Funding for R&D Employee Salaries Available Until March 18 Estonian companies can apply for funding to cover the labor costs of research and development (R&D) employees until March 18. The goal is to enhance productivity in Estonian businesses by maintaining existing R&D jobs and creating new ones. The funding covers 50% of the income tax calculated on the R&D employee’s salary for the second half of 2024.

“It’s easy to apply since the funding is calculated based on data from the Estonian Tax and Customs Board. The application process takes about 15 minutes, and there are no reporting requirements after receiving the support,” explained Monica Hankov, Head of Grants at EIS.

Companies have been able to apply for this funding since the first application round opened last summer. At that time, EIS helped more than 40 businesses across Estonia cover R&D employee costs. The supported industries included industrial design, building design, food production, and pharmaceutical development.

According to Statistics Estonia, there were approximately 470 companies in Estonia engaged in R&D activities in 2023, employing R&D professionals. The private sector is the main driver of employment growth in this field. In 2015, there were 1,700 R&D employees in the private sector, whereas by 2023, this number had exceeded 4,500. However, the number of R&D employees per 1,000 inhabitants in Estonia remains less than half of the figures seen in Finland or Sweden.

Compared to last year’s funding round, the conditions have become even more favorable. In January, Minister of Economic Affairs and Industry Erkki Keldo signed amendments increasing the funding rate from 25% to 50%.

Eligible applicants include companies registered in Estonia with at least one R&D employee for whom income tax is paid in Estonia. The employee can be a scientist or engineer with a degree in the field, engaged in fundamental or applied research, experimental development, or innovation to create new knowledge, products, processes, methods, or systems. Additionally, technicians with professional qualifications working under the supervision of a scientist or engineer in R&D activities are also eligible.

The classification of R&D employees is based on their actual work activities rather than job titles. If an employee performs both R&D and non-R&D tasks, only the portion related to R&D is considered when calculating the funding.

This is a call-based grant, meaning applications are accepted throughout the open period from February 17 at 9:00 AM until March 18 at 4:00 PM. The total budget for the application round is €3 million, funded by the state budget.

For a list of companies that have received R&D employee funding and more information, visit: https://​eas.​ee/​toetused/​teadus-​​ja-​are​ndus​toot​aja-​toetus/