Living and working in Estonia

Living and working in Estonia
Tallinn 2011
Contents
Welcome to Estonia
1
Living in Estonia
4
Working6
Social services and benefits
Useful contacts
9
12
2011
This brochure is published by the Estonian EURES services, with the assistance
of the European Commission. It contains detailed information for people who
are planning to come to Estonia in order to work here.
The information in this brochure applies specifically to citizens of EU Member
States, of the Member States of the European Economic Area (Norway, Iceland
and Liechtenstein) and of the Swiss Confederation, their family members and
immediate dependents. Different rules apply for those who come to Estonia
from other countries.
More detailed information concerning the topics described in the brochure is
available on - the European job mobility portal http://eures.europa.eu and on
EURES Estonia website: www.eures.ee
ESTONIA
Welcome to Estonia
Situated in the North-East of Europe,
Estonia lies at the shores of the Baltic
sea. The country is mainly flat with only a
few hills in the south and is dotted with
hundreds of small lakes. About half of the
land is covered in forest. Most of the 1.34
million inhabitants live in the cities, which
leaves a lot of open space to roam around
and to explore nature.
The capital of Estonia is Tallinn which has
a rich history as an Hanseatic city. The
medieval city centre remains beautifully
preserved and is listed as a Unesco World
Heritage Site. Tallinn international airport
is located just outside the city and offers
regular connections to other European
cities.
The main resources in Estonia are its
people and its land. Oil shale mining in
the east of the country provides for most
of the country’s electricity; other mineral
resources are limestone, phosphate rock,
clay, calcareous stone, sand, dolomite and
sea mud which is used in the medical and
cosmetic industry.
Including the 1.520 islands, the country
covers 45.227 square kilometres. To the
east it borders Russia; to the south, Latvia.
Helsinki, the capital of Finland, is only 80
kilometres away across the Baltic Sea and
can be easily reached by ferry.
1
Welcome to Estonia
Climate
Estonia is on the same latitude as
Stockholm, the northern tip of Scotland
and – across the ocean – the southern
tip of Alaska. The amount of daylight
differs greatly during the year. On average
summer days last 18 hours; winter days a
mere six. The longest day of the year is on
June 23rd, when the sun almost doesn’t
set, and the night is replaced by twilight.
The midsummer night is celebrated all
over Estonia with bonfires and festivities.
Estonia is however also a decidedly
modern and well-connected place.
Internet connectivity is found even in
the smallest of places and the majority
of the population carries an electronic
identity card to be used to access Internet
banking and several government services
offered online. Wireless Internet is also
widely available in most cases free or at a
nominal cost.
Feeling closely connected with their
Finnish neighbours, Estonia is a Nordic
rather than an Eastern-European
country and has more connections with
Scandinavia than with its fellow Baltic
countries, Latvia and Lithuania.
Despite the lack of sun in winter and the
abundance of it in summer, the climate is
more moderate than one would expect
it to be. Due to the warmer air flowing
in from the Atlantic Ocean summers are
somewhat cooler and winters significantly
warmer than in other countries so far
up north. The average temperature in
summer is around 16 degrees Celsius and
around -7 in winter.
Estonian people are rather reserved and
less talkative by nature which often leaves
you to take the first step in approaching
them. Knowing a few words in Estonian
goes a long way in establishing contacts
and once introduced, you will find people
to be helpful.
Culture
Estonia is a mystical place with a lot of
tradition and folklore. Every community,
big or small, has its own stories inspired by
the surrounding landscape, the particular
history of the place, and the big boulders
that seem to grow out of the earth but
which are really leftovers from the ice
age. Folk singing and handicraft play an
important role in community life in the
countryside and different regions have
different traditions and costumes to fit.
Language
The language of Estonia is officially
Estonian. While closely related to Finnish it
is quite particular and different from other
European languages. Estonians use the
Latin alphabet with some specific letters
added.
Even though companies and government
agencies often also communicate in
Russian and in English, Estonian is the
only official language. Almost all jobs in
Estonia require you to understand and
speak Estonian.
2
Welcome to Estonia
Currency
Since 1 January 2011 the currency is EURO
(EUR).
Because there is almost no resemblance
to other European languages, taking
language courses is very much
recommended. These courses are
offered by private language schools and
universities.
