Holiday pay in Estonia: annual leave, calculation and unused leave

By Ero Liivik, lawyer (jurist) at Erovik Law Office · Updated 2 November 2026

Under the Employment Contracts Act (TLS), employees in Estonia get 28 calendar days of basic annual leave a year, or more if agreed or provided by law, and holiday pay is normally paid before the holiday starts. Holiday pay in Estonia follows a set formula based on average earnings over six calendar months; if you were paid only a fixed salary, it simply equals that salary. Unused leave that has not expired is paid out when employment ends.

Key points

• Basic leave: 28 calendar days a year; 35 for minors and employees with partial or no work ability. Public holidays do not count as leave days (TLS §§ 54(3), 55–57).
• You can demand leave after six months with the employer; in the year you start, leave is earned in proportion to the time worked (TLS § 68(4)).
• Holiday pay is due by the second-to-last working day before the holiday, unless agreed otherwise, and never later than the first payday after it (TLS § 70(2)).
• Unused leave expires one year after the end of the year for which it was given and cannot be cashed in during employment (TLS §§ 68(6), 70(3)).
• On termination, unused unexpired leave is paid out, and pay for leave taken in advance may be deducted (TLS §§ 71, 78(3)).

How much annual leave you get

Basic annual leave (põhipuhkus) is presumed to be 28 calendar days, unless your contract gives you more or the law provides otherwise (TLS § 55). Weekends count, so 28 days is four weeks, but national and public holidays (riigipühad) do not use up leave days (TLS § 54(3)). Your written contract must state the length of your basic leave (TLS § 5(1) p 9), and an agreement giving you less than the Act is void (TLS § 2).

Longer leave for some employees

• Minors: 35 calendar days (TLS § 56).
• Employees with partial or no work ability established under the Work Ability Allowance Act: 35 calendar days (TLS § 57).
• Education workers in positions listed by a Government regulation: up to 56 calendar days (TLS § 58).

For minors and employees with partial or no work ability, the employer can have holiday pay for up to seven of the extra days reimbursed from the state budget. It must apply to the Social Insurance Board (Sotsiaalkindlustusamet) within three months of the month in which the leave was used (TLS § 66(1), (4), (5)).

Earning leave: the first year and absences

Leave is earned for time worked, and a full calendar year gives full leave. Sick leave and most other leave count as time worked, but parental leave (vanemapuhkus) and unpaid leave agreed with the employer reduce your leave proportionally (TLS § 68(1)–(3)).

If you start work on 1 July, for example, you earn about half a year’s leave for that year. You can demand leave only after working for the employer for at least six months (TLS § 68(4)). Earlier leave can be agreed, but if the job ends before you have earned it, the employer may deduct the pay for it (TLS § 78(3)). This is relevant during the probation period.

The holiday schedule and splitting leave

The employer decides when basic leave is taken, considering employees’ wishes where they can reasonably be combined with the interests of the business (TLS § 69(1)). It must draw up a holiday schedule (puhkuste ajakava) for each calendar year and make it known to employees in the first quarter. The schedule can be changed by agreement (TLS § 69(2), (4)). For leave that is not in the schedule, you must notify the employer 14 calendar days in advance in a form that can be reproduced in writing, such as an e-mail (TLS § 69(3)).

• Splitting: only by agreement. You must take at least 14 calendar days in one go, and the employer may refuse parts shorter than seven days (TLS § 68(5)).
• Interruptions: the employer may interrupt or postpone your leave only for an unforeseen, essential operational need, and must compensate your costs and give you the rest later (TLS § 69(5)). You may do the same for important personal reasons, such as illness, telling the employer at the first opportunity (TLS § 69(6)).

Carrying over leave and when it expires

Basic leave should be used during the calendar year, but any unused part is carried over to the next year (TLS § 68(5)). The claim expires one year after the end of the calendar year it was calculated for: leave for 2025, for example, expires at the end of 2026. Expiry is suspended during maternity, paternity, adoption or parental leave and during conscript or alternative service (TLS § 68(6)). If the employer postponed or refused your leave, get advice before treating it as lost. While the contract lasts, an agreement to replace leave with money or other benefits is void (TLS § 70(3)).

