Compensation rates for accommodation expenses incurred during a business trip in Estonia are not less than 200 kroons and abroad 800 kroons per one day. Maximum is 1200 kroons in Estonia and 2000 kroons in abroad per one day. Higher  compensation is allowed if it is determined by the manager of the company and in case the destination lacks accommodation places, which price level would fit the allowed price range. Limits are assessed for each separate day. Marginal rate of accommodation expenses will be considered separately for each day.

Other expenses incurred during a business trip will be compensated according to the procedure established by the director of the company, on the basis of associated documents substantiating the costs. (Marginal rate - 35 % from daily allowances will not apply any longer).


Daily allowances are paid:

  • During business trip outside Estonia 500 EEK per day. During business trip in Estonia any daily allowances will not be paid. If compensation exceeds this limit, company has to pay fringe benefit tax.
  • In case of coming back from one business trip and going to another trip during the same day, daily allowances will be paid only once.
  • Daily allowances will be paid if plane or ship etc. leaves at least 3 hours before midnight or arrives at least 3 hours after midnight.
  • It is allowed to pay daily allowances during business trip in Estonia, in that case it has to be taxed as salary or as fringe benefit.
  • Employer can reduce daily allowances up to 70% in case the catering is free in trip's location.

Driving expenses will be compensated on the basis of cost substantiation documents.


Business trip with a personal car:

  • Employer can compensate car costs according to the gas receipt.
  • Employer can compensate 4 EEK/km, but not over 4000 EEK per month.
  • Employer can pay 1000 EEK to employer per month, without paying any taxes.

Costs must be compensated to the employee. Member of the board or member of council will get compensation only, if it is agreed so between the company and the member.

While employee is working abroad under contract, employer must pay daily allowances and compensate other costs according to rates that are used in abroad. 


Employer has a right to send an employee to a business trip for up to 30 days without asking employee's consent.