Getting around
Public transport is mainly organised
through bus networks with good
connections within cities and over long
distances. The rail network only serves
some cities and municipalities and the
schedule is more limited than that offered
by bus companies. Within cities public
transport is extensive and the best way to
get around.
Kas siis selle maa keel
Laulutuules ei või
Taevani tõustes üles
Igavikku omale otsida?
Cannot the language of this land
In the wind of incantation
Rising up to the heavens
Seek for eternity?
The cost of car ownership is relatively low in
Estonia but cars need more maintenance
because of winter driving conditions.
Kristjan Jaak Peterson
Economy
Estonia has a very open economy in which
it is easy to do business. The economy
boomed between 2000 and 2007, with
double-digit growth, but also high
inflation and matching increases in wages.
The economy contracted following the
global economic and financial crisis but
remains in reasonably good shape thanks
to a low public debt, a limited budget
deficit and the existence of considerable
financial reserves.
Most people are employed in the
manufacturing, wholesale, trade and
service sector. The most vibrant sectors
are the financial and IT sectors.
3
Living in Estonia
Residence permits are usually issued for a
period of five years and are administered
by the Estonian Police and Border Guard
Board. In order to obtain one, you will
need to register your place of residence
with the authorities of the town or city
you are settling in. When you apply for a
residence permit, you will also obtain an
Estonian identity card which you can then
use to access the many online services
the government offers.
As a citizen of another EU Member State,
of a Member State of the European
Economic Area, or of the Swiss
Confederation, you have the right to stay
in Estonia. This right is based on European
regulations and there are some conditions
and formalities to fulfil.
You can enter the country with a valid
travel document or an ID card. No other
documents are required. However, if you
plan to stay in Estonia for longer than three
months (for example if you are looking for
a job here, take up employment or start
a business), you will need to apply for a
residence permit.
It is important to know that, as a citizen
of these countries, you can start working
while you apply for the residence permit.
The right of residence is automatic and
the permit is only a document to prove
your right.
All information concerning entry
conditions and residence permits is
available from the Police and Border
Guard Board: www.politsei.ee
Information number: +372 6123000
Housing
The cost of housing varies greatly by
location and size of the place. Houses
and apartments – both for rent and for
sale – are typically advertised through
real estate companies and through
informal networks. The best way to
find out what is on offer is to visit real
estate websites such as www.kv.ee or
www.city24.ee, which gather offers from
different brokers. Offers are also advertised
in local newspapers.
4
When considering the cost of housing,
keep in mind that winters in Estonia are
long and can get quite cold which has an
impact on electricity and heating costs.
Before you buy or rent, ask the owner to
see some utility bills of the past months
(including some winter months). These
will give you a better idea of what to plan
for.
Income tax is set at 21% of gross wages.
This is a flat rate, not dependent on
income and is the same for everyone. A
part of the income (144 EUR per month
or 1 728 EUR per year in 2011) is tax free.
Aside from income tax, a social tax of 33%
applies to wages paid in Estonia. This tax
is used to finance the pension and health
care systems. Contributions must also
be paid to the unemployment insurance
scheme. On 2011 it is 4,2 % (2,8% paid by
employer and 1,4% paid by employee.
The social taxes are paid by the employer.
All in all, taxes amount to about 30% of
gross wages.
Day-to-day prices
Consumer prices are slightly different
according to where you live and where
you shop. In general services and eating
out are more expensive in larger cities and
other places regulary visited by tourists.
But food is cheaper in cities where
one can visit chain supermarkets.The
following are sample prices of day-to-day
items, purchased in January 2011:
milk 1l
0,65 EUR
potatoes 1kg
0,39 EUR
pork 1kg
4,76 EUR
table chicken 1kg
2,61 EUR
butter 1kg
6,99 EUR
bread 1kg
1,59 EUR
eggs (1 piece)
0,12 EUR
beer 1l
1,75 EUR
cheese 1kg
7,24 EUR
Living in Estonia
Both income tax and social contributions
are deducted from the gross wages by the
employer and centrally collected by the
Estonian Tax and Customs Board.
At the latest 31 of March of each year,
one must make a personal income tax
declaration for the previous year. This can
be done online which makes the process
easy and fast. In most cases, deductions
made by the employer are sufficient to
cover the taxes due.
