Is It Affordable and Reasonable to Hire Developers in Estonia?
What to Expect from an Estonian Developer for Hire
At the moment, the Estonian economy continues its development. The IT industry is also not an exception. Its main trend is the development of software products for the state, the banking sector, and electronic commerce within the country. For example, Estonia was the first country that held parliamentary elections in electronic form, according to E-Estonia.com, and recently it introduced a system for the electronic receipt of residence permits. Due to extensive technical competence and cheap costs, many worldwide firms opt to outsource Estonia-based teams for their IT and software development needs.The technologies that are intended for this purpose are in the greatest demand in this country. In general, the Estonian IT sector is represented by domestic companies, whose products are also oriented to the local market.
How Is IT Consulting Popular in Estonia?
The popularity of IT consulting in Estonia is very high. This is facilitated by the digitalization of the government of the country, which is focused on the technology of the business ecosystem. The tech-savvy and innovation-oriented population of Estonia also plays an important role. As a result, Estonian specialists create real IT miracles in the field of consulting, development and digital transformation.
Let’s look at some numbers to better understand the picture of the IT industry in Estonia. The IT industry growth rate in Estonia is 8.57%. In a country with a population of 1.3 million, there are 3,400 IT companies including software development company in Estonia and web development company in Estonia, and 22,000 IT professionals. By the way, tech export value is $2.68 billion and continues to grow steadily.
With such a variety, finding the right specialist in Estonia is not a problem. Especially if you are looking for someone who knows PHP, ASP.NET, Python, Node.js, Ruby. These are the most common programming languages in the country.
Estonia’s English Proficiency Index score of 570, signifying “High Proficiency,” showcases the country’s impressive command of the English language, bolstering its international communication and economic competitiveness.
Employment Conditions in Estonia
Estonia’s job market shows a mix of different fields, with a focus on technology, manufacturing and services. The tech industry, in particular, plays a big role in the country’s economy. Estonia’s strategic location and digital infrastructure have paved the way for a flourishing business environment. This has encouraged both local and international companies to set up shop.
In Estonia, paydays usually come around once a month. And, this enables employees to receive their salaries towards the end of the month. Employers need to follow specific rules about taxes, including social security and healthcare contributions. These taxes can affect a company’s overall expenses pretty much, influencing their ability to grow and create more opportunities.
The minimum wage in Estonia has seen gradual growth! It aims to improve the living standards of workers. As per recent information, the minimum salary is around $725 per month. If employees work extra hours, they can expect additional pay. This is stated by the labor laws. This overtime pay is usually higher than the regular rate.
Employee benefits are an essential part of the work environment in the country. Many companies offer fantastic health insurance, paid time off and retirement plans to support their employees’ well-being. These perks are intended to create a positive work atmosphere.
IT Market in Different Cities Across the Estonia
It is worth recognizing that, despite being progressive, the average salaries in Estonia are quite low. For example, a Tallinn web developer earns an average of €2,743 per month and iOS developer Tallinn gets €4,000 per month.
Estonia’s capital city is Tallinn. It is renowned for having a thriving tech community and providing lots of chances for software engineers. Tallinn has a thriving digital economy, which contributes to a higher average income for software developers than in other Estonian cities. Software developers in Tallinn currently make an average pay of €5,500 per month, depending on characteristics like experience and skill.
The second-largest city in Estonia is Tartu. It serves as a prominent center for technology and software development. Despite being slightly lower than in Tallinn, the average pay for software developers in Tartu is nevertheless competitive on the Estonian market. In Tartu, software developers get a monthly salary of €4,689 on average. There are a sizable number of developers in Tartu.
Near the Russian border, in northeastern Estonia, is the city of Narva. It has a growing IT industry. In contrast to large towns like Tallinn and Tartu, Narva’s typical pay for software developers is generally lower. In Narva, software developers get a monthly income of €3,142. Even while Narva may not have as many developers as other towns, the number of people working in the local tech sector is constantly expanding.
Popular beach city of Pärnu in western Estonia. It is also present in the landscape of software development. The average wage for software engineers in Pärnu can vary depending on the specific company and industry, despite the fact that the tech sector is less significant than in previous cities. As of right now, Pärnu’s average monthly pay for software developers is €2,000. Perhaps fewer developers reside in Pärnu than in bigger towns.
