Hiring Considerations by Country

Crucial hiring considerations when expanding globally 🌎

So you're ready to hire in new countries... but you don't know anything about labor unions in Brazil, or probation periods in Poland. And there's so much more that you don't know you need to know! 🤯

Fortunately, when you work with Remote, you don't have to worry - our team of global hiring experts have you covered.

We handle localized contracts, health checks (where applicable), benefits, payroll, and everything up to terminations so you stay compliant every step of the way.

We have also created this helpful guide with a high-level overview of unique hiring considerations at a country level. This way, there will be no surprises for your people team if you have to terminate someone in Germany, or navigate public holidays in Portugal.

If you want additional context, you can check out our Country Explorer or Help Center for more.

Important notes: We are currently piloting this guide for a few of our top countries - it is not yet reflective of the many countries Remote covers. Continue to watch this space as we expand and make improvements! Additionally, information about specific employment regulations across the many countries we cover are constantly subject to change. Our team keeps this guide regularly updated with the most recent information possible. Labor cost and other assessments (low to high) are based on a global comparison, using internal data from data from reputable third-party sources.

The information provided on this page is for informational purposes only. It is not intended as legal advice or a substitute for professional legal advice. For expert advice tailored to your specific situation, please consult with your legal counsel. Remote disclaims all liability regarding the accuracy, completeness, or reliability of the information presented on this page.

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Country

Hiring considerations

Argentina

Labor costs (compared globally): 🟢 Low

Employment complexity: 🟡 Medium

Termination complexity: 🟡 Medium

Talent concentration (software eng): Low

Time zone(s): Argentina Time Zone (ART, UTC -3)

Local workforce

  • Why hire in Argentina?: Argentina has a robust talent pool in the technology, engineering, and finance sectors. The country also has strong European cultural influence and many Argentines speak English, making it an attractive destination for companies from Europe or North America to hire in.
  • Talent hotspots: Buenos Aires, Córdoba (the "Argentine Silicon Valley"), and Rosario are the primary tech hubs in Argentina.

Costs

  • Local labor costs: Argentina is considered to have a higher cost of labor compared to other Latin American countries, but is generally cheaper compared to other major global markets.
  • Average salaries (software engineering): When leveraging our platform to calculate the cost to hire, Remote users explore offering an average salary of roughly $53,000 to $79,000 USD (base) to software engineers in Argentina. However, this can be highly variable based on seniority, skills, and experience.
  • 13th month salary: Argentines enjoy an Aguinaldo (SAC - Sueldo anual complementario), otherwise known as a 13th-month salary. This is statutory, and typically paid in two installments, one in June and one in December. Each installment must equal half of the highest monthly wage the employee received in the previous six months.
  • Overtime hours & pay: In Argentina, the workweek caps at 48 hours, typically split into 8 hours/day. Employees get a continuous 35-hour weekend break and 12-hour breaks between workdays. Overtime is limited to 30 hours/month and 200 hours/year, with a max of three hours/day. Saturday tasks must end by 1pm. Unless a collective bargaining agreement states otherwise, overtime pay is either 50% more than normal wages or 100% more if working during a holiday or rest period (Sundays).

Hiring

  • Contract terms: Remote can support indefinite agreements in Argentina. We do not recommend fixed-term contracts in Argentina as they are only permissible under exceptional circumstances, and continuous use of such contracts or in excess of legal requirements will automatically convert them into permanent labor contracts.
  • Probation periods: By law, the probation period of new permanent employees is three months.
  • Health checks required: In Argentina, health checks are mandatory before an employee can begin work (pre-employment medical exams). This is part of Remote’s onboarding process. Employees will receive guidance on how to do the health check with one of Remote's partners, in full compliance with local legal requirements. They can then easily upload their health check certificate in the Remote dashboard.
  • Onboarding with Remote: In all LATAM countries we can have new employees start on any day of the month as long as the onboarding process is complete before the 15th (or the business day prior in the case of weekends or holidays). We will need a signed employment agreement no later than the 13th in order for us to report the employee to the local PSP (payroll service provider) in time for them to start that month. Otherwise, they will need to postpone their start date until the beginning of the following month. For compliance reasons, we cannot make off-cycle payments to employees in this region, and every employee will need to be paid in the month they have started.

Time off

  • Public holidays: In Argentina, employees are entitled to a minimum of 11 public holidays per year where they are given the day off. There are also some regional public holidays that are not observed nationwide. Note: Public holidays in Argentina can change each year, and public holidays may be scheduled to create long weekends for tourism purposes.
  • Vacation time: Employees who have worked for their employer for less than six months are not entitled to full leave. Instead, they will receive one day off for every 21 days worked until they complete the six-month period (more can be granted at the employer’s discretion). Employees with zero to five years of service are entitled to 14 days of leave per year. Statutory time off increases based on their time at the company.
  • Parental leave: Employees who give birth in Argentina are entitled to 90 days of leave, paid at 100% salary by the government. They may also request additional time up to six months without pay. Paternity leave is two days, also paid at 100% salary by the government.

Termination

  • Termination: Employers in Argentina must provide written notice to terminate an employee. Reasons for termination include "just cause" for dismissal (such as serious misconduct), or without just cause, where severance pay is required. Employees have the right to challenge unfair dismissal in labor courts. Collective bargaining agreements and specific industry regulations may also influence termination procedures.
  • Notice periods: Notice periods vary based on how long the employee has worked for the company - 15 days if they are terminated during their probation period, one month for those with a tenure under five years, or two months for those with a tenure of five or more years.
  • Severance: Severance pay in Argentina depends on the tenure of the employee and conditions of dismissal. Employees terminated without cause are entitled to several forms of severance pay, including seniority pay, compensation for any remaining days in the month, compensation for unused vacation time, and more.

See more on Remote's Country Explorer: https://remote.com/country-explorer/argentina

Calculate the cost to hire an Argentine employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/argentina

Ready to onboard your employee? Sign up now.

Belarus

Labor costs (compared globally): 🟢 Low

Employment complexity:

Termination complexity:

Time zone(s): Eastern European Time Zone (EET, UTC +3)

Costs

  • Overtime hours & pay: Standard full-time work in Belarus is a 40 hour workweek with eight working hours per day. Overtime work is permitted but should not exceed 180 hours per year. Employees shouldn't work more than 12 hours a day or more than 10 additional hours per week. Overtime hours are paid at 2x the normal rate.

Hiring

  • Probation periods: The maximum employee probation period is three months.
  • Wet ink signatures: In Belarus, employment agreements require a wet ink signature, meaning the contract will be prepared in Remote but need to be exported for a signature in pen. This can cause delays, especially if contract amendments are requested. It is advised to allow for extra time in the onboarding process or when amending existing contracts (like in the event of pay increases).

Time off

  • Vacation time: Employees are entitled to 24 days of paid annual leave.
  • Parental leave: Maternity leave in Belarus is normally 126 days of paid leave. In the event where two or more children are born or with medical complications related to the delivery, this increases to 140 days. Paid paternity leave is not mandated but fathers are entitled to take 14 days of unpaid leave in the first six months after birth.

Termination

  • Termination: Employers are only permitted to terminate an employee under reasonable grounds, such as either party’s breach of the employment agreement.

See more on Remote's Country Explorer: https://remote.com/country-explorer/belarus

Calculate the cost to hire a Belarusian employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/belarus

Ready to onboard your employee? Sign up now.

Belgium

Labor costs (compared globally): 🔴 High

Employment complexity: 🟡 Medium

Termination complexity: 🟡 Medium

Talent concentration (software eng): Low

Time zone(s): Central European Time Zone (CET, UTC +1)

Local workforce & culture

  • Why hire in Belgium?: Belgium has three official languages (Dutch, French, and German), which means that many workers are proficient in multiple languages. Belgian professionals are also highly educated: ~36% of Belgian workers aged 25-64 have a tertiary education degree compared to the EU average of ~32% (Eurostat, 2020).