Estonia has concluded bilateral tax
agreements with different countries to
make sure taxes are only paid once on
the same income. If you already pay taxes
in another country and if you reside in
Estonia for less than six months, special
tax rules apply. For more information
about these arrangements, please visit
the website of Estonian Tax and Customs
Board at www.emta.ee.
Taxes and social contributions
The overall tax ratio in Estonia is 36%
(2009, compared to an EU average of
around 41%).
The standard VAT rate in Estonia is 20%,
reduced rate 9%.
5
Working
Get help to find a job
You can easily start looking for a job
in Estonia even before you leave your
country of residence, through the EURES
network.
Citizens of EU Member States, Member
States of the European Economic Area
and of the Swiss Confederation can work
in Estonia without a work permit.
Citizens of other countries need a work
permit that is usually arranged by the
employer.
EURES, which stands for European
Employment Services, is a cooperation
network of advisers of public
employment services in Europe. Through
this network, information is exchanged
concerning job vacancies in different
countries and practical issues related
to working abroad. In other words, the
EURES advisers in your own country
will be able to tell you what vacancies
are available in Estonia even before you
decide to leave.
You should be at least 18 years of age to
be legally able conclude an employment
contract.
If you have already arrived at Estonia
and are looking for a job on the spot,
you can get help from the Estonian
public employment services, organised
by
the
Estonian
Unemployment
Insurance Fund (Eesti Töötukassa),
www.tootukassa.ee.
Estonian Unemployment Insurance Fund
also provides EURES services in Estonia.
More information on the procedure,
requirements and consequences can
be obtained from the EURES advisers in
Estonia.
To find out more about EURES,
and to locate an EURES advisor
in your country of residence or in
Estonia, please visit the website
http://eures.europa.eu.
6
Working
While the Estonian public employment
services keep track of most vacancies,
some employers prefer to search for staff
through advertisements in newspapers
or on websites or via private recruitment
agencies. Vacancies mediated by public
employment services are available at
http://iseteenindus.tootukassa.ee
is to use no more than two pages and to
clearly structure the information so that it
can be viewed at a glance.
When you send in your CV, you should
add a cover letter or e-mail in which you
can highlight some of your skills that are
relevant to the job.
If a recruiter thinks you might be a good
candidate for the position offered, you
may be invited to an interview. An
interview focuses less on your previous
experience and qualifications (outlined
in your CV) and more on your reasons for
applying for the position. All employers
are looking for professional, motivated
candidates who show an interest in their
company and have realistic expectations
about the job at hand.
Some
specialised
websites
where vacancies are posted are
www.cv.ee,
www.cvkeskus.ee
and
www.ekspressjob.ee.
Job mediation in Estonia is free of charge
for all job seekers. While private mediators
can offer additional services, you
should never have to pay for accessing
information about vacancies.
Introducing... yourself
Job application procedures differ from
vacancy to vacancy but there are some
common features nearly always present.
When preparing for an interview, always
try to put yourself in the position of the
employer and to think of questions you
would ask. Doing a bit of research on the
company you would like to work for is
always a good idea.
Employers will always ask you to submit
a CV (Curriculum Vitae), which is a
structured overview of who you are
and what you can do. In your CV you
are expected to provide your personal
data, information about your previous
education, work experience, language
skills and other interests.
Make sure you provide honest, accurate
and clear information in all stages of a
selection procedure. Emphasising your
strong points is ok but misrepresenting or
omitting facts is not. Keep your answers
relevant to the position you apply for.
As a recruiter may only have a very limited
time to examine your CV and will look for
data that are important to the position
offered, you should keep the information
short and relevant to the vacancy you
are applying for. A good rule of thumb
Qualifications and diplomas
Your employer may want to make sure
that the diplomas or certificates you have
obtained in another country are genuine.
Therefore you may need to provide such
7
Working
Good to know
The standard working time in Estonia is 8
hours per day in a five-day work week.
documentation. To get your diplomas or
certificates recognised in Estonia, you can
turn to the Estonian ENIC/NARIC centre
www.archimedes.ee/enic/index.php.
The average monthly gross wage for a
full-time job in the last quarter of 2010
was 814 EUR.
Employment contracts
If you have found a job, the agreement
needs to be formalised through an
employment contract. This contract
specifies your rights and obligations and
those of your employer, including your
working time and wages.