How holiday pay is calculated

Holiday pay (puhkusetasu) is calculated under the Government regulation on the conditions and procedure for paying average wages (Keskmise töötasu maksmise tingimused ja kord) (TLS §§ 29(8), 70(1)):

1. Reference period: the six calendar months before the month in which the second-to-last working day before your leave falls (regulation § 2(2)).
2. Pay: add up the pay earned in that period that has become payable to you, including variable pay such as commission (regulation § 2(1), (2); TLS § 5(1) p 5).
3. Divide by the calendar days in the period. Leave out national and public holidays, and days on which you lawfully did not work and were not paid, for example because of illness (regulation § 4(2), (3); TLS § 19).
4. Multiply this average calendar-day pay by the number of leave days (regulation § 4(5)).

• Fixed pay only: if you received only a fixed wage for the six months, no average is calculated and your holiday pay is that fixed wage (regulation § 1(1¹)).
• Average below salary: if the result is lower than what you would have earned by working during the same period, the employer may pay your agreed wage instead (regulation § 4(6)).
• New employees: with less than six months of work, the months for which pay has become payable are used. If holiday pay must be calculated before your first payday, you receive your agreed wage (regulation § 2(3)).

Worked example

Anna’s 14-day holiday starts on the first working day of June. The second-to-last working day before it falls in May, so her reference period is November to April. Her employer divides her salary and commission for those six months by the number of calendar days from 1 November to 30 April, minus the public holidays and any days she was off sick. It then multiplies the result by 14. Had her holiday started on the third working day of June, the second-to-last working day would fall in June and the reference period would be December to May.

When holiday pay must be paid

Holiday pay is due no later than the second-to-last working day before the holiday starts. Payment together with the salary can be agreed, but an agreement to pay it later than the first payday after the holiday is void (TLS § 70(2)). Without such an agreement, holiday pay that arrives only with your next salary is late.

Unused leave when the employment ends

When the contract ends, for whatever reason, the employer must pay money for unused basic leave that has not expired (TLS § 71). This falls due when the contract ends (TLS § 84(1)).

Pay for leave you took in advance but had not yet earned may be withheld from your final pay without your consent (TLS § 78(3)). The employer must respect the protected-income limits in § 132 of the Code of Enforcement Procedure (TMS) (TLS § 78(4)). Most other deductions need your consent in a form that can be reproduced in writing. Consent given in advance, for example in the employment contract, is generally void (TLS § 78(1), (2)). See also our guides on termination of employment and redundancy in Estonia.

If holiday pay is missing or wrong

1. Ask the employer to show how it was calculated (TLS § 28(2) p 12) and check it against the steps above.
2. Send a written demand with a deadline. Late payment interest can be claimed (§ 113 of the Law of Obligations Act (VÕS)).
3. Apply to the Labour Dispute Committee (töövaidluskomisjon) at the Labour Inspectorate, or go to court. The committee charges no state fee and, as a rule, reviews an application within 45 calendar days (§§ 4, 15 and 38 of the Labour Dispute Resolution Act (TvLS)).

A claim for pay (töötasu) can be brought within three years of falling due (TLS § 29(9)). Most other employment claims must be brought within four months of when you learned or should have learned of the breach (TLS § 3¹). The Act does not say expressly which of these limits applies to holiday pay or to compensation for unused leave, so it is safest to act within four months. Our unpaid salary guide explains the committee procedure step by step.

Typical mistakes

• Employers: paying holiday pay with the next salary without an agreement; leaving commission out of the calculation; counting public holidays as leave days.
• Employees: letting carried-over leave expire; taking unscheduled leave without 14 days’ notice in writing; not checking that unused leave is in the final pay.

Frequently asked questions

How many days of annual leave do you get in Estonia?

28 calendar days a year, not counting public holidays. Minors and employees with partial or no work ability get 35, and some education workers up to 56. More can be agreed with the employer.

Is holiday pay the same as my normal salary?

It is if you were paid only a fixed wage in the six-month reference period. Otherwise it is based on your average calendar-day pay, which may be higher or lower than your salary; if it is lower, the employer may pay your agreed wage instead.

Can I get paid instead of taking my holiday?

Not while the employment continues: such an agreement is void (TLS § 70(3)). Unused leave that has not expired is paid out only when the contract ends (TLS § 71).

How Erovik Law Office can help

We advise employees and employers on annual leave and holiday pay: checking holiday and final pay calculations, drafting demand letters and Labour Dispute Committee applications, and reviewing employment contracts, in Estonian or English. See our employment law services, fees and contact page, and our guide to the employment contract in Estonia.

This guide reflects Estonian law in force on 1 November 2026. It is general information, not legal advice for your situation.