Estonia’s Kohtla-Järve is in the northeast. It is most known for its industrial sector, which includes the extraction of oil shale. In comparison to places like Tallinn and Tartu, Kohtla-Järve’s IT industry is comparatively tiny. As a result, Kohtla-Järve often has lower average salaries for software developers. In Kohtla-Järve, software developers make an average monthly salary of €2,450. Even though Kohtla-Järve may not have many developers, the city nonetheless provides prospects for individuals looking for local work in the IT industry.
Of course, the average salary of an IT specialist in the country depends not only on the city, but also on the direction in which the specialist works. So, web developer Estonia will earn an average of €2,832 per month, and .NET Developer – €7,140.
Check Profiles of Available Developers in Estonia
We have several consultants in Estonia available for hire right now – check their profiles below and inquire for more!
3 years of experience
Liina is a committed backend developer, specializing in Node.js. Throughout her career in Estonia’s booming tech industry, she’s developed a knack for building scalable APIs and managing server-side applications. Liina’s strength lies in real-time data handling and creating secure authentication flows, ensuring that the applications she works on are both responsive and secure.
4.5 years of experience
Mart stands out as a top-tier frontend developer, mainly focusing on the React ecosystem. His experience in crafting dynamic user interfaces for a variety of industries in Estonia is unparalleled. With a penchant for writing modular and clean code, Mart ensures that the web applications he develops are both performance-driven and visually captivating.
3.5 years of experience
Toomas is an Android development enthusiast with a focus on crafting user-centric mobile applications. His proficiency in both Kotlin and Java ensures that he can tackle projects of varying complexities. Toomas’s dedication to continuous learning and adapting to new mobile technologies has resulted in several acclaimed apps in the Google Play Store.
- Android SDK
4 years of experience
Kadri is a versatile full-stack developer with a passion for Ruby on Rails. Her balanced approach to both frontend and backend has led her to produce comprehensive web solutions for various Estonian startups. Kadri’s profound understanding of databases, coupled with her flair for frontend development, makes her a go-to developer for end-to-end application development.
- Ruby on Rails
Estonian e-Residency Program: A Global Gateway to Digital Entrepreneurship
Estonia’s e-Residency Program was a trailblazing effort that exemplifies the country’s dedication to digital innovation and good governance. The program debuted in 2014. It enables people from all around the world to become Estonian electronic residents. This approach allows people to enter the infrastructure of the nation. Consequently business owners have the opportunity to initiate and manage their ventures from any location globally.
The digital identification is an aspect of the e-residency program as it provides access to various electronic services offered by Estonia. E-Residents can easily establish and run businesses, as well as perform safe digital transactions. They can also handle internet banking, tax filing, and document signing. And you can do it all from the comfort of your own home. This program has drawn a lot of attention from location-independent entrepreneurs, freelancers, and startups. In brief, people are looking for a more efficient and cost-effective way to work in the European Union.
Estonia’s e-Residency Program has not supported the growth of the e-Residency initiative. Has also strengthened the country’s reputation as a hub for innovation. Their transparent and secure digital infrastructure serves as a blueprint for nations aiming to embrace the age. E governance seamlessly connects governance with the evolving digital landscape. Estonia’s e-Residency Program offers a glimpse into the future of citizenship, business and governance.
What Services Estonian Companies Can Offer?
Being the most connected and leader in digital transformation, Estonian is a bright spot for IT-related services with nearly five thousand IT companies. Estonia software engineering companies accommodate over 5.9% of the country’s workforce powered by over 140 affluent business angels, which contributes hugely to the country’s GDP. Therefore every software development company Estonia makes a great contribution to the national economy. The most demanded IT services in Estonia include:
- Information technology consulting services
- Research and development R&D services
- Professional IT solutions for innovative business ideas
- IT auditing and system evaluation
- Mobile application development
- Web application development
- Comprehensive eCommerce and e-government solutions
- Consulting services for startup ideas
- Blockchain technology-based robust utility service solutions
- Artificial Intelligence AI and AR/VR solutions
- Enterprise Solutions for all domains of businesses like Banking, HR, healthcare, and others
- Industrial automation and smart home solutions
- Digital payment systems
Software Development Companies in Estonia, Tallinn
Software development companies in Estonia, in Tallinn, in particular, thrive due to numerous dynamics of the country, business ecosystem, and tech-savvy manpower. Tallinn is the core location of Estonia software outsourcing services. Just in a single IT park Tehnopol in Tallinn, more than 150 IT companies are located. The city of Tartu is the second-largest hub for the IT and software companies in Estonia. According to the State of European Tech 2018 report, there are over 20,000 software developers in the country. Still, the demand for tech talent is continuously growing due to the emergence of new software companies in the marketplace.