The minimum monthly gross wage in
Estonia, set for 2011 for a full-time job, is
278, 02 EUR.
Your employer deducts income tax and
unemployment contribution from your
gross wage. Make sure you understand
what and how much is deducted
before you agree on your wages.
For example: uniform, keys
What must and can be stipulated in an
employment contract is determined by
the Employment Contracts Act. If you
have doubts or questions concerning
your Estonian employment contract, you
can ask information from the Estonian
Labour Inspectorate www.ti.ee.
The highest wages are found in the
financial sector and the lowest in the
fishing industry and in hotels and
restaurants.
In general, you are entitled to 28 days’ paid
holiday per year.
8
Social services and benefits
For citizens of the Member States of the
European Union, the European Economic
Area and the Swiss Confederation,
European Regulations apply. These
Regulations contain arrangements that
guarantee social security coverage for
those who move between different
countries.
medication if necessary. A visit to the
family doctor you are registered with is
free of charge.
If you need specialist treatment or inpatient care, your family doctor will refer
you.
Detailed information about the European
rules
concerning
social
security,
and how these rules are applied in
different countries, is available from the
website of the European Commission:
http://ec.europa.eu/social/
Keep in mind that the European
Regulations only determine how services
and benefits are provided for, but not
which services and benefits are actually
offered in the different countries, or to
what extent. As a result, the provisions
in Estonia may be different from those in
the country you are coming from.
Healthcare
When you settle in Estonia you
should register with a family doctor
of your choice. A list of addresses is
available from the Estonian Health
Insurance Fund (Haigekassa – see
www.haigekassa.ee/eng/service). You
can freely choose which family doctor to
register with but it is a good idea to find a
doctor close to where you live.
Your family doctor is the first person you
should turn to in case of illness. He or she
will give you advice and will prescribe
9
Social services and benefits
When you work and pay contributions
in Estonia, you are insured under the
Estonian health care system. To provide
proof that you are covered, you simply
need the ID code provided to you or your
Estonian ID card.
The municipality where you live might
have additional compensations available.
Information about these benefits can be
obtained from the local authorities of your
place of residence in Estonia.
Unemployment benefits
If you come to Estonia to look for work
and are entitled to unemployment
benefits in the country you have worked
earlier you may be able to have your
benefit transferred and paid out in Estonia
for a period of three months. In order to
arrange this, you first must contact the
local employment office in the country
where you worked and discuss your
intention to go look for work abroad. The
authorities there will issue you with the
necessary forms and instructions.
If you are insured for health care in
another country of the European Union,
European Economic Area, or in Swiss
Confederation, you should ask the
authorities of that country to provide you
with a European Health Insurance Card.
This card gives you right to receive health
care in Estonia as if you were insured here.
Additional information is available on the
website of the Health Insurance Fund
www.haigekassa.ee.
If you can’t reach your family doctor or
want immediate advice, you can make
use of the medical help line, where
doctors answer your call 24 hours a day.
To reach this service, dial 1220.
When you arrive in Estonia, you must
then register as soon as possible with the
Estonian Unemployment Insurance Fund
(Eesti Töötukassa www.tootukassa.ee)
in order to make sure you do not lose
benefits. Please note that the benefits
will be paid to you by the country where
you received an unemployment benefit
earlier. Töötukassa job mediation services
will then assist you in your job search and
will also explain to you the procedures
that apply and the conditions you will
need to adhere to. These procedures and
conditions are designed to ensure that you
are actively looking for employment and
that you are ready to start working when
a job is offered.
If you need emergency services, call 112.
Family allowances
The Estonian social security system
provides for several allowances related to
birth, family and childcare. These benefits
are not granted automatically but need to
be applied for.
The administration of family allowances
is organised by the Estonian Social
Insurance Board (ENSIB – see
www.ensib.ee/index_eng.html). ENSIB
also has an information line available,
which you can reach by dialling 16106 (or,
from abroad, +372 6121360).
10
Social services and benefits
If you become unemployed in Estonia,
previous employment in other countries
may be taken into account when your
right to a benefit in Estonia is determined.
To that end, you will need to obtain
documents that prove your record from
the countries you have worked in before.
