Aliens Act from 01.01.2027: residence permits for labour-shortage sectors, short-term employment permit abolished

From 01.01.2027 a temporary residence permit may be issued for employment in a labour-shortage sector if the employer's main area of activity entered in the commercial register is on a list established by the Government (Aliens Act, välismaalaste seadus, VMS § 181 lg 8) [1]. Until then a permit could be issued for work in a labour-shortage field named in a Government order [2]. A foreigner working on this basis must be paid at least 80 percent of the Estonian annual average gross monthly wage [3] [4]; the provision on the residence permit for short-term employment (VMS § 176²) applies until 31.12.2026 [5].

What changes

• VMS § 181 lg 8: the previous wording allowed a permit „ilma Eesti Töötukassa loa nõuet täitmata töötamiseks valdkonnas, milles on Eestis vaja vähendada tööjõupuudust“ (translation: without the Unemployment Insurance Fund's permission for work in a field where labour shortage in Estonia needs to be reduced), and „Loetelu valdkondadest, milles on tööjõupuudus, võib kehtestada Vabariigi Valitsus korraldusega kuni kaheks aastaks.“ (translation: the Government may establish the list of labour-shortage fields by order for up to two years) [2]. New wording: „Tähtajalise elamisloa töötamiseks võib anda töötamiseks tööjõupuudusega tegevusalal, kui välismaalase tööandja Eesti äriregistrisse kantud põhitegevusala kuulub käesoleva paragrahvi lõike 12 alusel Vabariigi Valitsuse kehtestatud tööjõupuudusega tegevusalade loetelusse.“ (translation: a temporary residence permit for employment may be issued for work in a labour-shortage sector if the main area of activity of the foreigner's employer entered in the Estonian commercial register is on the list of labour-shortage sectors established by the Government under subsection 12) [1]
• VMS § 181 lg 2 p 4: a permit for work in a labour-shortage sector may still be issued without the permission of the Unemployment Insurance Fund (Eesti Töötukassa) [1].
• VMS § 181 lg 10–12: the sector is defined by its „kahekohaline numbrikood Eesti majanduse tegevusalade klassifikaatori (edaspidi EMTAK-i tegevusala) järgi“ (translation: two-digit code under the Estonian Classification of Economic Activities, EMTAK); the list is established by Government regulation, and „Tööjõupuudusega tegevusalade loetelu kehtestatakse kuni viieks aastaks.“ (translation: the list of labour-shortage sectors is established for up to five years) [1]
• VMS § 181 lg 14 (new): for each calendar year the Government sets the maximum number of residence permits for work in labour-shortage sectors – up to 0.2 percent of Estonia's permanent population under economic growth and up to 0.1 percent in other economic conditions [1].
• VMS § 178 lg 1³ (pay): previously the pay had to be at least equal to the Estonian annual average gross monthly wage in the field named in the Government order [3]. The new requirement is „vähemalt 80 protsenti Statistikaameti viimati avaldatud Eesti aasta keskmisest brutokuupalgast“ (translation: at least 80 percent of the Estonian annual average gross monthly wage last published by Statistics Estonia) [4].
• VMS § 176² (residence permit for short-term employment) applies until 31.12.2026 [5]. So far such a permit could be issued „kuni kaheks aastaks“ (translation: for up to two years), among other conditions where the foreigner had worked in Estonia under registered short-term employment for at least nine months before applying and continued working for the same employer [5]. The short-term employment ground has also been removed from the list in § 181 subsection 2 [1] [2].
• VMS § 309¹⁹ (transition): permits issued under § 176² „kehtivad nende kehtivusaja lõpuni või kehtetuks tunnistamiseni“ (translation: remain valid until they expire or are revoked); an application submitted before 01.01.2027 is processed under the rules in force until 31.12.2026 [6].

Who is affected

Employers wishing to hire foreigners in labour-shortage sectors [1] [4], and foreigners working in Estonia on the basis of registered short-term employment or a § 176² residence permit [5] [6].

What to do

1. Employers: check whether your main area of activity in the commercial register is on the Government's list of labour-shortage sectors [1], and plan for pay of at least 80 percent of the Estonian annual average gross monthly wage [4].
2. If you intend to apply for a short-term employment residence permit under § 176², submit the application before 01.01.2027 so that it is processed under the previous rules [6].