Bill could exempt select skilled workers from Estonia's immigration quota
Facing labor shortages, Estonia may soon let companies hire skilled foreign workers in certain sectors outside the country's strict annual immigration quotas.
Under the planned changes to the Aliens Act, sectors facing labor shortages — currently manufacturing, transportation, and warehousing — could more easily hire skilled foreign workers, who must be paid at least 80 percent of Estonia's average salary.
Estonia normally issues about 1,300 temporary residence permits each year, a limit meant to protect the labor market from cheap labor. Officials say existing exceptions haven't done enough to support skilled recruitment.
The new rules would let work permits be issued outside the quota and without approval from the Estonian Unemployment Insurance Fund (EUIF).
Last year, Estonia's average gross monthly salary was €1,981, making the minimum pay under the law €1,585. The government says this ensures wages reflect skilled labor market rates while preventing an influx of low-cost labor.
Veiko Pesur, communications adviser at the Ministry of the Interior, said eligible sectors will be determined using specific criteria: labor forecasts from OSKA, the Estonian Qualifications Authority's demand-monitoring system, a sector's export share of sales, and average salaries.
"Based on these criteria, the distinction would currently apply to companies in manufacturing, transportation, and warehousing," Pesur said. He added that the government can set the list for up to five years, noting the measure "gives the state a lever to support companies operating in sectors with labor shortages and to promote economic development."
The bill's statement of purpose predicts labor shortages will worsen. Manufacturing could face a shortfall of about 490 specialists with degrees in production and processing, healthcare about 1,300 medical professionals and ICT around 1,550 people annually. The government expects foreign hires to complement, not replace, local workers, boosting productivity and skills.
The statement estimates the changes could bring 1,300–2,600 foreign workers and 760–1,520 family members to Estonia annually, depending on economic conditions. At the same time, the number of permits applied for on other grounds could decline.
The shift could raise the proportion of foreigners in Estonia, where immigrants and their children already make up about a third of the resident population. Not all arrivals are expected to stay permanently, however, so the overall demographic impact is likely limited.
At the start of 2025, Estonia's population stood at 1,369,995.
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Editor: Karin Koppel, Aili Vahtla