Your employment record in another
country and the contributions you have
paid there may be taken into account in
the country where you eventually apply
for a pension, when these countries
have made such arrangements. For
the countries of the EU, the European
Economic Area and Switzerland, these
arrangements are provided through the
European Regulations.
For more information concerning
unemployment benefits, job meditation
rules and conditions and your rights
consult the information provided on
www.tootukassa.ee,
or
call
the
unemployment insurance help line on
the number 15501 (or +372 669 6513
when calling from outside Estonia).
To call from SKYPE to call centre dial
tootukassa.
To discuss your individual outlook as far as
pensions are concerned, you can contact
the authorities of any of the countries
you were previously employed in, or, in
Estonia, consult with the Estonian Social
Insurance Board www.ensib.ee
A more detailed overview of the social
security system in Estonia is available
on the website of the Ministry of Social
Affairs:
Pensions
The right to and the amount of a state
pension in Estonia depends on the
payment and amount of contributions.
This part of the pension benefit is called
the “first pillar”. To complement the first
pillar pension, a second pillar system is
compulsory for people born in 1983 or
later and voluntary for others. There is
the possibility to enter private pension
schemes for which favourable tax rules
apply (third pillar).
http://www.sm.ee/eng/activity/workingand-managing/social-insurance/socialprotection-in-estonia.html
Contributions to both the first and the
second pillar of the pension system are
deducted from your gross wages and are
arranged by your employer. Contributing
to the third pillar is voluntary and
something which you should arrange
yourself.
11
Useful contacts
When making enquiries, please take into account that the official language of Estonia
is Estonian. Most institutions will find it easier to answer your requests in English more
precisely when received by (electronic) mail.
Estonian Unemployment Insurance
Fund
Job offers, labour market services,
Unemployment insurance benefits
www.tootukassa.ee
15501 (calling from abroad +372 669
6513).
Skype: tootukassa
Facebook: Eesti Tootukassa
www.ensib.ee
16106 (calling from abroad
+372 612 1360)
[email protected]
Health Insurance Fund
(Medical insurance)
www.haigekassa.ee
13363 (calling from abroad
+372 669 6630)
[email protected]
EURES in Estonia
www.eures.ee
[email protected]
Estonian Ministry of Foreign Affairs
(Consular and travel information)
www.vm.ee
+372 637 7000
[email protected]
EURES
The European Job Mobility Portal,
Job offers in Europe
eures.europa.eu
Police and Border Guard Board
(Entry conditions and residence permits)
www.politsei.ee
+372 612 3000
[email protected]
Labour Inspectorate
(Enforcement of the employment laws)
www.ti.ee
+372 626 9400, legal helpline +372
640 6000 (Mo-Fr 10-15) [email protected]
Estonian Tax and Customs Board
(Taxation information, bilateral
tax agreements)
www.emta.ee
+372 676 2700
[email protected]
Statistics Estonia
www.stat.ee/en
+372 625 9300
[email protected]
Population Register
(Residence registration)
www.siseministeerium.ee/35796/
+372 612 5008
[email protected]
Social Insurance Board
(Social tax, pension, family
benefits, parental benefits)
12
The State portal of Estonia
www.eesti.ee/eng/
(Information and e-solutions for
citizen, entrepreneur and official)
Estonian ENIC/NARIC Centre
(Recognition of professional qualification
and education documents in Estonia)
www.archimedes.ee/enic/index.php
+372 696 2416
[email protected]
Europass
(CV examples, Language Passport,
Europass Mobility, Certificate supplement
and Diploma supplement)
http://www.europass.cedefop.
europa.eu/europass/
EUROPE Direct
(General information about EU matters)
http://ec.europa.eu/europedirect/
Euroguidance
(Careers Guidance network in Europe)
www.euroguidance.net/
PLOTEUS
(Learning Opportunities in Europe)
http://ec.europa.eu/ploteus/
Databases of vacancies
www.tootukassa.ee
www.cv.ee
www.cvkeskus.ee
www.ekspressjob.ee
www.cvok.ee
www.hyppelaud.ee
Estonian Investment and Trade
Agency
www.investinestonia.com
Facts about Estonia, travel information
www.visitestonia.com
www.tallinn.ee/eng
www.regio.ee
www.balticsww.com
www.tootukassa.ee
www.eures.ee
eures.europa.eu
With support from the
European Union