Costs

  • Average salaries (software engineering): When leveraging our platform to calculate the cost to hire, Remote users explore offering an average salary of roughly $64,000 to $96,000 USD (base) to software engineers in Belgium. However, this can be highly variable based on seniority, skills, and experience.
  • Minimum wage: Belgium is known to have one of the highest minimum wages in Europe, and it is reviewed by the government bi-annually.
  • Mandatory pay increases: Belgium has an "automatic wage index" which could require you to increase your employee's wages throughout their employment. When the prices of goods and services go up in Belgium (particularly during periods of inflation), employers are required to increase employee salaries in tandem. For example: Between Jan. 2022 - Jan. 2023, employers were required to increase salaries between +/- 9 and 10%.
  • 13th month salary: Employers must pay an additional 13th month salary with the December salary payment. This is only mandatory for employees that have been employed by the company for at least half a year, but it is relatively common for employers to decide to pay the 13 month payment to everyone regardless.
  • Social security: The employer’s contribution is notably high in Belgium. (Calculate the cost to hire)

Hiring

  • Contract types: Belgian law makes a distinction between different types of employment agreements based on the type of work performed. Different agreements exist for blue-collar workers, white-collar workers, employees who are students, and sales representatives.
  • Contract terms: Fixed-term agreements are only allowed if justified by the nature of the job or other legitimate reasons. The employment agreement will be deemed as permanent if the employer has no legitimate reason for offering it as fixed-term. It is possible to offer four fixed-term agreements if the combined duration does not exceed two years.

Time off

  • Public holidays: Belgium has 10 public holidays where employees get the day off.
  • Vacation time: Employees are entitled to 20 days if they work five days a week and 24 days if they work six days a week.
  • Parental leave: Maternity leave is 15 weeks long (two extra weeks for twins). Paternity leave is 15 days that can be taken continuously or separately.

Termination:

  • Termination: Terminations are only considered lawful when they are due to factors regarding employee capability or an employer’s need to retain an employee's services. The notice period required to terminate an employee depends on the length of their tenure - i.e. less than three months of employment = two weeks notice; 48 to 60 months of employment = 15 weeks notice.

See more on Remote's Country Explorer: https://remote.com/country-explorer/belgium

Calculate the cost to hire a Belgian employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/belgium

Ready to onboard your employee? Sign up now.

Bolivia

Labor costs (compared globally): 🟢 Low

Employment complexity:

Termination complexity:

Time zone(s): Bolivia Time Zone (BOT, UTC -4)

Hiring

  • Wet ink signatures: In Bolivia, employment agreements require a wet ink signature, meaning the contract will be prepared in Remote but need to be exported for a signature in pen. This can cause delays, especially if contract amendments are requested. It is advised to allow for extra time in the onboarding process or when amending existing contracts (like in the event of pay increases).
  • Onboarding with Remote: In all LATAM countries we can have new employees start on any day of the month as long as the onboarding process is complete before the 15th (or the business day prior in the case of weekends or holidays). We will need a signed employment agreement no later than the 13th in order for us to report the employee to the local PSP (payroll service provider) in time for them to start that month. Otherwise, they will need to postpone their start date until the beginning of the following month. For compliance reasons, we cannot make off-cycle payments to employees in this region, and every employee will need to be paid in the month they have started.

Brazil

Labor costs (compared globally): 🟡 Medium

Employment complexity: 🔴 High

Termination complexity: 🔴 High

Talent concentration (software eng): 📈 High

Time zone(s): Brasília Time Zone (BRT, UTC -3) and Amazon Time Zone (AMT, UTC -4)

Local workforce

  • Why hire in Brazil?: Brazil has a large and skilled workforce, with a growing number of people holding advanced degrees in fields such as engineering, science, and technology. Brazil has a large talent pool for roles like backend engineers.

Costs

  • Local labor costs: Brazil has higher labor costs on average than other Latin American markets like Colombia, but is competitive compared to other major markets globally.
  • Average salaries (software engineering): Remote users offer software engineers in Brazil average salaries between $63,000 - $94,000 USD. However, this can be highly variable based on seniority, skills, and experience. (Sign up to use our free in-product Compensation Explorer tool.)
  • 13th month salary: In Brazil, employees are entitled to a “13th month salary,” which is essentially a required bonus in an amount equal to one months salary. A pro-rated 13th-month salary is also due upon termination. This is legally mandated benefit and not part of the base salary. During negotiations with candidates, it is important to clearly state what salary amount is being offered and whether or not it is inclusive of the 13th-month payment.
  • Employer taxes: Employer taxes in Brazil are notably high as there are a variety of social programs the government requires employers to pay into. (Calculate the cost to hire)
  • Mandatory pay increases: In Brazil, it is mandatory to offer pay increases in Q1 of each year based on CBA (collective bargaining agreement) guidelines. Standard practice is to avoid offering raises before the CBA has announced the annual increase.
  • Vacation premiums: According to Brazilian labor law, if an employee does not take their full vacation time within the specified timeframe, the employer is obligated to pay them a double vacation premium (see more below under "Time off").

Unions

  • Unions in Brazil: Unions in Brazil represent all employees in a given professional category and a respective territory, which may be a city, a region, or a state. Representation is automatic and applies to all employees that fall under the given professional category and territory.
  • Collective bargaining (CBA) benefits: Meal vouchers, grocery cards, life insurance, childcare allowance, profit sharing, transportation benefits, dental assistance, disabled child aid, and health insurance benefits are all MANDATORY benefits for eligible employees in Brazil based on the terms of the union/collective bargaining agreement (CBA) that Remote works with. Some other CBA benefits are only required for employees in certain circumstances. Remote abides by the CBA rules for the worker’s union known as SINDEEPRES. (See all the benefits Remote offers in Brazil.)

Hiring

  • Contract terms: Remote can offer indefinite contracts in Brazil (this is the most common practice).
  • Probation periods: The maximum probationary period allowed in Brazil is 90 days (two terms of 45 days). If the initial trial period is 45 days, it may be renewed but only for an additional term of 45 days. The probation period can be interpreted as a fixed-term contract, however, the agreement automatically becomes an indefinite contract after the probation period ends.
  • Essential benefits: According to Remote's Global Benefits Report, the most essential benefits for employees in Brazil are paid holidays (84%) and sick leave (79%). There is also a strong demand for parental leave policies (72%). (Download the report to find out more.)
  • Localized contracts: Employment contracts in Brazil must be drafted in Portuguese. Remote can help manage this process.
  • Expat contract approval: Employment of expats requires the approval of the Brazilian labor department.
  • Health checks required: In Brazil, health checks are required before an employee can begin work. This is part of Remote’s onboarding process, and we handle this for your team. Employees will receive guidance on how to do the health check with one of Remote's partners, and they can easily upload a health check certificate in their Remote dashboard.
  • Onboarding with Remote: In all LATAM countries we can have new employees start on any day of the month as long as the onboarding process is complete before the 15th (or the business day prior in the case of weekends or holidays). We will need a signed employment agreement no later than the 13th in order for us to report the employee to the local PSP (payroll service provider) in time for them to start that month. Otherwise, they will need to postpone their start date until the beginning of the following month. For compliance reasons, we cannot make off-cycle payments to employees in this region, and every employee will need to be paid in the month they have started.
  • Equipment: Tech equipment (such as laptops) are very expensive to purchase in Brazil compared to other countries. If an employee requires a laptop or similar items, best practice is to ship them to the employee from abroad - it should be clearly stated that it is "company property" and that they will need to return it after their employment ends.

Time off:

  • Public holidays: Brazil has nine public holidays where employees get the day off. Some employees may be entitled to more public holidays depending on their work location. In addition to official holidays, Brazil observes election days as national holidays.
  • Vacation time: Employees in Brazil are entitled to 30 calendar days of vacation per year after every 12 months of work, and must be paid 1/3rd of a month’s salary as a vacation bonus.
  • Sick time: For sick days, if the employee provides a medical note, the first 15 days of absence must be paid by the employer.
  • Parental leave: Pregnant employees are entitled to four months of maternity leave and may not be dismissed during pregnancy or during the 12 months after birth. Men are entitled to five days of paid paternity leave, which they must request in advance.

Termination

  • Termination: When the employer decides to terminate the employment, the statutory notice period depends on the duration of employment - for the first year, the notice period is 30 days; for every year after the first year, the notice period increases by three days, up to a total maximum of 90 days. Holiday pay and holiday bonus payments are due pro-rated upon termination. Employees must also give notice of 30 days to terminate their employment.
  • Severance: While severance pay is not required in all cases, severance is typically one month of pay for every year the person has worked for the company.

