According to Aune Maria Marjapuu, head of a unit within the ETCB’s Tax Audit Department, economic operators were checked both on the basis of risk analysis and random sampling. “Our aim was to ensure that seasonal workers were also registered in the employment register and to raise employers’ awareness of their obligations. To that end, we focused this time on inspecting companies in the catering sector across Estonia,” said Marjapuu.
- In Tartu County, the ETCB checked the employment register entries of 156 employees at 38 employers. There were 9 employees at 7 employers who had not been properly registered.
- In Pärnu County, the employment register entries of 154 employees at 36 employers were checked. The ETCB found 10 unregistered employees at one employer.
- In Saare County, the employment register entries of 43 employees at 6 employers were checked. There were 15 unregistered employees at 3 employers.
- In Harju County, the employment register entries of 158 employees at 47 employers were checked. There were 13 unregistered employees at 10 employers.
- In Ida-Viru County, the employment register entries of 57 employees at 23 employers were checked. There were 5 unregistered employees at 5 employers.
- In Lääne-Viru County, the employment register entries of 41 employees at 18 employers were checked. There were 7 unregistered employees at 5 employers.
- In Lääne County, the employment register entries of 26 employees at 8 employers were checked. There were 11 unregistered employees at 6 employers.
- In Järva County, the employment register entries of 13 employees at 6 employers were checked. All employees were correctly registered.
- In Viljandi County, the employment register entries of 19 employees at 6 employers were checked. There were 4 unregistered employees at 3 employers.
Most of the initially unregistered employees have now been registered in the employment register. Proceedings are still ongoing with some of the employers who were inspected.
According to Aune Maria Marjapuu, head of a unit within the ETCB’s Tax Audit Department, the majority of employers were aware of their obligation to register employment. “During our inspections, it became quite clear to us that, above all, employees were left unregistered deliberately to gain a tax advantage. There were only a few cases where employers had simply not managed to register their employees in time,” Marjapuu noted.
The results of the 2026 shadow economy survey show that the catering sector is one of the sectors in Estonia with the highest risk of so-called envelope wages. The greatest risks of under-the-table pay are found in sectors where large amounts of cash change hands and short-term employment relationships are common. For this reason, and based on data from the ETCB’s risk analysis, inspections this time focused primarily on providers of seasonal work in the catering sector.
This summer, too, tax auditors received a fair number of positive responses while out in the field. “For example, there were situations where, during an audit, several dozen people were working in a restaurant at the same time. The shift supervisor organised the work in such a way that service continued uninterrupted and all staff were audited smoothly. We received positive feedback about the ETCB’s work from many quarters – employers said we were doing the right thing. For us, this clearly reflects employers’ understanding that inspecting businesses and guiding those who have failed to comply back onto the right path helps to maintain fair competition in the sector,” stated Aune Maria Marjapuu, head of a unit within the ETCB’s Tax Audit Department.
Most of the economic operators audited offer their employees fair work and fair pay. Thanks to the labour taxes paid on wages, the state can provide benefits to employees. The ETCB commends all economic operators that act responsibly and care about their employees’ rights.
Unfortunately, there are still employers who prefer to offer informal work or work that is not taxed correctly. There are also cases where employees are offered an unpaid trial day, which is prohibited.
“Such an offer is neither beneficial to the employee nor acceptable from the employer. As soon as you start working for someone – for example, serving customers or stocking shelves – that is the work you need to get paid for,” emphasised Aune Maria Marjapuu, head of a unit within the ETCB’s Tax Audit Department.
The ETCB reminds employers and employees that correct accounting for tax purposes safeguards employees’ rights and provides security for the future. Paying so-called envelope wages in full or in part, whether in cash or into a bank account, deprives employees of the rights and benefits that every worker deserves.
Envelope wages are wages on which some or all of the taxes have not been paid. This means that if an employee falls ill or suffers an accident at work, the employee will not receive the compensation they have the right to. By doing undeclared work, employees may also lose their holidays or holiday pay; in labour disputes, the employee is immediately in a weaker position. Upon receiving under-the-table wages, employees also do not accumulate a pension. Such employees are also deprived of unemployment insurance and parental benefit.
The ETCB advises every employee to make sure that their employment has been registered in the employment register no later than their first day of work. This can be checked in the e-services environment e-MTA by selecting “My employments”. On the page that opens you can see your valid employment entries. By clicking on a specific entry number, you can check all the data related to the employment. It is important to make sure that the information displayed is accurate. If this is not the case, the ETCB recommends that you speak to your employer, who can correct the data. If the employer refuses to correct the data, please contact the ETCB by email at [email protected] or seek advice from the Labour Inspectorate at [email protected].
Read more about reasons to refuse envelope wages on the website of the ETCB (in Estonian).
