Updated June 9th 2025

All About Offering Employee Benefits in Estonia

Hire the best talent in Estonia with the information you need to offer a competitive benefits package and stay compliant.

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Required Benefits in Estonia

Estonia’s strong social security system ensures employees receive essential benefits, but if you really want to attract and keep top talent, going beyond the basics matters. That’s where Justworks comes in. We make it simple for small businesses to hire in Estonia without setting up a local entity, while giving you the tools to stay compliant, save time, and become an employer of choice.

Ready to elevate your hiring game? Let’s dive into the core benefits you’re required to offer, and the extra perks that can set your business apart.

Social Security

Estonia’s social security system provides a broad safety net for employees, funded through employer and employee social tax. It covers key areas such as public healthcare, state pensions, unemployment insurance, and parental benefits. Employees automatically gain access to these benefits through formal employment, with contributions ensuring coverage for medical services, sick leave compensation, retirement income, and support during unemployment or parental leave.

Time Off

All employees in Estonia are entitled to 28 days of paid leave per year on top of receiving 12 paid national holidays off.

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Offer Competitive Benefits

A robust employee benefits package proves a powerful recruitment tool in Estonia. Consider incorporating the following benefits.

Supplemental Health Insurance

Although public healthcare is available, private health insurance is a highly valued perk that gives employees faster access to specialists and private clinics.

Wellness Benefits

Many companies offer monthly stipends or reimbursements for sports and wellness activities like gym memberships, fitness classes, or mental health services.

Flexible Work Arrangements

Beyond remote work, employers often offer flexible hours or hybrid schedules to support a better work-life balance.

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This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.

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