In addition to annual holiday, there are various situations where employees have the right to different types of holiday for which the employer is required to pay employees holiday pay as provided by the state. In that case, within three months after the holiday of an employee the employer can file with the Social Insurance Board an application for the compensation for the holiday pay from the state budget.
The holiday pay for the following types of holiday is subject to compensation:
- Annual holiday of an employee with partial or no work ability or a minor employee, according to:
- § 56 of the Employment Contracts Act (‘Annual holiday of minor’) or
- § 57 of the Employment Contracts Act (‘Annual holiday of employee with partial or no work ability’);
- Child leave, according to § 63 (1) of the Employment Contracts Act;
- Child leave for parents of a disabled child, according to § 63 (2) of the Employment Contracts Act;
- Paid carer’s leave according to § 651 of the Employment Contracts Act (as of 01.07.2018);
- Compensation for average wage retained for breaks for nursing a child, according to § 10 of the Occupational Health and Safety Act.
Please note that for being compensated for holiday pay you must file an application no later than within three months as of the month the relevant employee was on holiday. After that the Social Insurance Board cannot process the application.
NB! The paternity leave procedure has been changed as of 1 July 2020. The 10-day paternity leave was replaced by a 30-day paternity leave, for which the father shall receive the father’s additional parental benefit. All fathers shall receive the benefit for 30 calendar days – including fathers who are not working under an employment contract (e.g. self-employed entrepreneurs, management board members, etc.) or who are unemployed.
An application for the compensation for holiday pay and average wage must be filed no later than within three months as of the month the relevant employee was on holiday. The application may be filed by the employer or a person authorised by the employer. We are entitled to verify the correctness of the data submitted by the employer and the documents on the basis of which the application was prepared.
The easiest way to file an application is through the state portal www.eesti.ee. The application form is available here:
Labour Environment --> Vacation pay and average wages compensation
N.B. Compensation for paid carer’s leave applicable as of 1 July 2018 cannot be temporarily applied for through the eesti.ee portal. Please send the application electronically digitally signed or on paper. We apologise for the inconvenience.
If filing an application in the E-environment is not possible for any reason, the application can be submitted digitally signed to the e-mail address [email protected] or by mail to the address Tallinna 14, 79513, Rapla. The application can also be filed at the Social Insurance Board’s customer service points.
Application form: List of data for applying for compensation for holiday pay and average wage from the state budget *.xls (52.5 KB, XLS) *.pdf (482.8 KB, PDF)
If you send your employee to work in another country on a temporary basis (up to 2 years), you are required to pay for the employee during their secondment the social security contributions provided by Estonian laws and the employee will continue to have their country’s health, pension and unemployment insurance.
Applying for Form A1 as an economic operator
Form A1 must be applied for each employee being seconded to determine the country where the employee is insured. The employee seconded can use this Form to prove to the authorities in their host country that they are already subject to the social security laws of another country (Estonia).
- To apply for the Form use the relevant service at eesti.ee: Applying for A1 (E101) certificate for employee of enterprise or of sole proprietor
N.B. The employer applies for the Form on behalf of the employee but the Form is always personal and issued in the employee’s name.
- If you want to apply for Form A1 for yourself as a self-employed person, use the service “Applying for A1 (E101) certificate as sole proprietor”.
- You can view applications and issued Forms through the eesti.ee service “Applications for A1 (E101) certificate filed by and certificates of entrepreneur”.
N.B. As of 18 March 2019 Forms A1 are effective without being signed or sealed and the Estonian Social Insurance Board does not issue paper forms by mail any longer. Issued Forms A1 can be viewed and printed through the service “Applications for A1 (E101) certificate filed by and certificates of entrepreneur”.
In accordance with Council Regulation No 1 determining the languages to be used by the European Economic Community (OJ 17, 6.10.1958, p. 385) drawing up documents to be issued and sent to a person, in the official language of the issuing country.
If you are unable to file an application through the state portal, you can use paper application forms to apply for A1 (E101). A filled-in application must be signed digitally and sent to the e-mail address [email protected]. If you are unable to give your signature digitally, you can mail your application signed by hand to the Social Insurance Board at the address Endla 8, Tallinn 15092.
If you cannot print Form A1, contact the Social Insurance Board via e-mail address [email protected] or go to the nearest customer service point.
Time limit for processing applications for Form A1
If you file an application electronically in the state portal, Form A1 will generally be available within the following business day.
Applications filed on paper and incomplete applications are reviewed no later than within 30 days as of the registration of the relevant application.
Cancellation of Form A1
As an employer you are required to inform the Social Insurance Board of all changes in the circumstances while Form A1 is in effect. Such changes include termination of the employee’s employment contract, suspension of the employee’s activities in a foreign state, or the employee’s new country of residence.
You can cancel existing Forms A1 through the service “Revocation of A1 (E101) certificate filed by entrepreneur”.
Filed applications can be cancelled through the service “Revocation of application for A1 (E101) certificate filed by entrepreneur”.
On the basis of § 134 of the Employment Contracts Act, as of 1 January 2011 it is possible to deposit employment record books with the Social Insurance Board. An employment record book may be submitted to the Social Insurance Board by the holder of the employment record book or their employer.
According to the Employment Contracts Act effective as of the summer of 2009, employers are no longer required to maintain employment record books. However, information entered in employment record books earlier is necessary to ascertain years of pensionable service before 1999 as well as in exceptional cases periods worked afterwards. Information in employment record books may be needed for granting pension many years later. Therefore, employment record books may not get lost or destroyed.
An employment record book in the possession of the employer shall remain there until the expiry of the employment contract or end of the service relationship. When an employment or service relationship ends, the relevant employment record book shall generally be given to the employee or public servant. If the employee or public servant does not retrieve their employment record book after the passing of one year as of the end of the employment or service relationship, the employer may deposit the employment record book with the Social Insurance Board.
When handing employment record books over to the Social Insurance Board the employer shall attach a list setting out the number of employment record books and the names and personal identification codes of persons whose employment record books are deposited.
Where necessary, the Social Insurance Board has the right to request additional information for identifying the person in question.
Information in an employment record book which has a legal meaning upon the calculation of the pension qualifying period shall be entered in the State Pension Insurance Register. After the grant of old-age pension the employment record book is returned to the holder thereof.
Employment record books may be submitted to the regional customer service points of the Social Insurance Board. If you have any questions, please write to the e-mail address [email protected] or call the Social Insurance Board’s helpline 612 1360.