Living and Working conditions in Estonia 11 October

Living and Working conditions in Estonia 11 October 2008 Natalja Rabeko EURES adviser Estonian Labour Market Board

Location Republic of Estonia is a country in Northern Europe. Estonia has land borders to the south with Latvia and to the east with Russia. It is separated from Finland in the north by the Gulf of Finland from Sweden in the west by the Baltic Sea.

Facts about Estonia • Type: Parliamentary democracy • Head of state: President - Toomas Hendrik Ilves • Head of Government: Prime minister - Andrus Antsip • Legislature: unicameral Riigikogu • High court: Supreme Court • Administrative regions: 15 counties • Population: 1 342 000 inhabitants (01. 2007) • Capital city: Tallinn (population over 400 000) • Official language: Estonian • Currency: Estonian kroon (1 euro=15, 6 EEK) • Estonia has been a member of the European Union since 1 May 2004

Facts about Estonia 45, 227 km 2 Tallinn 15 counties 1 342 000 inhabitants (01. 2007)

Labour Market Statistics • 656 600 persons are employed • 332 500 of men and 324 100 of women aged 16 -64 are in employment (Q II 2008) • Unemployment rate is 4 % (Q II 2008)

Labour Market Statistics Applicants for a work permit for aliens (1) 01. 2008 - 31. 07. 2008 Citizenship Apliccation Issued Undefinied 4 3 Russia 16 14 Latvia 1 1 414 408 Belorussia 2 2 USA 1 1 Aserbaidžan 1 1 Brasil 3 3 Georgia 7 7 China 5 5 Israel 1 0 India 9 9 Ukraine

Labour Market Statistics Applicants for a work permit for aliens (2) 01. 2008 - 31. 07. 2008 Citizenship Apliccation Issued South Africa 1 1 Malaisia 3 3 Moldova 6 6 Nepal 6 5 Tai 1 1 Trinidad and Tobago 1 1 Turkey 1 1 Usbekistan 1 1 New Zealands 1 1 Canada 1 1 486 473 ALL

Right to work in Estonia Citizens Residence Work (ID) Card permit right Nordic X X EU/EEA* X X Family members Swiss Non-EU, long-term resident Non-EU X X (X) X X X

Working in Estonia • Temporary or Permanent contracts • 4 months probationary employment • Full time, 40 hours per week (8 hours per day). For underage workers are shortened work hours (20 -30 hours per week). Overtime work can be done mutual consent • 28 days vacation per year. The number of vacation days may be higher for certain types of employment (for example teachers 56 days, civil servants 35 days) • Average wage QII 2008: 13306 EEK (850 Euro) • Minimum monthly wage: 4350 EEK (278 Euro) • Minimum hourly wage: 27 EEK (1, 73 Euro)

Finding a job • Public Employment Services: Tööturuamet www. tta. ee and www. amet. ee EURES www. eures. europa. eu • Private labour force companies: Ariko Reserv www. areserv. ee Fontes Personnel Search www. fontes. ee Professional people www. professionalpeople. ee • National newspapers: Eesti Ekspress www. ekspress. ee Postimees www. postimees. ee Eesti Päevaleht www. epl. ee Äripäeva töökuulutused www. vakants. ee • Internet databases: CV Keskus www. cvkeskus. ee CV Online www. cv. ee Hyppelaud www. hyppelaud. ee

Public Employment Services Service through: • Internet www. tta. ee (24 hour service) • By telephone 15501 on weekdays 09. 00 -17. 00 • The Public Employment Office – “Tööturuamet” (over 15 offices)

Applying for Work in Estonia • E-mail is frequently used and accepted. • Applications should be typewritten (format A 4) in Estonian (or in English, depends on the position) • An application consists of: - personal letter (no more than 1 page, often less) - your CV (1 -2 pages) - References (can also be given at the interview) • You may be asked to present evidence of professional qualifications and diplomas later on. • Recognition of foreign diplomas.

Working conditions/ work contract The contents and format of an employment contract can vary, but following conditions has to be in work contract: • Working hours • Salary • Vacation • Responsibilities • Special benefits for both parties • The minimum period of time for giving an advance notice of job termination • Reference to the collective employment contract • In the case that the employee is required to work abroad, the contract must include the duration of the work aboard, the currency in which the salary is to be paid, additional benefits connected with the stay in a foreign country, conditions of going to the foreign and coming back from there.