Culture

  • Relationships matter: Brazilian professionals typically value building personal relationships before getting down to business. This personal touch goes a long way in establishing trust and respect.
  • Hierarchy: Brazilian businesses tend to have very hierarchical structures. Decisions are generally made by the highest-ranking person and lower-ranking employees often wait for approvals before taking action.
  • Communication styles: Brazilians are known for having an open and animated communication style. They often use body language and physical contact during conversations.
  • Punctuality: Brazilian culture is more relaxed when it comes to time. It's common for meetings to start late and last longer than scheduled.
  • Formality: While generally informal, Brazilians do value respect and politeness in business settings. When addressing someone, it's customary to use their title and surname until invited to do otherwise.
  • Work-life balance: Brazilians generally value a healthy work-life balance. While they can work very hard, they also know the importance of relaxation and socializing. Companies that acknowledge this balance are often more attractive to Brazilian employees.
  • Note: These are generalizations and individual experiences can vary widely. It's important to approach each interaction with openness and respect for individual differences.

See more on Remote's Country Explorer: https://remote.com/country-explorer/brazil

Calculate the cost to hire a Brazilian employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/brazil

Ready to onboard your employee? Sign up now.

Colombia

Labor costs (compared globally): 🟢 Low

Employment complexity: 🟢 Low

Termination complexity: 🔴 High

Talent concentration (software eng): Low

Time zone(s): Colombia Standard Time (COT, UTC -5)

Local workforce

  • Why hire in Colombia?: Colombia's rapidly growing tech industry, government support for innovation, and English-speaking talent pool make it an emerging location for hiring tech talent. The cost of labor in Colombia is also generally more competitive compared to North America and Western Europe. The country's time zone alignment with the U.S. also helps facilitate better synchronous collaboration.
  • Talent hotspots: Bogotá, the capital, is the country's main economic center and an emerging global tech hub. Medellín, called the "Silicon Valley of South America," is recognized for its culture, thriving tech scene, and large expat community. Cali and Barranquilla are also growing hotspots.

Costs

  • Labor costs: Hiring tech talent in Colombia is significantly more affordable than in the U.S. and Western Europe, offering cost savings of up to 40-60% on average. Colombia is also competitive compared to other LATAM markets, with labor costs generally in line with (if not lower than) countries like Mexico and Argentina.
  • Average salaries (software engineers): Users on the Remote platform pay software engineers in Colombia an average of $26,000 - $60,000 USD (base). However, this can be highly variable based on seniority, skills, and experience. (Use Remote's Compensation Explorer for free in our platform to see average salaries around the world.)
  • 13th-month salary: Employees in Colombia who are earning an "Ordinary Salary" (less than $15,080,000 COP per year) are entitled to receive an extra month’s pay each year, split between two payments: one in June and one in December. Note that the 13th salary should not be included in the total annual gross salary. Employees who earn a gross salary of $15,080,000 COP per year or more do not receive a 13th salary payment.
  • Working hours & overtime: In accordance with new legislation, maximum weekly work hours will be reduced according to the following annual schedule: July 15, 2023 > 47; July 15, 2024 > 46; July 15, 2025 > 44; July 15, 2026 > 42. Generally, employees in Colombia are limited to normal working hours. However, there are exceptions for those who hold positions of leadership or management, who work in domestic services, or those who have intermittent work schedules. In these cases, overtime is limited to two hours per day and 12 hours per week. Employees are entitled to overtime pay of 25% extra during the day and 75% at night. If employees work on Sunday or during a public holiday, they are entitled to 75% overtime pay.

Hiring

  • Contract terms: Remote can offer indefinite contracts in Colombia. Fixed-term contracts can be offered for a maximum of three years, however, we recommend one year to avoid renewal issues.
  • Probation periods: Maximum of two months for indefinite contracts or fixed term contracts between 1-3 years. For fixed term contracts less than one year, the probationary period must be less than one-fifth of the agreed term (with a cap of two months).
  • Health insurance: Colombia’s healthcare system has a reputation for high-quality care, particularly within larger cities. The country has a robust public system, making healthcare costs generally affordable. Remote offers local health insurance packages in Colombia to provide employees with wider options for care and shorter wait times. (See Remote's local benefits plans in Colombia)

Time off

  • Public holidays: Colombia recognizes 18 national holidays, which are paid days off.
  • Vacation time: All full-time employees are entitled to 15 consecutive working days of paid annual leave.
  • Parental leave: Pregnant employees in Colombia receive 18 weeks of maternity leave, typically beginning one week before the child’s due date, paid at 100% their standard salary. Fathers receive 14 days of paid paternity leave. Employers must pay for parental leave upfront but receive a refund from the government later.
  • Right to disconnect: In 2022, Colombian Congress issued a new law promoting labor disconnection for employees. This right begins once the employee's workday is over. According to the act, disconnection is defined as “the right of all workers and public servants to have no contact, by any means or tool, whether technological or not, for matters related to their field or work activity, at times outside the ordinary working day or maximum legal working day, or agreed, or during their holidays or breaks.” Employers should refrain from issuing orders or other requirements to employees outside their standard working hours, with some exceptions.

Termination

  • Termination: An employment contract may be terminated by either of the parties or by mutual consent of both parties. Termination of employment with just cause must be handled with care. For every dismissal, there is a high risk of facing a labor lawsuit. The employer must have evidence to demonstrate the just cause and all the documents necessary to support it in the event of a judicial claim. Therefore, it is highly recommended to terminate labor contracts by mutual consent of both parties, formalizing it before labor authorities. The employer will most likely need to pay a settlement bonus in exchange for the employee’s signature on the document, which waives the possibility of future claims.
  • Notice periods: The statutory notice period in Colombia depends on the context of the termination. Notice is not required if an employee is terminated for misconduct. For employees on a fixed-term contract, written notice must be sent to the employee 30 days before the contract expires. For employees on indefinite contracts, 15 days notice must be given if the employee is dismissed for poor performance. In these cases, the employee can respond to the termination within 24 hours to challenge the decision.
  • Severance: In Colombia, the amount of severance depends on the nature of termination, the salary of the employee, and the type of agreement. For fixed-term agreements, the severance must be the balance of salary due to the employee up to the last date of the agreement. In the case of an indefinite agreement, severance is dependent on the length of service and salary amount. Employees earning less than COP$9,085,260 (10 times the monthly minimum wage) receive 30 days’ salary for the first year of employment and 20 days’ salary for each additional year. Employees who earn more than 10 times the monthly minimum wage receive 20 days’ salary after one year and 15 days’ salary for every additional year with the company. Employers must pay the severance no later than February 14th of the following year.

Culture

  • Communication styles: Colombian culture values politeness and indirect communication to maintain harmony and respect. Be mindful of this when giving feedback or addressing sensitive issues.
  • Hierarchy: Colombian businesses typically have a clear hierarchical structure. Understanding and respecting this hierarchy is important in business interactions.
  • Work-life balance: Colombia has been making strides towards achieving a better work-life balance, with labor laws establishing a maximum of 47 working hours per week for 2023 (with the maximum reducing incrementally each year) and protecting the right to disconnect from work communications after hours.
  • Note: These are generalizations and individual experiences can vary widely. It's important to approach each interaction with openness and respect for individual differences.

See more on Remote's Country Explorer: https://remote.com/country-explorer/colombia

Calculate the cost to hire a Colombian employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/colombia

Ready to onboard your employee? Sign up now.

French flag

France

Labor costs (compared globally): 🔴 High

Employment complexity: 🔴 High

Termination complexity: 🔴 High

Talent concentration (software eng): Medium

Time zone(s): Central European Time Zone (CET, UTC +1)

Local workforce

  • Why hire in France?: France has a large pool of talented professionals, particularly in tech, creative industries, and advanced manufacturing. The French workforce is highly educated, with a strong emphasis on technical skills and qualifications. As a member of the EU, France also provides a predictable legal and regulatory environment, along with access to the single market. The country has a high quality of life and excellent social services, making it an attractive location for top talent.
  • Talent hotspots: France's capital, Paris, is a global hub for tech, fashion, and culture, making it a major draw for French talent and expats alike. Other major cities like Lyon, Bordeaux, and Nice are also popular for their quality of life and thriving local economies.

