Hire in Estonia

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Estonia, located in North-eastern Europe, is ranked number 1 by the World Health Organization (WHO), as it has the best air quality in the world. The country is bordered by the Baltic Sea in the north, Russia in the east, and Latvia in the south.

Estonia has an advanced economy, as it is included in the European Union (EU) and the eurozone. The nation’s economy is widely dependent on Finland and Sweden for trade and export.

Estonia has a significant number of skilled, employable talent. To know more about hiring a remote employee in Estonia, book a demo with Skuad now.

Overview of Estonia

Population: 1.3 million people (2021)

Gross Domestic Product (GDP): USD 8,811 million, reported in the first quarter of 2021

Economic Overview

The GDP of Estonia is expected to grow by 2.9% in 2021, and the numbers are expected to increase further in 2022. Undoubtedly, the COVID-19 pandemic hit Estonia hard compared to its neighbors. With strict lockdowns and the recent increase in cases, the new rules by the government will adversely impact the economic activity in the country. However, due to technological advancements and internet connectivity, the country’s unemployment rate is expected to decrease, with new jobs available for the millennial generation.

  • Estonia’s government is currently focusing on improving income equality among the population and adapting to the digital revolution.
  • According to a recent survey, Estonia is constantly improving its information and technology sector by digitizing government services. The government aims to increase productivity using digital platforms and technology. 
  • Estonia is educating adults with adequate skills by providing premium quality infrastructure, which will help the small- and medium-scale organizations in the country.
  • One of the prominent setbacks and risks to the economic stability of the country is its aging population. With the increase in retirements, the government must plan for necessary pension options to prevent old-age poverty.
  • Estonia is performing well by narrowing the income gap with the help of advanced economies. As the country is listed as an advanced economy, workers here get improved wages, driving back immigrants from all across the world. 
  • Since the country’s independence, it has invited various foreign investments and has become one of the fastest-growing nations in the world. The supporting reforms, westernization of the economy, and numerous foreign capitals are driving the country. Skype is one of the best examples of Estonia’s premium innovation.

Market Size

As mentioned above, Estonia is an EU member. The nation follows a contemporary market-based economy, and it has a high per capita income in central Europe and the Baltic region. Also, the economy of Estonia is widely dependent on its trade, making it susceptible to shocks. Estonia’s government is doing well in increasing income opportunities for the population and providing the right infrastructure and support.

Major Industries in Estonia

The major industrial sectors in Estonia are:

  • Energy sector: The oil shale industry
  • Industrial sector: Machinery, engineering, textile, equipment, electronics, and chemicals
  • Services sector: Transport (air and sea), telecommunications, and banking

Internet Speed

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.

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Talent in Estonia

Top Hiring Sectors: Sector-wise Growth and Comparison in Estonia


There is no doubt that Tallinn is the financial capital of Estonia because it is near the Baltic Sea and is the center for all international trades and national distribution. Moreover, companies can also find many educated employees in Estonia, despite the majority of educated people leaving the country and migrating to western Europe for higher income.

The largest bank in Estonia is Swedbank, followed by SEB Pank, and Nordea. There are also various IPO filings in the Tallinn stock exchange, which will bring a lot of funds to the country. The Estonian service sector has 60% of the employed force, and the country is well-known as one of the most wired nations in Europe. Estonia is ranked as the most advanced country in Europe regarding e-government services available for the public.


Farming is the largest industry in Estonia as the country is well-known for producing various crops like wheat, barley, rapeseed, pea, rye, potato, and oat. The government has privatized the farming industry to increase its overall efficiency. New farming technologies have also increased the employment rate in the sector.

Top Skills:
  • Cultivation
  • Harvest 
  • Irrigation
  • Storage and Transport


We don’t talk about mining when we talk about the world’s cleanest and most popular countries in terms of air quality. However, the mining industry flourished since the Soviets discovered a lot 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

Recent research has proved that digital transformation will positively impact Estonia’s productivity and boost the economy. A majority of people are adopting services such as cloud computing and back-office work, which are also responsible for creating various job opportunities for youngsters. There is a 10% increase in the overall internet speed in the nation. It is essential for all the people seeking jobs to be updated with the latest skills and ensure that they don’t lose their careers to automation.

Top Skills:

  • Project management
  • Networking and wireless
  • Programming, and
  • Cybersecurity

Top Skills by City

When there’s so much talent on offer, it becomes tricky to hire the right set of people for your team. Skuad can help you find, hire, and manage excellent local talent and make expansion in Estonia a hassle-free task.

City Skills
  • Sales,
  • Technology,
  • Silicon Valley of Estonia.
  • Cyber-security
  • The Supreme court of Estonia is in Tallinn
  • Tartu
  • Popularly known as the intellectual harbor of Estonia as it is home to the University of Tartu.
  • Estonia’s spiritual capital with beautiful parks and beautiful riverfront wooden buildings.
  • Tourism,
  • Education and research.
  • Narva
  • Trade,
  • Digital marketing,
  • Agriculture, and
  • Food processing.
  • Security.
  • Parnu
  • Popularly known as the summer capital of Estonia.
  • Holiday resort center of Estonia.
  • Tourism, and
  • Labors.
  • Kohtla-Jarve
  • Oil and petroleum.
  • Mining.
  • Technology, and
  • Trade.
  • Product Management
  • Cost of Living in Estonia

    Unlike most of the European nations, the cost of living in Estonia is quite affordable. Tallinn, the capital of Estonia, located in the Northern region, is the most expensive city in Estonia. Estonia is a beautiful country with 50% forests and less populated regions with multiple tourist destinations driving income for workers.