Among thousands of IT companies, a large number of companies offer SW engineering, software consulting services to the government, startups, and privately-owned companies. But, the bulk of IT consulting and development services are provided to thousands of clients located across 130 countries in the world. The major countries for outsourcing services include the USA, UK, Switzerland, France, Germany, Canada, Sweden, Norway, and Australia, etc.
More than 60 countries are using the most robust and most comprehensive e-government solutions developed by the software companies in Estonia. Those solutions are in the use in Estonia for a long time now. Among those solutions, e-voting solutions, e-Estonia, Smart city solutions, Digital ID, e-Residency, e-Tax, e-Health, X-road, and many others are a few to name. Smart Pedestrian Crosswalk SPC and numerous Internet of Things IoT solutions developed by the innovative IT workforce in Estonia are getting traction nowadays.
Software Developer Salary in Estonia vs Ukraine and Their Capitals
We will answer the main question right now and then compare the salary indicators of an Estonia developer for hire with a Ukrainian one. Being a hub of software development and consulting services, Tallinn is running short of software developers for many years now. This pushes the Tallinn software engineer salary upward continuously. The average salary of a software developer in Tallinn, Estonia is higher than in other cities. There is another country in Eastern Europe that can provide quality software development and you will not have a lack of IT specialists there. This country is Ukraine. Due to the favorable geographical position, low cost of living, and as a consequence not high rates of software developers Ukraine has become an attractive destination for software development Estonia outsourcing.
Software engineering is the most in-demand employee role in Estonia, especially in Tallinn and Tartu areas, according to the MeetFrank information. There are more than 10,000 ICT jobs are available for hire in the country. A large number of startups and existing companies are always in the search of technical talent for hiring that increases the demand in salary from the software developers, consultants, and ICT engineers. On the other hand, Ukraine mostly offers IT talents than searches for them. If you want to find Django developers for hire, or somebody with experience in any other technologies you should compare the average costs before deciding to hire developers in Tallinn or Kyiv.
|Middle Level Developer
In any case, there are good reasons to consider hiring developers from Ukraine and from Ukrainian companies as the trend is that it will be very hard to recruit web developers in 2020. The main reason is that most UA companies offer to hire the already formed in-house team of developers of any level. Moreover, Ukraine has over 190,000 IT professionals and Ukrainian companies have direct access to this largest dev community in Europe.
Legal and Regulatory Aspects
- Hiring Process: Legal Implications in Estonia and Ukraine
Both Estonia and Ukraine have their own legal implications that businesses should consider when hiring.
In Estonia, labor relations are regulated by the Employment Contracts Act. Employers must abide by rules regarding employment contracts, working hours, minimum wages, and termination procedures.
In Ukraine, the Labor Code is the main legislation that regulates labor relations. It contains provisions that define employment contracts, working conditions, employee rights and dismissal procedures.
It is critical that you comply with the legal requirements and understand your obligations to pay Social Security contributions and taxes.
- IP Protection: Understanding the Legal Framework in Both Countries
Estonia has a strong legal system that provides for the protection of intellectual property. Copyright protection is provided automatically. Estonia is a signatory to international IP conventions and provides mechanisms to enforce IP rights through the courts.
In Ukraine, IP protection is regulated by various laws, including the Law on Copyright and Related Rights and the Law on Patents. As in Estonia, copyright protection is automatic. Ukraine is also a party to international IP conventions.
Given the complexities involved in the recruitment process and intellectual property protection, it is best to consult with local lawyers who are well versed in specific country laws.
The Benefits of Outsourcing the Hiring Process to Professionals
- Expertise and experience. Recruitment agencies clearly know how to find exactly the specialist you need.
- Wider talent pool. Professional recruiters usually have a wider network and are not limited to a single job posting.
- Saving time and money. By handing over the hiring problem to professionals, you will continue to do what is really important, without being distracted by trifles and details.
- More careful selection. Recruiters have their own mechanisms and strategies for finding and weeding out candidates. So the chance of getting the perfect candidate for your team is much higher.
