The Estonian Employers Confederation argues that in the conditions of a long-lasting labour crisis, the immigration limit for third-country nationals arriving to work in Estonia on average wages should be abolished or increased significantly.
Arto Aas, the manager of the Estonian Employers Confederation, said in a statement on 12 October that the shortage of skilled labour is one of the main factors holding back the development of Estonian businesses.
He said the confederation believed controlling the immigration cap by means of residence permits does not fulfil its purpose, and the cap should be established in a way that is in line with the needs of the Estonian economy and society.
“In a situation where the deficit of the working-age population to maintain the old-age dependency ratio and the tax burden is increasing by one per cent per year, an immigration cap at this level is inadequate,” Aas said.
Thousands of euros in taxes and GDP
In the opinion of the Estonian Employers Confederation, it is significantly easier to check the legality of employment and security of immigration in the case of third-country workers, because in addition to the usual supervision by the Tax and Customs Board, the Labour Inspectorate and other authorities, the Police and Border Guard Board is also involved.
The confederation recommends significantly simplifying labour migration to Estonia, as an average of €19,000 of taxes is paid for each employee in 2023, and €55,000 of GDP is generated.
“It makes more sense to reduce the state budget deficit through additional economic growth, not through new taxes,” Aas said.
