According to which kind of contract should you work?

For working and getting salary for work the most widespread contractual forms are the employment contract according to the Employment Act and the contract for services based on the Law of Obligations Act. Irrespective of the contractual form, based on which work is executed, it is necessary to register employment in the Employment Register (Töötamise register - TÖR).

An employment contract is an agreement between an employee and an employer, according to which the employee undertakes to work for the employer, be subordinate to his/her guidance and control; the employer undertakes to pay the employee salary for the executed work and ensure the parties’ a contract, a collective agreement, and working conditions provided by the legislation or the administrative act. Since 2022, the establish minimal hourly pay is 3.86 EUR and the minimal rate of monthly salary is 654 EUR.

The employment contract or the contract under the law of obligations obliges the employee to execute work agreed to in the contract, and the contracting entity to pay charge for it. In the employment contract the executable work is described, the salary and the deadline are established. Until the deadline agreed to, the employee can execute work in a freely chosen way and time. It is worth to pay attention to the fact that when working on the basis of the contract for services, no right to holiday is provided in the employment contract (e.g. annual holiday, study leave, etc.).

The right to health insurance is guaranteed to all persons working on the basis of an employment contract and the contract for services, for whom one or several legal persons pay social tax from the salary within the minimum obligation from the social tax in a month, which is 192.72 EUR in 2022.

As of September 1st 2020, the registered unemployed may do temporary work besides looking for the main job, without being afraid that the registration as unemployed would end due to working. Working temporarily while being registered unemployed or doing a work bite is working while being unemployed, which enables the job seeker to be professionally active while looking for a job vacancy. Employment may be based on an employment contract or a contract under the law of obligations. It is allowed to work eight days a month. One contract for working eight days per month or eight one-day contracts may be concluded - there are no restrictions imposed by the legislation.

When using the environment of for working temporarily, we recommend the contractor and the contracting entity to conclude an agreement in writing specifying the details of the work. Concluding an employment contract enables both parties to understand each other unambiguously and parties do not have to keep an eye on details continuously.

On the homepage of Arveteenus there is a template of an employment contract prepared already. When the work is done and the invoice sent, the employee of registers the worker for one day in the Employment Register to pay the salary on the certain date, the applied taxes are calculated and deducted from the salary. The employee is registered in the Employment Register and taxes are deducted from salary and paid accordingly. You can see your contractual relationships with the employers in the e-environment of the Tax and Customs Board.

Photo: Sora Shimazaki 

Latest news in your inbox!

We always keep you informed of important news.

Customer reviews

My favourite part of your service is the calculator, it's handy and also an educational tool on where taxes go. A beginner may not understand exactly where and why some of the money they earn goes. The payment also arrives quickly, which is very nice.
Helen Rectangles Helen  
I used the Arveteenus payment service page to buy in an expert consultation and everything worked smoothly. The invoice came in the mail, I paid it and my company didn't have to do any more paperwork on the contractor.
Hannes Rectangles Hannes Hannobalt OÜ (torutööd)
A very interesting service which at first seemed unnatural to use, that as a private individual I can bill a company for my service. I was commissioned to do cleaning services which I did on top of my day job.The job Customer himself suggested we use the invoicing service so that he could get a cost document for the company and directed us to use the invoicing service. The invoicing was easy but it took a little time to enter the correct price into the calculator. The money was transferred to my account the next day. I will definitely use the service again.
Andres Kuusk Rectangles Andres Kuusk
I used the payment service to test the speed and quality of the service. I was providing saddlery services as a private individual for a company that wanted to receive an invoice. The money moved very quickly, as the customer I provided the service to paid the invoice to on the same day. The service is transparent with a clear overview of where and to whom the fees are paid. Ideal service for extra work or for main work where billing is clear. Our staff often want to work overtime and earn extra pay. Within Smartservice OÜ, we are considering using this solution to bill for piecework and overtime payments.
Martin Kaadu Rectangles Martin Kaadu
Olen põhi kohaga tööl Technopolis Ülemiste. Oskan erinevaid puusepa, aia ja tänavakivi paigalduse töid mida olen oma aias alati ise teinud. Eelmine nädal palus abi naabrimees, aitasin naabrimehel paigaldada tänavakivid maja ette kuhu on ka tema ettevõte registreeritud töökohana. Seega tahtis mulle tasu maksta ülekandega ettevõtte arvelt ning otsustasime kasutada arveteenuse lahendust. Mina väga rahul, sain aitamise eest raha ja naabrimehel kivid pandud ja temal olemas kuluarve tehtud tööde eest ettevõttele nii et kõik maksud makstud. Arve esitamisel pidi natuke jälgima summasid mida arvele sisestada, et minu teenitud tasu oleks täpne. Vormistamine võttis aega 5 minutit. Super lahendus!
Raivo Terve Rectangles Raivo Terve

Submit an invoice

By using our service, you can submit a real invoice to the customer. Honest work deserves fair pay - it doesn't matter if you're a freelancer, a light entrepreneur or a job seeker.

Submit an invoice

To the employer offers a simple solution for paying a contractor. If the contractor submits an invoice through, your company will pay for the work in one payment.

Read more