board (ETCB) and obtain a personal identification code (also known as an Eesti ID-code). This can be done online through the Estonian Tax and Customs Board's website.
2. Step 2: Obtain a Business Registration Certificate — Once registered, businesses must obtain a business registration certificate from the Estonian Business Register. This certificate confirms the business's registration and is required to open a bank account and conduct other business activities.
3. Step 3: Register with the Estonian Unemployment Insurance Fund — Employers must register with the Estonian Unemployment Insurance Fund and pay contributions for their employees. This fund provides unemployment benefits and other social services to employees.
4. Step 4: Inform the Estonian Labour Inspectorate — Employers must inform the Estonian Labour Inspectorate about new employees and provide details about their employment contracts and working conditions.
5. Step 5: Comply with Labour Law Requirements — Employers must comply with various labour law requirements, including payment of minimum wage, working hours, and annual leave.

Costs

• Registration with the Estonian Tax and Customs Board: €0 (free, but may require registration agent fees)

Timelines

• Registration with the Estonian Tax and Customs Board: 1-2 working days

Required documents

• Personal identification code (Eesti ID-code)
• Business registration certificate
• Employment contracts

Common mistakes

• Failing to register with the Estonian Tax and Customs Board or the Estonian Unemployment Insurance Fund