Estonian Unemployment Insurance Fund Modern ERP powers Public Sector efficiency

Eesti Töötukassa is Estonia’s national unemployment insurance fund, supporting citizens through benefits and employment services. With a two-level structure and ~30 service points, it plays a key role in the country’s digital public sector evolution.

Eesti Töötukassa, Estonia’s national unemployment insurance fund, recognized the need to modernize its financial and HR systems to better serve citizens and streamline internal operations. Their legacy ERP system, Microsoft Dynamics NAV2017, was becoming increasingly difficult to maintain and lacked integration with other state-level services. The organization sought a future-ready platform that could support automation, improve transparency, and align with Estonia’s broader digital government strategy.

“We needed a system that could keep pace with our evolving needs and integrate seamlessly with other public sector platforms,” says Raina Talvis, Head of Information Systems Development. The upgrade was not just a technical necessity—it was a strategic move to enhance service delivery and operational resilience across the organization: “Our goal was to reduce manual work, improve reporting accuracy, and ensure compliance with national regulations,” Talvi outlines the overall ambition.

Fujitsu was selected through a public tender for its strong local presence and proven expertise in public sector digital transformation. The project began with detailed process mapping and requirement analysis, followed by a phased rollout to minimize disruption. Fujitsu’s Agile approach enabled iterative development, with regular feedback loops and sprint-based testing.

The migration to Microsoft Dynamics 365 Business Central included finance, HR, and payroll modules, along with full data migration and integration with external systems such as financial institutes and Estonian government registries. Fujitsu ensured continuity by maintaining the legacy system during the transition and customizing Business Central to replicate critical workflows.

“Fujitsu’s team was professional and responsive. “They listened to our feedback during testing and adapted the solution to meet our needs. The ‘train-the-end-user’ model helped our teams feel confident and prepared”, Talvis points out.

The collaboration was agile and iterative. Despite challenges such as data migration complexity and tight timelines, the project was delivered on schedule and within scope—laying the foundation for future innovation.

The new Dynamics 365 Business Central platform has transformed how Estonian Unemployment Insurance Fund operates. Real-time dashboards, automated reporting, and improved workflow management have significantl boosted efficiency and reduced errors. Finance and HR teams now benefit from faster approvals, seamless data exchange, and enhanced audit trails. Talvis explains: “For example, the new platform enables advanced dashboards and improved workflow automation, providing a foundation for further digital initiatives. The single integrated system has increased transparency and improved decision-making, benefiting both internal staff and external partners.”

Internal user satisfaction has risen, with surveys showing improved ease of use and faster access to information. The unified system experience has eliminated the need to switch between disconnected platforms, fostering collaboration and productivity.

“The biggest impact is improved efficiency and transparency,” confirms Talvis. “We’re now better equipped to deliver reliable services to citizens and partners."

With a scalable, integrated solution in place, Estonian Unemployment Insurance Fund is well-positioned to pursue further digital initiatives and deepen its partnership with Fujitsu in the years ahead.