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Employment Contracts Act, Estonia (Regular Pay)

Employment Contracts Act, Sec 28-33 (Regular Pay)


Wages are the remuneration which an employer pays to an employee for work performed in accordance with an employment contract, legal instrument or in other cases prescribed by legislation, a collective agreement or employment contract. Wages are comprised of basic wages and additional remuneration, bonuses and additional payments paid in the cases prescribed by law.

The relevant law on payment of wages is Employment Contracts Act. An employer is under obligation to pay wages to the work under the conditions and at the time agreed on. The wage period may vary for different workers however it cannot exceed one month. Wages have to be paid at the end of wage period in the form of money and legal tender. Wages in kind are not allowed. If a pay day falls on a public holiday or weekly rest day, pay day is deemed to be the day preceding the public holiday or day-off.

There is no clear indication in the law on the number of days at the end of a wage period within which wages have to be paid to a worker. On a pay day, an employer is required to transfer an employee’s wages and other remuneration to the bank account indicated by a worker, unless otherwise agreed.

The tax liabilities on an employee are debited from a worker’s wages.

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