Labour relations and social security
Investor considerations:
- The new Employment Contract Law with significant changes became effective from 1 July 2009.
- Trade unions and employers generally have a cooperative relationship; it is unusual in Estonia to strike.
- Social security contributions (33%) calculated from the gross employment income are payable by the employer.
- Employees do not pay social tax.
- Citizens of the European Union, European Economic Area and Switzerland do not need a separate permit to work in Estonia.
- A foreigner may work in Estonia as a member of the management body of a legal entity registered in Estonia, in order to fulfill management and supervision functions, for up to six months a year without a work permit or a residence permit for the purpose of employment, and without being registered with the Citizenship and Migration Board under short-term employment provided they have a legal basis for residing in Estonia