Being a provider of outstaffing services to businesses worldwide, Mobilunity can easily help with any team extension providing developers and programmers of any level for hire. Here are the top benefits of hiring developers with us:
- We recruit only the best professionals and offer them to you;
- We are able to find a specialist suitable to you within the shortest time (2-4 weeks);
- Our developers already have all the necessary instruments to implement your project;
- We are always in touch because of our convenient time zone;
- We don’t have language barriers.
Hiring a Dedicated Development Team in Estonia
Weighing the advantages and disadvantages is crucial when thinking about hiring developers in Estonia. And If you want to nearshoring Estonia, you know all about it. Estonia software companies have a number of pros, at least in the cost of services. However, hiring employees in other countries certainly has a number of nuances.
For those who don’t want to go deep into the intricacies of being a junior java developer tallinn or android developer tallinn, there is Mobilunity! We specialize in hiring and providing developers in Estonia and elsewhere. We understand the intricacies of the local market and can help you navigate your recruitment process effectively. Our experience is to put you in touch with highly skilled, skilled and experienced developers for your projects. Using the IT potential and talents of world-renowned experts from Ukraine, we guarantee that you will receive the highest quality work without double payment. After all, no web development company Estonia can cover all your needs the way we do it at Mobilunity.
So, whether you decided to hire dedicated development team Latvia, Estonia, Lithuania or Ukraine never risk your money, as well as the quality of the work that you want to get. Contact us now to hire Chatbot designers: highly qualified, skilled, experienced, and dedicated to your projects! We can assure you that experts from Ukraine who are well-known worldwide for their IT potential and talents won’t let you pay twice!
Find out more about:
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Mobilunity’s Main Service Models
- Dedicated Development Teams
Our dedicated development team’s service model is our primary offering. It involves the direct management of a full-time resource by the client, while we handle all aspects of HR, accounting, and helpdesk support. With this model, clients have complete control and oversight over their dedicated team members who work exclusively on their projects.
- Consultancy Services
Our consultancy services model is designed for clients who require expertise and guidance on specific projects or areas of their business. With this model, clients directly manage a part-time resource while we take care of HR, accounting, and helpdesk support. Our experienced consultants bring industry knowledge and best practices to the table to help clients get what they want.
- Recruiting Services
Our recruiting services, also known as recruiting-as-a-service. They are tailored to meet the hiring needs of our clients. Whether you require local talent in Estonia or the best candidates from Eastern Europe, we leverage our extensive network and expertise to source and recruit top-notch professionals. We handle the end-to-end recruitment process, from candidate sourcing and screening to interviews and offer negotiations. Our successful cases include local hiring in challenging markets like Japan.
- How will the time difference between Estonia and my location affect project management?
When working with engineers in Estonia, keeping track of their time zone might complicate project management and communication. Establishing clear channels of communication and regular work hours is essential for productive teamwork. To ensure the success of your business endeavors, it is important to learn how to deal with the time difference.
- When compared to other European countries, how much do developer salaries in Estonia cost?
It’s true that it’s often less expensive to hire programmers in Estonia than it is in other Western European countries like the UK, Germany, or Sweden. Although incomes are lower in Estonia than in other countries, the quality of work is good, and the business climate is positive.
- Why should a company consider Estonia for IT staffing?
There are a number of benefits to bringing in programmers from Estonia. The country is home to a large pool of skilled IT workers, cutting-edge data centers, and a welcoming regulatory climate. The Estonian programming community has earned a reputation for excellence due to its members’ extensive knowledge, fluency in English, and creative spirit.
- Is there any additional expense to employing devs in Estonia?
While the cost of employing engineers in Estonia is competitive, additional aspects must be considered. These may include taxes, social security contributions, and the expense of establishing a legal business if you intend to directly employ them. It is recommended that you speak with local professionals to fully understand all potential charges.
- Is it easy to find remote developers in Estonia for my projects?
Yes, you can engage Estonian coders for your projects. Many Estonian engineers are receptive to remote work arrangements, and you may use platforms and talent marketplaces to discover the best individuals for your unique needs. This adaptability might be a cost-effective solution for enterprises around the world.
Hire developers in Estonia in order to receive your best solution! Boost your business performance with nearshoring in Estonia. Get closer to success – reach out to us today!
All salaries and prices mentioned within the article are approximate NET numbers based on the research done by our in-house Recruitment Team. Please use these numbers as a guide for comparison purposes only and feel free to use the contact form to inquire on the specific cost of the talent according to your vacancy requirements and chosen model of engagement.