    According to a recent survey, real estate is quite expensive in Tallinn; the average per square meter has increased to EUR 2,464 or USD 2944.04. The cost may also rise if you opt to live in a fully furnished and luxurious apartment in the city.

    Category Area of Expense Estimate (EUR) Monthly Expense (EUR) Estimate (USD) Monthly Expense (USD)
    Food Fruits, milk, groceries, beer, and cigarette 23.77 Euro 500 to 713 Euro 28.21 593.34-846.10
    Transportation Monthly bus pass, gasoline 40.68 610.2 to 1250 48.27 724.12-1483.25
    Utilities Basic (electricity, heating, cooling, water, and garbage); mobile and internet charges 130.77 200.17 154.27 237.54
    Rent In the city and outskirts 2,502.71 (in the city), 1714.45 (on the outskirts) 432.69 (Per day rent of hotel in the city), 316.58 (rent of hotel In outskirts) 2969.17 (in the city), 2034.50 (on the outskirts) 502.78 (Per day rent of hotel in the city) 375.68 (Per day rent hotel rent in outskirt).
    Salaries Average monthly salary 37.733 (average daily income) 1,131.99 (Monthly Income) 44.78 (average daily income) 1343.31

    One person’s estimated MONTHLY cost of living in Estonia is EUR 527.8 or USD 630.88 without rent.

    Hiring Cost in Estonia

    Hiring costs in Estonia are pretty expensive if you are planning to hire a resident from Estonia. You will have to spend around USD 350 (415.34 Euro) to 500 USD (592.15 Euro) if you hire through online recruitment agencies in Estonia. The prices of private recruitment agencies are also high.

    Skuad’s EOR solutions for Estonia can help expand your business while adhering to the tax legislation, labor laws, and contracts.

    Salary Structure for Various Roles in Estonia

    Job Role Average Monthly Salary in EUR Average Monthly Salary in USD
    Marketing Directors (MDs) 1800 to 5700 2136.02 - 6764.08
    Pilots 2000 to 6000 2373.36-7120.08
    College professors 2400 to 8000 2848.03 - 9493.44
    Orthodontists 2500 to 9000 2966.70-10680.12
    Chief Financial Officers (CFOs) 2900 to 8500 3441.37-10086.78
    Chief Executive Officers (CEOs) 3000 to 9500 3560.04-11273.46
    Bank managers 3000 to 10000 3560.04-11866.80
    Lawyers 3500 to 11000 4153.38-13053.48
    Judges 4500 to 13500 5340.06-16020.18
    Doctors 6000 to 16000 7120.08-19010.61

    Employment Laws in Estonia

    • The Estonian work contract must contain the address and the name of the employee, alongside the commencement date and a clear description of the job title. 
    • The trial period in the Estonian work contract cannot exceed four months, and the employer must define the notice during the trial period in a written letter. 
    • The Estonian work contract will only terminate if both parties agree with the termination. 
    • The employee must seek a 30-day notice before termination or resignation from the job.

    Skuad’s EOR solutions for Estonia can help expand your business while adhering to the tax legislation, labor laws, and contracts.

    Estonia Remote Hiring Trends 2022

    Growth in Hiring Activity in Estonia

    In the first quarter of 2022, Estonian organizations, institutions, and enterprises posted 13,076 job vacancies. This represents a 38% increase from the figures registered in the first quarter of 2021. The rise in hiring activity is expected to run through 2022 as the economy continues to recover from the constraints brought by the COVID-19 pandemic.

    Demand for Information Technology Specialists

    With Estonia being one of the most technologically vibrant countries in Europe, the information technology (IT) sector has the fastest growing demand for employees. The country has nearly 5,000 IT companies, with software engineering being the most in-demand role. Estonian software engineering companies currently employ over 5.9% of the nation’s workforce.

    Some of the most in-demand IT roles include:

    • Web application development
    • Mobile application development
    • IT consulting services
    • IT auditing and system evaluation
    • Artificial intelligence (AI) and virtual reality (VR) solutions
    • Blockchain technology-based solutions

    Top 5 Companies Hiring in Estonia

    Here are the top five companies hiring in Estonia as of 2022:

    • Swedbank
    • Bolt
    • Wise
    • Derivco
    • Tallinn University of Technology

    How Can Skuad Help You in Hiring in Estonia?

    Hiring talent and skilled employees from Estonia for your brand can be a daunting task. You need to be familiar with the employment laws, trends, and hiring costs in Estonia to hire the best employees for your company.

    Our digital HR platform takes care of all critical aspects of business expansion, such as sourcing and vetting talent, onboarding, global digital contracts, managing payroll, compliance, and tax filing. We have a dedicated team of experts working for you across time zones and delivering excellent results. This allows you to focus on the business side of things without worrying about the complex hiring and payroll management processes.

    For more information, connect with Skuad experts and book a demo.

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