Costs

  • Labor costs: France's labor costs are relatively high due to substantial social contributions, which add about 40-45% to the gross salary. These contributions fund benefits such as comprehensive healthcare and robust unemployment protections, contributing to employee well-being and potentially reducing turnover. However, tech salaries are lower than many Western countries: about 30-50% lower than the U.S., 15-20% lower than the U.K., and slightly lower (5-10%) than Germany. They are typically higher than in Southern and Eastern Europe. (Note: These figures represent a rough approximation based on a collection of external sources.)
  • Average salaries (software engineering): When leveraging our platform to calculate the cost to hire, Remote users explore offering an average salary of roughly $80,000 to $121,000 USD (base) to software engineers in France. However, this can be highly variable based on seniority, skills, and experience.
  • Working hours & overtime: In France, the standard full-time work week is 35 hours, with any extra hours considered as overtime and paid at higher rates. Specifically, the first eight extra hours are paid at 125% of the basic rate, and any beyond that at 150%. Daily work is capped at 10 hours, potentially extendable to 12. Rest periods must be at least 11 consecutive hours per day, and Sunday work is prohibited. Different contracts (such as 38.5-hour contracts or lump-sum contracts) will have different overtime requirements.
  • Costs of home working: If an employee in France is working from home permanently, their employer is required to cover certain costs. This includes an allowance for the inconvenience of not having a physical office to go to, as well as a separate allowance to cover the costs of using their home as an office. The latter allowance is tax-free up to 50 EUR per month.

Hiring

  • Contract terms: Remote can support indefinite agreements in France. We cannot support fixed-term agreements.
  • Probation periods: In France, probation periods vary by role: two months for blue-collar and white-collar employees, three for supervisors/technicians, and four for executive staff. Probation can be extended once with employee consent, with total duration not exceeding four, six, or eight months respectively. Absence due to approved leave extends the probation period.
  • Health insurance: In France, it's mandatory for all residents to have health insurance. While the public system is comprehensive, supplemental insurance offers broader provider options and shorter wait times. Remote's plans also provide global coverage, excluding the U.S., for employees traveling abroad. (See Remote's local benefits plans in France)

Time off

  • Public holidays: France has 11 public holidays where employees get the day off. Certain regions may observe additional local holidays.
  • Vacation time: All full-time employees are legally entitled to 25 days paid holiday leave a year. The minimum amount of annual leave is five weeks.
  • Parental leave: The length of maternity leave in France depends on the number of children of the mother: for births bringing mother's number of children to one or two it is 16 weeks, broken down into six weeks before childbirth and 10 weeks after.

Termination

  • Termination: Terminating employment in France can be complex due to very strong employee protections. When hiring with Remote, there are a few options available: Termination by mutual consent through a mutual termination agreement; employee resignation with written notice, following the required notice period as per employment agreement; dismissal for personal reasons, e.g. poor performance or misconduct; dismissal during the probation period (this is limited to poor performance).
  • Not possible: Dismissal for economic reasons is not possible when hiring through Remote EOR given that Remote is the employer.
  • Notice periods: For employment duration between 6 months and 2 years: 1 month; for employment duration over 2 years: 2 months; for executives: 3 months.
  • Severance: Severance payment is mandatory in most cases if the employee has at least one year of service. The amount varies based on the employee's age, salary, and length of service.

Culture

  • Communication styles: French business culture is more formal than in some other countries. Written communication is typically formal, and meetings often follow a set agenda. However, the French appreciate good debates and discussions, so don't be surprised if a meeting deviates from the agenda. French professionals tend to be direct and honest in their communication, but they also value diplomacy and tact.
  • Hierarchy: French companies typically have a clear hierarchical structure, and decision-making often flows from the top down. Therefore, understanding where an employee fits into this hierarchy is important.
  • Relationship building: Personal relationships and trust play a significant role in French business culture. Networking, face-to-face meetings, and socializing are often key parts of the business process.
  • Work schedules: The French workday typically begins at 9:00 am and ends at 6:00 pm, with a long lunch break in between. It's not uncommon for French professionals to take more than an hour for lunch, a time seen as a crucial opportunity to build relationships with colleagues.
  • Work-life balance: France is known for its emphasis on work-life balance, with labor laws protecting personal time. Key elements include a 35-hour work week, the "right to disconnect" from work communications after hours, and ample vacation time. These contribute to a culture that equally values personal life and professional success.
  • Note: These are generalizations and individual experiences can vary widely. It's important to approach each interaction with openness and respect for individual differences.

See more on Remote's Country Explorer: https://remote.com/country-explorer/france

Calculate the cost to hire a French employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/france

Ready to onboard your employee? Sign up now.

Germany

Labor costs (compared globally): 🔴 High

Employment complexity: 🟡 Medium

Termination complexity: 🔴 High

Talent concentration (software eng): 📈 High

Time zone(s): Central European Time Zone (CET, UTC +1)

Local workforce

  • Why hire in Germany?: With its highly skilled workforce, strong economy, and role as a hub of innovation globally, Germany is an attractive location for hiring talent. It has a well-established and growing tech ecosystem, supported by excellent educational systems and a vibrant startup scene. It boasts a robust talent pool for in-demand roles such as backend engineers, data scientists, and other critical positions within the tech sector. Germany's central European location also offers strategic advantages for companies looking to expand within the region.

Costs

  • Labor costs: While wages in Germany are relatively high compared to some other countries, they are competitive with other major European economies. Salaries for tech talent are generally lower than salaries in the U.S., partly due to lower healthcare and benefits costs. The cost of hiring in Germany is more comparable to that of the UK, but tends to be slightly lower thanks to a lower cost of living than in major cities like London. However, hiring costs in Germany are higher than in many Eastern European countries, reflecting the country's strong economy and higher standards of living.
  • Average salaries (software engineering): The average base salary for a senior backend engineer in Germany is $100,842 USD. (See more in our Where to Hire Report.)
  • Overtime hours & pay: In Germany, the typical workweek is 40 hours, with 8-hour workdays that should not exceed 10 hours. There are no statutory minimums for overtime, with its conditions usually agreed upon in the employment contract or the relevant collective bargaining agreement. Overtime provisions are subject to "General Terms and Conditions review," meaning they must be transparent and reasonable. Overtime pay rates are also agreed upon in the contract or collective agreement, with no specific statutory rate. It's noteworthy that business travel outside regular working hours counts as working time. While there could be contrary provisions in contracts or CBAs, German court practice typically considers necessary travel in the employer's interest as working time.

Hiring

  • Contract terms: Remote can offer both indefinite and fixed-term employment agreements. Unlike many other EORs, Remote is not limited to 18-month contracts in Germany.
  • Wet ink signatures: In Germany, employment agreements require a wet ink signature, meaning the contract will be prepared in Remote but need to be exported for a signature in pen. This can cause delays, especially if contract amendments are requested. It is advised to allow for extra time in the onboarding process or when amending existing contracts (like in the event of pay increases).
  • Probation periods: The maximum length of a probationary period is six months. During this period, the applicable statutory notice period can be reduced to a minimum of two weeks (unless there is conflict with other regulations, e.g. a collective bargaining agreement), and the employer does not need a reason for termination to dismiss the employee.
  • Non-competes: In Germany, enforcing a non-compete restriction post-termination is only possible if the employer agrees to pay at least 50% of the employee’s total compensation for the duration of the restriction. The employer can choose not to enforce the non-compete at any point while the employee is working for the employer, but the obligation to pay the compensation for the non-compete will only expire after 12 months.
  • Visas & immigration: Depending on your employee's situation, Remote may be able to sponsor their visa application in Germany. (Find out more about Remote Relocation.)

Time off

  • Public holidays: Germany has eight public holidays where employees get the day off. Some employees may be entitled to more public holidays depending on their work location.
  • Vacation time: Full-time employees are entitled to at least 20 days of paid time off if they work five-day work weeks or 24 days of paid time off if they work six-day work weeks.
  • Parental leave: Pregnant employees are entitled to six weeks of pregnancy leave (before the due date) and at least eight weeks of maternity leave (after childbirth).
  • Extended parental leave: Parents can also take extended parental leave for up to 36 months until the child turns three. Parents can choose to work part-time or up to 30 hours per week during parental leave.

