Hire your remote team in Estonia

Only 499 EUR per employee per month

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Hiring a remote team in a country as Estonia comes with a lot of overhead, such as compliance, local laws, taxes, etc. As a company, you don't want to worry about knowing all the local laws. Instead you want to focus on your remote team and the business. Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Estonia. We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business.

A remote team

1. Hire a remote team in Estonia with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in Estonia, particularly if you don't have established local relationships. You can hire employees in Estonia effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction

Rivermate is a global employment solutions company that provides Employer of Record services in Estonia.

As an employer of record, we help you hire employees and run payroll services in Estonia, allowing you to avoid the necessity of first establishing a branch office or subsidiary in Estonia.

It is not necessary to establish an entity in order to hire an employee. We can hire your employee in any country with a few mouse clicks. Using our Employer of Record solution, you can have full compliance, benefits, and automated payments.

If you wish to hire a remote team in Estonia or individually hire remote employees in Estonia, Rivermate’s global employer of record services will make sure that the process will be as seamless as possible for you.

Send us a message so we can talk about how Rivermate’s Employer of Record Estonia services can best help your company!

3. Hire a remote team in Estonia

The World Health Organization (WHO) ranks Estonia first in the world for having the finest air quality. Estonia is situated in North-eastern Europe. The Baltic Sea borders the nation to the north, Russia to the east, and Latvia to the south.

Estonia has a developed economy since it is a member of the European Union (EU) and the eurozone. The country's economy is heavily reliant on Finland and Sweden for commerce and export.

4. Cost of living in Estonia

The cost of living in Estonia is $1019, which is 1.09 times the global average. Estonia ranks 59th out of 197 nations in terms of cost of living and 22nd in terms of quality of life.

In Estonia, the average after-tax wage is $1277, which is enough to pay living costs for 1.3 months.

5. Cost of renting in Estonia

In comparison to the rest of Europe, the cost of living in Estonia is fairly low. Tallinn, Estonia's capital and largest city, is the most costly city in the country. Estonia is a lovely country with 50% woodland and less inhabited areas, as well as several tourist spots that provide revenue for employees.

According to a recent poll, real estate in Tallinn is highly costly; the average price per square meter has risen to EUR 2,464 or USD 2944.04. If you want to live in a completely equipped and elegant apartment in the city, your costs may climb as well.

6. Major industries in Estonia

The top industries where employers will want to hire remote employees from Estonia are the following:

- Energy sector: The oil shale industry

- Industrial sector: Machinery, engineering, textile, equipment, electronics, and chemicals

- Services sector: Transport (air and sea), telecommunications, and banking

According to recent statistics, the average internet speed in Estonia is 81 Mbps for fixed connections, and for mobile connections, it is 49.73 Mbps.

7. Hiring cost in Estonia

Hiring fees in Estonia are rather high if you want to engage an Estonian resident. If you employ using internet recruiting firms in Estonia, you will have to pay between USD 350 (415.34 Euro) and USD 500 (592.15 Euro). Private recruiting services charge exorbitant fees as well.

8. Employment laws Estonia

The address and name of the employee, as well as the start date and a detailed description of the job title, must be included in the Estonian work contract.

The trial term in an Estonian labor contract cannot exceed four months, and the employer must establish the notice time in a written letter during the trial period.

The Estonian labor contract will only be terminated if both parties agree.

Before being terminated or resigning from a job, the employee must request a 30-day notice.

9. Top skills Estonia

The most in-demand job skills in Estonia are the following:


Tallinn is without a doubt Estonia's financial capital due to its proximity to the Baltic Sea and central location for all international transactions and national distribution. Furthermore, despite the fact that the bulk of educated individuals leave the nation and go to Western Europe for greater salary, enterprises may locate many educated personnel in Estonia.

Swedbank is the biggest bank in Estonia, followed by SEB Pank and Nordea. There are also many IPO files on the Tallinn stock market, which will bring in a lot of money. The Estonian service industry employs 60% of the workforce, and the country is well-known as one of the most technologically advanced in Europe. Estonia is recognized as the most advanced nation in Europe in terms of public access to e-government services.


Farming is Estonia's major sector since the nation is well-known for growing crops such as wheat, barley, rapeseed, pea, rye, potato, and oat. To improve overall efficiency, the government has privatized the agricultural business. New agricultural technology have also enhanced the sector's employment rate.

Top Skills:

- Cultivation

- Harvest

- Irrigation

- Storage and Transport


When we speak about the world's cleanest and most popular nations in terms of air quality, we don't talk about mining. The mining sector, on the other hand, has thrived since the Soviets found a large amount of peat, clay, limestone, sand, and gravel in the 1950s.

Top Skills:

- Skilled labor

- Distribution

- Strong technical skills

- Engineering

- Management

Information Technology (IT) and Computers

According to recent studies, digital transformation will increase Estonia's production and economy. The majority of people are embracing services such as cloud computing and back-office work, which are also responsible for the creation of many career prospects for young people. The total internet speed in the country has increased by 10%. It is critical for all job seekers to stay up to speed on the newest skills and avoid losing their employment to robots.

Top Skills:

- Project management

- Networking and wireless

- Programming, and

- Cybersecurity

10. Economic landscape in Estonia

Estonia's GDP is predicted to expand by 2.9% in 2021, and the figures are likely to rise further in 2022. Without a doubt, the COVID-19 epidemic impacted Estonia worse than its neighbors. With rigorous lockdowns and a recent surge in cases, the government's new laws will have a negative influence on the country's economic activities. However, as a result of technical improvements and increased internet access, the country's unemployment rate is predicted to fall, with new opportunities available for the millennial population.

- The Estonian government is presently working on increasing economic equality and adjusting to the digital revolution.

- According to a recent assessment, Estonia's information and technology industry is continually developing through digitizing government services. The government intends to boost productivity by using digital platforms and technology.

- Estonia is training persons with necessary skills by providing high-quality infrastructure that will benefit the country's small and medium-sized businesses.

- The country's aging population is one of the most visible setbacks and threats to its economic stability. As the number of retirees rises, the government must prepare for the essential pension alternatives to avoid old-age poverty.

- Estonia is doing well by closing the income gap with the assistance of advanced economies. Because the nation is classified as an advanced economy, employees here earn higher earnings, attracting immigrants from all over the globe.

- Since its independence, the country has welcomed different international investments and has become one of the world's fastest-growing economies. Supporting reforms, economic westernization, and various foreign capitals are propelling the nation. Skype is a prime example of Estonian premium innovation.

11. Market size in Estonia

As previously stated, Estonia is a member of the European Union. The country boasts a modern market-based economy with the highest per capita income in Central Europe and the Baltic area. Furthermore, Estonia's economy is heavily reliant on trade, making it vulnerable to shocks. Estonia's government is doing an excellent job of boosting economic prospects for the citizens while also providing enough infrastructure and assistance.

12. Minimum wage in Estonia

As of 2020, Estonian compensation laws require a minimum monthly wage of 584 EUR. However, many employees in the country earn at least 1,200 EUR per month. You must pay your employees at least once a month and withhold all payroll taxes at the source as an employer. Remember that a collective bargaining agreement (CBA) could change these laws, so check to see if your industry has an applicable agreement.

13.Why choose Rivermate to hire your remote team in Estonia?

Establishing an entity in Estonia to hire a team takes time, money, and effort. The labor law in Estonia has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Estonia simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Estonia give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Estonia via our Employer of Record (EOR) / PEO solution.

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