The amount of data entered in the employment register increases – does it also mean the increase of administrative burden for businesses?

Therefore, starting from 01.01.2019, it is extremely likely that the tax payer will have to enter more data to the employment register than before. The exact composition of the data for the employment register will be set out with a regulation („määrus“ in Estonian) and it is planned to add three new data categories in regards to a working individual: official title, the address of the workplace and rate of the working time.

According to the explanatory memorandum, the purpose of the amendments is to decrease businesses administrative burden. However, without knowing the exact functionality with which one must fill the data fields, it could lead to an opposite outcome. Most affected by the amendment, is the administrative burden of those entrepreneurs, who have many employees, high labor turnover or who often use short-term forms of work. The above mentioned amendments only affect the employees who have already been hired or will be hired according to employment contract.

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