Termination

  • Termination: When terminating an employee that has been employed for longer than six months, there must be "social justification" such as termination with the consent of the employee or conduct-related reasons (such as breaches of employment terms or serious misconduct). Client operational reasons may not be used when hiring with Remote, as Remote remains the employer. In Germany, common practice is a freely negotiated mutual termination. This is due to the limited grounds for termination and high threshold for misconduct-related justification.
  • Notice periods: The statutory notice period depends on the duration of employment, with a minimum of four weeks for those employed less than nine months and up to seven months for those employed more than 20 years.

Culture

  • Punctuality: Germans are known for their punctuality. Being late for an appointment or a meeting can be considered rude or unprofessional.
  • Communication styles: German professionals are known for their direct and straightforward communication. While this might be perceived as blunt or harsh to people from cultures with a more indirect communication style, it's seen as clear and efficient in Germany.
  • Formality: The work environment in Germany is often more formal than in other countries. Titles are important, and in more corporate settings it is common to use the person's title and surname until invited to use the first name.
  • Task-oriented work styles: German professionals tend to be very task-oriented with a preference for clear instructions and procedures. They put a lot of emphasis on precision and details.
  • Work-life balance: Germans typically try maintain a strong separation between their work and personal lives. It is uncommon to discuss personal matters in the workplace.
  • Hierarchy: While companies are often structured in a hierarchical manner, it's important to note that every team member's input is valued.
  • Meetings: Meetings are typically well-planned, strictly followed, and detailed. Active participation is expected, and open discussions are common, with the aim of reaching a consensus.
  • Note: These are generalizations and individual experiences can vary widely. It's important to approach each interaction with openness and respect for individual differences.

See more on Remote's Country Explorer: https://remote.com/country-explorer/germany

Calculate the cost to hire a German employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/germany

Ready to onboard your employee? Sign up now.

India

Labor costs (compared globally): 🟢 Low

Employment complexity: 🟢 Low

Termination complexity: 🟡 Medium

Talent concentration (software eng): 📈 High

Time zone(s): Indian Standard Time (IST, UTC +5:30)

Local workforce

  • Why hire in India?: India is a premier destination for hiring talent, largely due to its emphasis on cost efficiency and high availability of skilled professionals. With a robust STEM education system and significant English-speaking population, many Indian professionals are able to integrate seamlessly into global teams. Additionally, the time difference from Western countries can be leveraged to offer continuous development cycles and round-the-clock customer service.
  • Talent hotspots: India's talent hotspots include Bengaluru, Hyderabad, Pune, Chennai, NCR (Delhi-National Capital Region), and Mumbai. These cities are known for their thriving tech and business ecosystems.

Costs

  • Average salaries (web engineering): The average base salary for a senior web engineer in India is $45,393 USD. (See more in our Where to Hire Report.)
  • Minimum wages: India has varying minimum wage rates based on industry, occupation, region, and categories of employee (from “unskilled” to “highly skilled”). The minimum wage is generally considered low to fair by global standards.
  • Working hours & overtime: Working hours for employees in India are typically capped at 48 hours per week. If an employee works beyond this limit, it is considered overtime - usually calculated at 2x the normal hourly rate.

Hiring

  • Background checks: Employers are required to conduct background checks on potential employees to verify qualifications and previous employment, with proper consent from candidates.
  • Health insurance: As of 2020, it is required by law for employers to offer health insurance. (See Remote's local benefits plans in India)
  • Essential benefits: According to Remote's Global Benefits Report, the most essential benefits for employees in India are sick leave (79%) and annual bonuses (78%). (Download the report to find out more.)
  • Common probation periods: There is no legal stipulation for minimum and maximum probation periods. However, as a matter of trade practice, probation periods in India usually range from two to six months.

Time off

  • Public holidays: India has three national holidays where employees get the day off. Additional public holidays may apply based on state laws.
  • Vacation time: Full-time employees in India are entitled to 15 days of holiday leave per year.
  • Parental leave: Pregnant employees are entitled to 26 weeks of paid maternity leave for their first two children.
  • Casual leave: This is a unique leave provision common in India provided for urgent and unexpected matters. Companies often have a limitation of three days of casual leave per month and a total of six per year. Lapses automatically expire at end of year if unused.

Culture

  • Importance of family: Family is paramount in Indian culture and often influences professional commitments. Employers need to respect this value and its implications, such as employees' availability during family events, emergencies, or holidays.
  • Hierarchy: Indian corporate culture is very influenced by hierarchical structures. Seniority based on age, position, and experience is highly respected. Decisions are typically made by the highest-ranking person and sometimes without much consultation. This deference to authority can influence communication, with employees sometimes hesitating to voice dissenting opinions.
  • Communication styles: Indian professionals tend to be polite and often indirect in their communication. A direct 'No' might be viewed as impolite, so instead, they might say 'I will try' or 'Possibly.' It's essential to understand these subtleties to interpret the true meaning behind these expressions.
  • Criticism and feedback: Maintaining dignity and respect in all interactions is seen as essential in India. Public criticism is often avoided to prevent causing embarrassment. Feedback is typically given in private and delivered tactfully.
  • Relationships matter: Building personal relationships is crucial to successful business interactions in India. Many Indian professionals prefer to work with people they know and trust.
  • Note: These are generalizations and individual experiences can vary widely. It's important to approach each interaction with openness and respect for individual differences.

See more on Remote's Country Explorer: https://remote.com/country-explorer/india

Calculate the cost to hire an Indian employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/india

Ready to onboard your employee? Sign up now.

Indonesia

Labor costs (compared globally): 🟢 Low

Employment complexity: 🟡 Medium

Termination complexity: 🟡 Medium

Talent concentration (software eng): Medium

Time zone(s): Western Indonesia Time Zone (WIB, UTC +7) and Central Indonesia Time Zone (WITA, UTC +8)

Costs

  • Labor costs: Indonesia has relatively low labor costs compared to many other countries. While the minimum wage in the country is quite low, skilled workers (particularly in the tech sector) typically earn much more. When looking at the APAC region, costs are significantly lower than in Japan or Singapore, and about on par with markets like Thailand and the Philippines.
  • Average salaries (software engineering): The average salary for a software engineer in Indonesia is around IDR 10-20 million (approximately 700 to 1,400 USD) per month, while a senior software engineer or a manager can earn IDR 40-70 million (approximately 2,800 to 4,900 USD) or more per month. (Note: These figures represent a rough approximation based on a collection of external sources.)

Hiring

  • Wet ink signatures: In Indonesia, employment agreements require a wet ink signature, meaning the contract will be prepared in Remote but need to be exported for a signature in pen. This can cause delays, especially if contract amendments are requested. It is advised to allow for extra time in the onboarding process or when amending existing contracts (like in the event of pay increases).
  • Probation periods: Probation periods cannot exceed three months and can only be set for employees on indefinite-term contracts.

Time off

  • Public holidays: Indonesia has 16 public holidays where employees get the day off. Employees who are expected to a work on a public holiday are entitled to increased compensation depending on how many hours they work (up to 400% of hourly wages).
  • Vacation time: Employees who have worked for an employer for at least 12 months consecutively are entitled to 12 days of paid annual leave.
  • Unlimited sick leave: Indonesian employees are entitled to essentially unlimited sick leave that extends until an employee has fully recovered or the term of the employment contract ends. They are entitled to 100% of their wages for the first four months, 75%of their wages for the next four months, 50% of their wages for the subsequent four months, and 25% of their normal wages for the remaining period until they recover.
  • Parental leave: Pregnant employees are entitled to three months of paid maternity leave, with 1.5 months before the birth and 1.5 months after the birth. Their partner can take two days off after the delivery.

Termination

  • Termination: Under Indonesian labor law, employers can only terminate an employee with a valid reason as stipulated under the law. This includes reasons such as a change of status for the employer company - such as a merger, change in ownership, or bankruptcy. Employees can also be terminated based on violation of provision(s) under the employment agreement.
  • Notice period: No notice period is required by law, but 30 days notice is the norm.
  • Severance: Employees are entitled to severance pay based on the length of their tenure. Severance requirements range from one months wages (for employees working less than one year) to nine months wages (for eight or more years of employment).

