A draft law aimed at simplifying the recruitment of foreign labor would allow up to 1,300 foreign workers per year to be brought into sectors facing labor shortages, but under conditions of economic growth, that number would double to 2,600.

The bill to amend the Aliens Act creates a special provision allowing employers to recruit foreign workers for sectors where Estonia lacks sufficient labor.

Interior Minister Igor Taro said in response to a question from a member of parliament that foreign labor would be brought in for shortage occupations in a controlled, needs-based way, according to specific criteria and within a fixed quota.

"The maximum number of residence permits that can be issued under this exception for work in shortage sectors is up to 1,300," Taro said.

However, the bill also stipulates that during periods of economic growth, the number of foreign workers permitted to come to Estonia would rise to 2,600. Forecasts by the Ministry of Finance project economic growth for most years, meaning that in practice the higher limit would usually apply.

Normally, employers must obtain prior approval from the Unemployment Insurance Fund before hiring a foreign worker. This requirement would not apply in shortage sectors, as it is already clear that the necessary workforce cannot be found in the local labor market.

The list of shortage sectors will be developed based on specific criteria, including labor demand forecasts, the share of exports in sector revenue, and the sector's average gross wages.

At present, these criteria would qualify companies in manufacturing, transportation, and warehousing for the exception.

The government may set the list of shortage sectors for up to five years at a time.

To employ a foreign worker in a shortage sector, an employer must pay at least 80 percent of Estonia's average monthly gross salary, a safeguard intended to prevent the import of cheap labor.

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