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Payroll in Estonia

Payroll in Estonia runs in EUR on a monthly payroll, typically paid by the last working day of the month. cycle, with statutory employer contributions and no statutory 13th-month payment; bonuses are discretionary or set by employment contract/collective agreement.. Gracemark operates it end-to-end, humans, not tickets.

Currency
EUR, Euro
Payroll cycle
Monthly payroll, typically paid by the last working day of the month.
Working week
Standard working time is 8 hours/day and 40 hours/week; overtime requires employee consent and is compensated at 1.5x or by equivalent time off [1](https://www.riigiteataja.ee/en/akt/506022018003).
Minimum wage
Monthly minimum wage is €820 gross (hourly €4.86) effective 1 January 2024 [2](https://news.err.ee/1609187419/2024-minimum-wage-in-estonia-confirmed-at-820-per-month).
13th-month
No statutory 13th-month payment; bonuses are discretionary or set by employment contract/collective agreement.
Employer cost
Employer pays social tax of 33% of gross wage funding pension and health insurance, plus unemployment insurance contribution of 0.8%.
Probation
Probation period may not exceed 4 months.
Notice period
Notice period ranges from 15 to 90 days depending on tenure; severance obligations apply on redundancy, partly covered by the Unemployment Insurance Fund.

Two ways to run payroll in Estonia

Own-entity payroll

For long-term presence in Estonia. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Northern Europe time.

EOR-run payroll

No entity in Estonia? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in typically 1–3 weeks via eor, no local incorporation.

Compliance essentials in Estonia

  • Employment model: EOR vs. contractor vs. local entity for Estonia
  • Mandatory benefits, social contributions and any 13th-month obligation
  • Termination rules, statutory notice and severance exposure
  • Contractor misclassification risk and how local law defines employment
  • Currency (EUR), payroll cycle and Estonian-language contract requirements

Get a payroll quote for Estonia

Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.

Get your Estonia answers

Tell us a little about your plans in Estonia. A real specialist reviews every request and replies personally within one business day, with the exact numbers for your hire.

A specialist replies within one business day. Free, and no obligation. We use your details only to answer this request, never sold or shared.

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Deeper guide
Hiring guide: Estonia β†’
Employ without entity
EOR services β†’
All countries
Global payroll overview β†’

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