Did you register a company in Estonia? Now it’s time to hire an employee.
Which data must be entered into the employment register?
- First of all you will need provide us with personal
identification code, including first name, surname and date of brith
- Date when your employment starts
- Kind of employment
Self – employed
Local government – local government
SM without obligation – without obligation to pay social tax
TSD – declaration of income and social tax, payment of mandatory funded pension and unemployment insurance contribution
TM obligation – obligation to pay income tax
VÕS contract – a contract under the law of obligations
- Rate of working time
- Your job title
- Addess, where your work is performed.
Where I can register employment contract?
To register an employee , please log in to the e-MTA portal of the Estonian Tax and Customs Board and choose your role as business client.
Who is entitled to registration under simplified procedure?
Every person, who holds a personal identification code can be registered under the simplified procedure.
The way of registration is as follows:
- Call on 880 0812
- Send an SMS message to 1811
The format of a string should be the same:
”employer’s registry code/ID-code(space)employee’s ID-code(space)date of commencement of the employment“
What is the difference between “unpaid work” and “voluntary work”?
Unpaid work requires registration in the employment register because this kind of work
is normally paid in other circumstances. An employee works under an employment
contract or the law of obligation.
Whereas voluntary work does not require registration, because this kind of work
is associated with typical non-profit activities like helping other people.
What formalities are involved after employment’s registration?
File the “TSD” declaration until 10 day of month following the taxable period.
First of all you have legal obligation to record the rate of working in the employment register on the TSD declaration (the social tax and income tax return). You need to perform this duty until the 10 day of month following the taxable period. What is important
you can not modify the working time rate retroactively.
What is a workplace?
A workplace is a place of work and its surroundings on the premises of an enterprise of a sole proprietor or company, a state or local government agency, a non-profit association or a foundation (hereinafter enterprise) or any other places of work to which an employee has access in the course of his or her employment or where he or she works with the permission or on the order of the employer (§ 4 (1) of the Occupational Health and Safety Act ).
A place of business is the place of the permanent and continuous business or professional activities of a person (§ 9 (2) of the Taxation Act ).
What are the rules of working place address in Estonia?
The workplace is generally the place where the employer performs business activities. The employer can have one or more business places – f.e stores, and branches and an employee
may work in a few places.
In the case when employee performs the work at several locations the address of the workplace shall be location where the employee works for most of the working time
If the employee works f.e 50% in one location and exactly 50% of the times in another location,
the employer has the right to decide which address will be assigned to the employee.
In the case of remote working – the employee’s workplace address will be the same
as the place of business of employers.