Culture

  • Hierarchy: Indonesian business culture is very hierarchical. Age, position, and experience are highly respected. Decisions are typically made by the most senior person.
  • Communication styles: Indonesian professionals can sometimes communicate in an indirect manner to avoid conflict and maintain harmony. It's essential to read between the lines and interpret non-verbal cues.
  • Relationships matter: Indonesians place great value on personal relationships. Building trust and respect is often a prerequisite for successful business dealings.
  • Meetings: It is common for meetings to start late, and they often begin with small talk to build rapport.
  • Note: These are generalizations and individual experiences can vary widely. It's important to approach each interaction with openness and respect for individual differences.

See more on Remote's Country Explorer: https://remote.com/country-explorer/indonesia

Calculate the cost to hire an Indonesian employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/indonesia

Ready to onboard your employee? Sign up now.

Mexico

Labor costs (compared globally): 🟢 Low

Employment complexity: 🟡 Medium

Termination complexity: 🟢 Low

Talent concentration (software eng): Medium

Time zone(s): Pacific Standard Time (PST, UTC -8), Mountain Standard Time (MST, UTC -7), Central Standard Time (CST, UTC -6), Eastern Standard Time (EST, UTC -5)

Local workforce

  • Why hire in Mexico?: Mexico offers a diverse and vibrant talent pool. The country has made significant investments in education with a focus on technology and engineering and has a growing tech scene. Additionally, its close proximity and shared time zones with the U.S. facilitates smoother cross-border collaboration.
  • Talent hotspots: Mexico City, as the capital and largest city in the country, is a hub for both tech startups and multinational corporations. Guadalajara, described as the "Silicon Valley of Mexico," is known for its tech and creative industries. Monterrey is another growing hotspot.

Costs

  • Labor costs: Hiring tech professionals in Mexico is generally more cost-effective than in the rest of North America and Western Europe. When comparing within the LATAM region, Mexico's tech salaries are competitive, often comparable to countries like Argentina and Colombia but lower than higher-cost markets like Brazil. However, these figures can vary widely depending on factors related to industry and the skills and experience of individual employees.
  • Average salaries (software engineers): Users on the Remote platform pay software engineers in Mexico an average of $44,000 - $107,000 USD (base). However, this can be highly variable based on seniority, skills, and experience. (Use Remote's Compensation Explorer for free in our platform to see average salaries around the world.)
  • 13th month salary: Employees are entitled to Aguinaldo (Christmas bonus/13th payment). Aguinaldo totals 15 working days pay (including total earnings + taxable allowances + commissions) and must be paid by December 20th. Employees with less than one year of service will get a pro-rated amount.
  • Vacation bonus: Employees are entitled to Prima (vacation premium), which is payable on the anniversary of their employment. It is based on the employee's number of vacation days and is calculated as a minimum of 25 percent of the salary, added to the daily pay rate for those vacation days (employers can choose to offer more).
  • Working hours & overtime: The average workweek for professionals in Mexico is 40 - 45 hours with a cap of 48 hours per week before overtime. Overtime must be paid at 2x the hourly rate. Overtime that extends beyond 9-hours per week is paid at 3x.

Hiring

  • Contract terms: Remote can only offer indefinite contracts in Mexico.
  • Probation periods: In Mexico, the trial period may not exceed 30 days. The trial period may be extended up to 180 days only in the case of workers in management, managerial positions, or those individuals performing management or administrative functions of a technical or professional nature.
  • Health insurance: In Mexico, 90%* of employers offer some level of supplemental medical coverage to their employees. Although Mexico has a public health system, supplemental health insurance provides employees with access to a wider range of options for providers and specialists, as well as significantly shorter wait times. At Remote, our plans also offer global coverage (excluding the US) to protect your employees when they are traveling outside their home country.
  • Other insurance: Life and accident insurance is also offered by 90%* of employers in Mexico. (*Based on data from our third-party partners) (See Remote's local benefits plans in Mexico)

Time off

  • Public holidays: Mexico recognizes seven national holidays, which are paid days off.
  • Vacation time: The amount of vacation days an employee is entitled to is dependent on the employee's length of service, i.e. 12 days for one year of service; 14 days for two years; 16 days for three years; etc.
  • Parental leave: Pregnant employees can take up to 12 weeks of paid maternity leave of absence. Six weeks can be taken before the birth and six weeks after. On the request of the mother and with authorization by the Mexican Social Security Institute (IMSS), up to four of the first six weeks can be moved to after the birth. Mothers are also entitled to additional rest breaks in the six months after the birth (the nursing period). Employees are also entitled to five working days of paid paternity leave.

Termination

  • Termination and dismissal: Federal Labor Law provides a distinction between dismissal (Spanish: despido) and termination (Spanish: terminación). Dismissal can be justified by reasons related to the employee's conduct, while termination can be for economic reasons, employee's incapacity, force majeur, death of the employee or termination of the work.
  • Just causes for termination: Just causes for termination include mutual consent from both parties; a physical or mental disability of the employee that makes it impossible for them to continue with their job; or employee misconduct.
  • Notice periods: There is no legal obligation for either employers or employees to notify the other party in advance of a dismissal or resignation. This is only enforceable if previously agreed to by both parties.
  • Severance: For employees terminated without "just cause," severance includes three months of salary, calculated based on a daily aggregated salary; 20 days of salary per year of service, also calculated based on a daily aggregated salary; seniority premium equal to 12 days of salary (capped to twice the minimum wage) per each year of service; accrued benefits owed, such as Christmas bonuses, vacations, vacation bonus, etc.

Culture

  • Communication styles: While straightforward in many respects, Mexican professionals often communicate in a way that prioritizes harmony and avoids confrontation. Understanding this indirectness, especially in feedback or negotiation situations, can prevent misunderstandings.
  • Hierarchy: Many Mexican organizations operate with a clear hierarchy. Decisions are often made at the top and flow downwards. Respect for authority and seniority is highly valued.
  • Formality: While Mexicans are generally warm and friendly, formality is still observed. It is common to use formal titles (such as "Licenciado" for someone with a bachelor's degree) until a more familiar relationship has been established.
  • Business lunches: In Mexico, lunch is the most important meal of the day and is typically a time for socializing and building relationships. It's common for business meetings to occur over lunch, which can last a couple of hours.
  • Family matters: Family is of utmost importance in Mexican culture, and this extends into the business world. Benefits that show support for family (such as flexible hours, understanding family commitments, etc.) are appreciated.
  • Note: These are generalizations and individual experiences can vary widely. It's important to approach each interaction with openness and respect for individual differences.

See more on Remote's Country Explorer: https://remote.com/country-explorer/mexico

Calculate the cost to hire a Mexican employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/mexico

Ready to onboard your employee? Sign up now.

The Netherlands

Labor costs (compared globally): 🔴 High

Employment complexity: 🟡 Medium

Termination complexity: 🔴 High

Talent concentration (software eng): Medium

Time zone(s): Central European Time Zone (CET, UTC +1)

Local workforce

  • Why hire in the Netherlands?: The Netherlands is an attractive hiring location due to its highly educated, multilingual, and tech-savvy workforce. Coupled with the country's strong digital infrastructure, it's a prime environment for tech-focused businesses and remote work. The Netherlands' also offers a stable, business-friendly environment and access to the European single market. Additionally, the high quality of life and excellent work-life balance are attractive to international talent. The country has a relatively large talent pool for in-demand roles like data analysts, data scientists, and engineers.
  • Talent hotspots: Major talent hotspots in the Netherlands include Amsterdam, renowned for its flourishing tech scene; The Hague, which attracts talent in political science and international relations; and Eindhoven, which is known by some as the "Silicon Valley of Europe."

