Living and working in Estonia

Tallinn 2011

Contents

Welcome to Estonia 1

Living in Estonia 4

Working 6

Social services and benefits 9

Useful contacts 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

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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.

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.

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.

ESTONIA

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ClimateEstonia 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.

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.

CultureEstonia 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.

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.

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.

LanguageThe 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.

Welcome to Estonia

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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.

EconomyEstonia 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.

CurrencySince 1 January 2011 the currency is EURO (EUR).

Getting aroundPublic 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.

The cost of car ownership is relatively low in Estonia but cars need more maintenance because of winter driving conditions.

Kas siis selle maa keelLaulutuules ei võiTaevani tõustes ülesIgavikku omale otsida?

Cannot the language of this landIn the wind of incantationRising up to the heavensSeek for eternity?

Kristjan Jaak Peterson

Welcome to Estonia

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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.

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

HousingThe 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.

Living in Estonia

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.

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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.

Day-to-day pricesConsumer 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

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%.

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.

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.

Living in Estonia

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Working

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.

You should be at least 18 years of age to be legally able conclude an employment contract.

Get help to find a jobYou can easily start looking for a job in Estonia even before you leave your country of residence, through the EURES network.

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.

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.

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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

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... yourselfJob application procedures differ from vacancy to vacancy but there are some common features nearly always present.

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.

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

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.

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.

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.

Qualifications and diplomasYour 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

Working

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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.

Employment contractsIf 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.

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.

Good to knowThe standard working time in Estonia is 8 hours per day in a five-day work week.

The average monthly gross wage for a full-time job in the last quarter of 2010 was 814 EUR.

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

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.

Working

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Social services and benefits

medication if necessary. A visit to the family doctor you are registered with is free of charge.

If you need specialist treatment or in-patient care, your family doctor will refer you.

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.

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.

HealthcareWhen 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

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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.

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.

If you need emergency services, call 112.

Family allowancesThe 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).

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 benefitsIf 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.

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.

Social services and benefits

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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.

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.

PensionsThe 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).

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.

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.

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:

http://www.sm.ee/eng/activity/working-and-managing/social-insurance/social-protection-in-estonia.html

Social services and benefits

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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.

www.ensib.ee16106 (calling from abroad +372 612 1360)ska@ensib.ee

Health Insurance Fund(Medical insurance)www.haigekassa.ee13363 (calling from abroad +372 669 6630)info@haigekassa.ee

Estonian Ministry of Foreign Affairs(Consular and travel information)www.vm.ee+372 637 7000vminfo@vm.ee

Police and Border Guard Board(Entry conditions and residence permits)www.politsei.ee+372 612 3000ppa@politsei.ee

Estonian Tax and Customs Board(Taxation information, bilateral tax agreements)www.emta.ee+372 676 2700emta@emta.eeStatistics Estoniawww.stat.ee/en+372 625 9300stat@stat.ee

Estonian Unemployment Insurance Fund Job offers, labour market services, Unemployment insurance benefits www.tootukassa.ee15501 (calling from abroad +372 669 6513). Skype: tootukassa Facebook: Eesti Tootukassa

EURES in Estoniawww.eures.eeeures@tootukassa.ee

EURESThe European Job Mobility Portal, Job offers in Europe eures.europa.eu

Labour Inspectorate(Enforcement of the employment laws)www.ti.ee+372 626 9400, legal helpline +372 640 6000 (Mo-Fr 10-15) ti@ti.ee

Population Register(Residence registration)www.siseministeerium.ee/35796/+372 612 5008info@siseministeerium.ee

Social Insurance Board(Social tax, pension, family benefits, parental benefits)

The State portal of Estoniawww.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 2416Enic-naric@archimedes.ee

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 vacancieswww.tootukassa.eewww.cv.eewww.cvkeskus.eewww.ekspressjob.eewww.cvok.eewww.hyppelaud.ee

Estonian Investment and Trade Agency www.investinestonia.com

Facts about Estonia, travel informationwww.visitestonia.comwww.tallinn.ee/engwww.regio.eewww.balticsww.com

With support from the European Union

www.tootukassa.ee www.eures.ee

eures.europa.eu