Shortage of workforce • Medical staff: doctors, nurses • Educational staff: teachers, educators • IT specialists: programmers, … • Building branch: construction engineers • Skilled workers: engine operators, welders, equipment`s compilators, builders, mechanics, locksmiths • Customer service: shop assistants, security guard, cleaning ladies

Taxes in Estonia Mandatory taxes associated with working in Estonia are income tax, social tax and unemployment insurance premium. • In 2008, the rate of income tax in Estonia is 21%, income tax-free minimum is 2 250 krons per month (144, 2 EUR). • Social tax rate is 33% (paid by employer) of taxable income and it guarantees medical and pension insurance to people. • Unemployment insurance tax rate for employees is 0, 6% and the employers tax rate is 0, 3%. It is a compulsory payment. • Additional information on Estonian tax system can be found at the Estonian Tax and Customs Board and on their website www. emta. ee

Social security system • Estonian social security system is very broad and it is possible to apply different kinds of welfare payments like illness and pregnancy benefits, various pensions, benefits in case of work related accidents illnesses, funeral grants, subsistence benefits, unemployment insurance and various family benefits. • In Estonia, the social insurance system is co-ordinated by Ministry of Social Affairs and Social Insurance Board. Their websites are: www. sm. ee, www. ensib. ee. • There are different types of pensions and benefits, main of them: Child allowance is a monthly allowance paid from the birth of child until he or she attains 18 years of age. The rate of child allowance is 300 EEK in 2008. • The right for the old-age pension has a person, who has at least 15 years of pensionable service or accumulated period, having been acquired in Estonia and who is according to his/her year of birth at the forthcoming age.

Unemployment benefits in Estonia The risk of unemployment is covered by two system of cash benefits: 1. Contributory earnings - unemployment insurance benefit. 2. Non contributory flat rate - unemployment allowance. Both unemployment benefits can be claimed in the local employment offices.

1. Unemployment insurance benefit In order to receive unemployment insurance benefit three main requirements have to be met: • Registration as unemployed. Only those unemployed persons who are registered as unemployed in a regional office of the Labour Market Board are eligible to apply for unemployment insurance benefit. • Required insurance periods. In order to receive an unemployment insurance benefit, a person must have worked and paid unemployment insurance premiums for at least 12 months during the 36 months preceding the registration as unemployed. • Involuntary unemployment. Only those unemployed persons who lost their job involuntary have the right to receive unemployment insurance benefit. Foreign citizens wishing to seek employment in Estonia can transfer their unemployment insurance benefit to Estonia. He or she must turn to local employment office with E - 303.

2. Unemployment allowance • … is paid to the unemployed who do not have right to get unemployment insurance benefit. • The unemployment allowance is guaranteed as a rule up to 270 day's to person who: - is registered as unemployed in the local employment offices and - is looking for work actively. - has been employed or engaged in an activity equal to work at least 180 day's during 12 months prior to registration as an unemployed. - his or her income is less than rate of unemployment allowance - 32. 90 EEK per day ~1019 EEK per month (~ 65 euro). • More information can be found from Estonian Unemployment Insurance Fund and from Estonian labour offices around Estonia and from their web sides: www. tootukassa. ee and www. tta. ee.

How to find a residence? • Real estate agency's • Internet real estate portals: - City 24 www. city 24. ee - Kinnisvaraweb www. kv. ee • Newspapers about real estate: - Soov www. soov. ee - Kuldne Börs www. kuldnebors. ee Rent prices of accommodation (2 rooms flat) begin from 3000 EEK (192 Euro) + all utility bills

Educational system Higher education Age 19 Secondary school Age 16 -19, 3 years Basic school (Compulsory) Age 7 - 16, 9 years Pre-school Age 1 - 7 (volontary) Vocational education Age 16 - www. hm. ee

Food costs Milk 1 l Potatoes 1 kg Onion 1 kg Pork 1 kg Beef 1 kg Mutton 1 kg Table chicken 1 kg Eggs 1 pc Trout 1 kg Bread 1 kg White bread 1 kg Cigarettes Beer Petroleum 10, 13 EEK – 0, 64 Euro 8, 37 EEK – 0, 53 Euro 7, 3 EEK – 0, 46 Euro 77, 91 EEK -4, 98 Euro 97, 69 EEK – 6, 24 Euro 115 EEK – 7, 3 Euro 50, 58 EEK – 3, 24 Euro 2, 11 EEK – 0, 12 Euro 95, 58 EEK – 6, 11 Euro 23, 79 EEK – 1, 52 Euro 24, 56 EEK – 1, 57 Euro 25 EEK – 1, 6 Euro 10 EEK – 0, 7 Euro 16, 25 EEK – 1, 03 Euro

Useful links Tax and Customs Board: www. emta. ee Estonian ENIC/NARIC Centre: www. socrates. ee/et/enicnaric. html Labour Market Board: www. tta. ee Social Insurance Board: www. ensib. ee Health Insurance Fund: www. haigekassa. ee Citizenship and Migration Board: www. mig. ee Estonian Unemployment Insurance Fund: www. tootukassa. ee Goverment: www. riik. ee Agriculture: www. agri. ee Enviroment: www. envir. ee Culture: www. kul. ee National Defence: www. mod. gov. ee Education and Science: www. hm. ee Finance: www. fin. ee Foreign Affairs: www. vm. ee Social Affairs: www. sm. ee Justice: www. just. ee Economic affairs and communications: www. mkm. ee Bank of Estonia: www. bankofestonia. info

Thank you! www. eures. ee