Costs

  • Average salaries (data science): The average base salary for a senior data scientist in the Netherlands is $101,969 USD. (See more in our Where to Hire Report.)
  • Average salaries (software engineering): When leveraging our platform to calculate the cost to hire, Remote users explore offering an average salary of roughly $79,000 to $118,000 USD (base) to software engineers in the Netherlands. However, this can be highly variable based on seniority, skills, and experience.
  • Average salaries (account management): When leveraging our platform to calculate the cost to hire, Remote users explore offering an average salary of roughly $58,000 to $86,000 USD (base) to account managers in the Netherlands. However, this can be highly variable based on seniority, skills, and experience.

Hiring

  • Contract terms: At Remote, we can hire employees under the basis of three subsequent fixed-term employment agreements (EA), with a maximum of 12 months each, followed by an indefinite EA. Many companies issue fixed-term contracts for all new hires in the Netherlands. This is a widely accepted approach that provides employers with more flexibility.
  • Healthcare: In the Netherlands, 50%* of employers offer supplemental health insurance to their workforce. The country has a robust public health system, and while supplemental health insurance is not required, it does provide employees with access to a wider range of options for providers and specialists, as well as shorter wait times.
  • Pension: More than 90%* of Dutch employers offer an occupational pension scheme to employees. Remote's “second pillar” pension plan offers pension benefits in addition to national social security coverage (first pillar). (*based on third-party market research from our partners) (See Remote's local benefits plans in NL)
  • Visas & immigration: Depending on your employee's situation, Remote may be able to sponsor their visa application in the Netherlands. (Find out more about Remote Relocation.)

Time off

  • Public holidays: The Netherlands has 11 public holidays where employees get the day off.
  • Vacation time: All full-time employees are legally entitled to 20 days paid annual leave.
  • Sick leave: Employees in the Netherlands can take sick leave without a sick note. If the sick leave is prolonged, a company-appointed doctor needs to be involved to assess whether the employee can resume work. During the first two years of illness, the employer has to pay at least 70% of salary (as long as it does not exceed the statutory maximum) and enable the reintegration of the employee in line with the doctor’s advice. Employees are protected from termination during at least first two years of sick leave. However, a fixed-term EA can conclude during illness without any obligation to renew it (which is why we recommend the flexibility of fixed-term agreements during the first three years of employment).
  • Parental leave: Pregnant employees are entitled to four to six weeks of pregnancy leave (before the due date) and at least 10 weeks maternity leave (after childbirth). Additionally, parents with children up to age eight can take unpaid parental leave at any time (part of which is paid by the state if it is taken in the first year following the birth). They are eligible as soon as they start work and employers must allow this leave.

Termination

  • Termination: To terminate an employee, a prior decision from a Dutch government agency or a court is needed - making it a more difficult process than in most countries. Mutual agreement is also possible, but employees have a strong position for negotiation. Urgent dismissal is also possible but only in the case of serious misconduct. Because of this, many companies issue fixed-term contracts for all new hires in the Netherlands. This is widely accepted and gives employers more flexibility. Employers can of course keep the employee on after the contract ends (typically one year). Our team can offer guidance on the best approach for hiring and terminations in the Netherlands.

Other

Culture:

  • Consensus-driven culture: Dutch businesses often adopt a participative style of decision-making, where everyone's input is considered. This consensus-oriented approach can make the decision process longer but is seen as more democratic.
  • Communication styles: Dutch professionals are known for their direct and open communication style. This straightforwardness can sometimes be mistaken for bluntness, but it's valued in the Netherlands for its efficiency.
  • Work-life balance: The Dutch place a high emphasis on work-life balance. Part-time work is common, and employees have the right to request changes to their working hours, which in most cases cannot be denied.
  • Punctuality: Time is highly respected in Dutch business culture. Meetings generally start and finish on time, and lateness is frowned upon.
  • Note: These are generalizations and individual experiences can vary widely. It's important to approach each interaction with openness and respect for individual differences.

See more on Remote's Country Explorer: https://remote.com/country-explorer/netherlands

Calculate the cost to hire a Dutch employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/the-netherlands

Ready to onboard your employee? Sign up now.

The Philippines

Labor costs (compared globally): 🟢 Low

Employment complexity: 🟡 Medium

Termination complexity: 🟡 Medium

Talent concentration (software eng): Low

Time zone(s): Philippine Standard Time (UTC +8)

Local workforce

  • Why hire in the Philippines?: The Philippines has a young, ambitious, and educated workforce that is highly proficient in English. Its outsourcing industry is strong, offering access to many skilled professionals in customer service, tech, and administrative roles. With lower labor costs, it provides cost-efficiency for businesses. Additionally, the time difference from Western countries can be leveraged to offer round-the-clock customer service or continuous development cycles.
  • Talent hotspots: Manila, the country's capital, is the top talent hub. Cities like Cebu and Davao are emerging as hotspots.

Costs

  • Labor costs: Labor costs in the Philippines are significantly lower than in Western countries. In the APAC region, the Philippines sees average costs that are significantly lower than those in Japan, Singapore, China, and South Korea, and roughly on par with Malaysia and Indonesia.
  • Average salaries (customer service): When leveraging our platform to calculate the cost to hire, Remote users explore offering an average salary of roughly $16,000 to $24,000 USD (base) to customer service specialists in the Philippines. However, this can be highly variable based on seniority, skills, and experience.
  • Working hours & overtime: In the Philippines, an employee’s normal hours should not exceed eight hours a day in a five-day working week (not including meal times). Any overtime work must be paid at at least 25% of their regular wages. Employees working at night (between 10 p.m. to 6 a.m.) are entitled to at least 10% additional pay. Work during public holidays must be paid at at least 30% of regular wages.

Hiring

  • Probation periods: The standard probationary period is six months.
  • Health insurance: Employers usually provide health insurance benefits in addition to the mandatory coverage through the Philippine Health Insurance Corporation (PhilHealth).

Time off

  • Public holidays: The Philippines recognizes 20 national holidays, consisting of 12 regular holidays and 8 special holidays, which are paid days off.
  • Paid time off: There is no basic statutory sick leave or vacation leave. However, after one year of service, employees are entitled to Service Incentive Leave - five days of paid leave annually.
  • Parental leave: Maternity leave is 105 days, and paternity leave is seven days. Single mothers are eligible for an additional 15 days paid leave. An additional 30 days of unpaid leave may be requested.

Termination

  • Termination: Termination in the Philippines follows strict regulations to protect employees. According to the law, "just causes" include serious misconduct, willful disobedience, gross and habitual neglect of duties, fraud, willful breach of trust, commission of a crime, and other analogous causes. Employers must give employees written notice of termination. Employees must then have the opportunity to appeal the decision at a hearing, and the employer will then render a final decision. "Authorized causes" include illness, redundancy, and other economic reasons.
  • Notice periods: Employers must give one month notice for most authorized reasons.
  • Severance: Severance pay is not required for terminations with a just cause. For authorized causes, employers must pay severance pay of one months pay or one-half month’s pay for every year of service, whichever is greater.

Culture

  • Communication styles: Filipinos are generally indirect communicators, prioritizing harmony and respect. They often use non-verbal cues.
  • Hierarchy: Filipino businesses often have clear hierarchical structures. Respect for elders and superiors is ingrained in the culture.
  • Relationships matter: Personal relationships and group harmony are important, and socializing and networking are seen as essential in business contexts.
  • Work schedules: Traditional work schedules run from 8 am to 5 pm, with a lunch break. However, remote employees often follow specific shift schedules to align with their international employers.
  • Work-life balance: Filipinos value family and community, often blending their professional and personal lives. Social bonds and celebrations are an integral part of Filipino work culture.
  • Note: These are generalizations and individual experiences can vary widely. It's important to approach each interaction with openness and respect for individual differences.

See more on Remote's Country Explorer: https://remote.com/country-explorer/philippines

Calculate the cost to hire a Filipino employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/philippines

Ready to onboard your employee? Sign up now.

Poland

Labor costs (compared globally): 🟢 Low

Employment complexity: 🟡 Medium

Termination complexity: 🔴 High

Talent concentration (software eng): Medium

Time zone(s): Central European Time Zone (CET, UTC +1)

Local workforce

  • Why hire in Poland?: Poland is a growing talent hot spot, characterized by a highly skilled workforce, competitive labor costs, and a thriving tech ecosystem. Situated at the heart of Europe, it offers convenient access to many major markets. Polish professionals tend to be highly proficient in English and are known for having a strong work ethic and dedication to excellence.
  • Talent hotspots: Poland's talent hotspots include Warsaw, the capital, known for finance, IT, and multinational corporate hubs; Krakow, a major tech and outsourcing center; Poznan, known for its logistics, manufacturing, and IT sectors; and the Tri-City area (Gdansk, Gdynia, and Sopot), which is becoming increasingly recognized for its tech and startup scene.

