Highly digitalised economy with a small, English-proficient IT and engineering talent pool. Employer on-costs run ~34% on top of gross salary. Here is what to know before your first Estonia hire.
Employment in Estonia runs under its national labour code, which sets the floor for wages, working hours, leave, and notice. Here are the essentials before you make an offer.
Employer on-costs in Estonia run ~34% of gross salary. Employers pay 33% social tax plus 0.8% unemployment insurance on gross pay.
These statutory costs are paid at cost on top of TGTC's flat $499/mo fee, so you always see the real employer cost, not a marked-up percentage.
Employees pay their own income tax and social-security share, withheld at source. Under an EOR, TGTC runs that payroll withholding for you.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
TGTC employs your hire in Estonia on a compliant local contract, runs payroll and benefits, and passes statutory costs through at cost. One invoice, flat $499 per month.