Public Holidays and Holiday Pay in Estonia

Whether you are opening a new business or branching out into the Estonian market with your existing company, staying up to date on employment laws will help your business run smoothly. This blog post explains all the basics you should know about public holidays in Estonia as an employer.

What are Employees Legally Entitled to During Public Holidays in Estonia?

An employee’s entitlements on Estonian public holidays vary depending on the nature of their work and the position they hold. In roles that reasonably allow for time off during public holidays, employees are legally entitled to the days off work. In positions that require work to continue on public holidays, employees are entitled to additional compensation for the inconvenience.

This compensation can be in the form of:

1. Double wages. This is required by law and is the usual form of compensation for working on a public holiday.
2. Extra days off. An employee can be compensated with additional time off, but only if they agree to it. In this case, they would receive their usual wage for the hours worked on the public holiday, and their usual wage for the extra day off, too.

Are There any Scenarios in Which Employees do not Have These Entitlements?

Yes – some employees in Estonia are designated as having ‘independent decision-making capacity’. This gives them the freedom to organise their own working hours. Because these employees have complete autonomy over when they work, the standard procedures for compensating work on Estonian public holidays do not apply.

How Does Overtime Work on Public Holidays in Estonia?

If an employee works overtime on an Estonian public holiday, they must be paid overtime rate (1.5x their usual wage), plus double wages for working on the public holiday. This means they should be paid 2.5x their usual wage (not 3.5x, which would mean the basic wage is counted twice).

When are Estonia’s Public Holidays?

• 1^st January: New Year’s Day.
• 24^th February: Independence Day and anniversary of the Republic of Estonia.
• Two days before Easter Sunday (18^th April in 2025): Good Friday.
• First full moon Sunday after vernal equinox (20^th April in 2025): Easter Sunday.
• 1^st May: May Day.
• Seventh Sunday after Easter Sunday (8^th June in 2025): Pentecost.
• 23^rd June: Victory Day.
• 24^th June: Midsummer Day.
• 20^th August: Day of Restoration of Independence.
• 24^th December: Christmas Eve.
• 25^th December: Christmas Day.
• 26^th December: Boxing Day.

Do any Specific Public Holidays Have Unique Regulations?

There are four public holidays in Estonia on which employers must shorten the immediately preceding working day by three hours. This rule is only applicable when the day before the holiday is a working day. For example, if a public holiday falls on a Sunday and the business does not operate on a Saturday, the employer is not obliged to shorten the Friday.

The four public holidays this rule applies to are:

• New Year’s Day.
• Independence Day and anniversary of the Republic of Estonia.
• Victory Day.
• Christmas Eve.

It is important to note that shortening the preceding working day by three hours is fixed, regardless of how many hours an employee usually works. This means that if an employee works part-time for three hours each day, they are not required to work at all the day before these public holidays.

If a business is unable to shorten the preceding working day, employees can be asked to work as usual. In this case, they should be paid an overtime rate of 1.5x their usual wage for any hours not shortened. If the employee refuses (and notifies their employer immediately), they are legally entitled to the time off. If no refusal is made, this can be interpreted as both parties agreeing not to shorten the working day.

How is Holiday pay Calculated in Estonia?

If the working time falls on a public holiday, the employer must pay 2 times the wages for the work. The calculation is as follows:

1. Determine the salary the employee receives for the specific month.
2. Divide this salary by the standard work hours for that month to find the hourly rate.
3. Multiply this hourly rate by two, which is the coefficient for working on a public holiday.
4. Multiply the result by the number of hours worked on the public holiday.

Leinonen’s accounting, payroll and tax experts specialise in cross-border commerce for foreign-owned companies doing business across northern and eastern Europe. With 34 years of operating in Estonia, you can rely on our local expertise already trusted by over 300 foreign-owned businesses in the country. Get in touch today to arrange a consultation.