Costs

  • Labor costs: Poland has moderate labor costs compared to other countries, particularly those in the EU. They are typically lower than in Germany or the UK, and on par with nearby countries such as Slovakia and the Czech Republic.
  • Average salaries (software engineering): Remote users offer software engineers in Poland average salaries between $71,000 - $92,000 USD. However, this can be highly variable based on seniority, skills, and experience. (Sign up to use our free in-product Compensation Explorer tool.)

Hiring

  • Probation periods: Employers have the right to begin employment relationships with formal “trial contracts,” which usually expire after three months (maximum length allowed). At the end of this period, an employer can either end the relationship or offer the employee a new fixed-term or indefinite contract.
  • Wet ink signatures: In Poland, employment agreements require a wet ink signature, meaning the contract will be prepared in Remote but need to be exported for a signature in pen. This can cause delays, especially if contract amendments are requested. It is advised to allow for extra time in the onboarding process or when amending existing contracts (like in the event of pay increases).
  • Health checks required: Employees in Poland must receive a work medical examination prior to being hired as well as a mandatory health and safety training session. Remote can handle both of these requirements for your team. Employees will receive guidance on how to do the health check with one of Remote's partners, and they can easily upload a health check certificate in their Remote dashboard.
  • Essential benefits: According to Remote's Global Benefits Report, the most essential benefits in Eastern European countries including Poland are sick leave (72%) and health insurance (70%). (Download the report to find out more.)
  • Eyeglasses for work: As required by law, employers must reimburse employees for the cost of corrective glasses in some cases. If approved, employees will be reimbursed up to 250 PLN, which is roughly $50 USD. (See more about benefits in Poland.)

Time off

  • Public holidays: Poland has 13 public holidays where employees get the day off.
  • Vacation time: Employees in Poland are entitled to 20 days of paid time off per year for the first 10 years they are in the workforce (including education). After 10 years, this increases to 26 days.
  • Generous sick leave: Employees under 50 years of age receive compensation for up to 33 days per calendar year (14 days for over 50 year-olds). This amount is paid for by the employer at 80% of the allowance basis or 100% of the allowance basis if the illness occurs during pregnancy or was caused by an accident at work or during the commute from/to work. If sick leave has to extend beyond 33 days, compensation is covered by the Social Security Office (ZUS).
  • Parental leave: Pregnant employees are entitled to 52 weeks of maternity leave, split into three parts. The first part of maternity leave lasts up to 20 weeks and begins six weeks before the mother’s due date. New mothers cannot return to work until at least 14 weeks have passed since childbirth. After the first 20 weeks, the employee may request an additional six weeks of leave, which the employer is required to provide. Beyond the first 26 weeks, the employee may request an additional 26 weeks as parental leave, which can be taken by either parent.

Termination

  • Termination: The employer must provide a reason for termination, even in the case of fixed-term employment agreements. Reasons for termination may include any violation of the employment agreement or the performance of the employee. Client operational reasons may not be used as Remote remains the employer. It is common practice to terminate an employee through mutual agreement. This gives the parties more freedom regarding the conditions of termination and the assurance that the termination will not be challenged in court. Payment in lieu of notice is not recognized in Poland, but an employee can be released from work duties before the end date.
  • Notice period: The notice period is usually three months for employees who have worked with the company for more than three years and one month for employees who have between six months and three years of service. For less than that, the notice period is usually a week.
  • Severance: For employees who have worked with the company for less than two years, severance pay is one month’s salary; for employees who have worked with the company for anywhere between two and eight years, two months’ of pay; for employees who have worked with the company for more than eight years, three months’ salary.

Culture

  • Hierarchy: Polish businesses tend to be hierarchical, and decisions are usually made at the top. Respect for seniority and position is important.
  • Formality: The Polish business environment is rather formal compared to many other countries. It is common to use titles and surnames in communication until a personal relationship has been established.
  • Communication styles: Polish professionals are known to sometimes communicate indirectly. They might not express disagreement or negative feedback openly, so understanding indirect cues can be crucial.
  • Relationships matter: Personal relationships are valued in Polish business culture. Face-to-face meetings are preferred over virtual or phone communications, especially when building new relationships.
  • Note: These are generalizations and individual experiences can vary widely. It's important to approach each interaction with openness and respect for individual differences.

See more on Remote's Country Explorer: https://remote.com/country-explorer/poland

Calculate the cost to hire a Polish employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/poland

Ready to onboard your employee? Sign up now.

Portugal

Labor costs (compared globally): 🟡 Medium

Employment complexity: 🟡 Medium

Termination complexity: 🔴 High

Talent concentration: Low

Time zone(s): Western European Time Zone (WET, UTC +0)

Local workforce

  • Why hire in Portugal?: Portugal is an attractive destination for hiring, particularly in tech, due to its growing talent pool backed by strong STEM education and excellent English proficiency. It also offers cost efficiency compared to many Western countries. Portugal offers a thriving tech infrastructure with numerous incubators, co-working spaces, and events. This, combined with an overall high quality of life, makes it appealing for international talent and expats. There are also numerous government incentives that increase Portugal's appeal for companies seeking to expand their workforce internationally.
  • Best destinations for remote work: Lisbon, Porto, Amadora, Tomar, Braga, and Madeira in Portugal all made it on our list of Best Destinations for Remote Work. (See the full list)

Costs

  • Labor costs: Compared to many other Western European countries, Portugal offers competitive labor costs.
  • Average salaries (software engineering): Remote users offer software engineers in Portugal average salaries between $43,000 - $75,000 USD. However, this can be highly variable based on seniority, skills, and experience. (Sign up to use our free in-product Compensation Explorer tool.)
  • Average salaries (product design): When leveraging our platform to calculate the cost to hire, Remote users explore offering an average salary of roughly $44,000 to $66,000 USD (base) to product designers in Portugal. However, this can be highly variable based on seniority, skills, and experience.

Hiring

  • Contract terms: Remote can support indefinite agreements in Portugal. We cannot support fixed-term agreements.
  • Extended probation: For contracts of indefinite duration, the statutory standard probation period is 90 days. But this can be extended to 180 days for positions that are technically complex, have high levels of responsibility, or require special qualifications.
  • Health checks required: In Portugal, health checks are required before an employee can begin work. This is part of Remote’s onboarding process. Employees will receive guidance on how to do the health check with one of Remote's partners, and they can easily upload a health check certificate in their Remote dashboard.
  • Meal cards: Meal cards are a common and expected benefit in Portugal. They are used to cover the cost of employee meals during work days. They also offer tax benefits to employers and employees.
  • Healthcare: In Portugal, 90%* of employers offer supplemental health insurance to their workforce. Although the country has a public health system, supplemental health insurance provides employees with access to a wider range of options for providers and specialists, as well as significantly shorter wait times. (*based on 3rd-party market research from our partners) (See Remote's local benefits plans in Portugal)
  • Visas & immigration: Depending on your employee's situation, Remote may be able to sponsor their visa application in Portugal. (Find out more about Remote Relocation.)

Time off

  • Public holidays: Portugal has 13 public holidays where employees get the day off.
  • Vacation time: By law, all employees in Portugal are entitled to 22 days of holiday leave per year.
  • Parental leave: Pregnant employees must take at least 42 days off after the birth of the child. Paternity leave is mandatory for at least 28 days within the 42 days after birth. Both parents are entitled to at least 120 or 150 days of leave after birth but may elect not to use the full time.
  • Unpaid leave: This is a common entitlement in Portugal. Employees may take unpaid leave in consultation with their employer on a full-time or part-time basis. However, there is no legal requirement related to unpaid leave, unless the employee wants to use it for educational/training purposes.

Termination

  • Termination: Termination of the employment relationship can happen in the following ways: voluntary termination by the employee (resignation); retirement as per the employment contract; non-renewal of the employment contract or expiry; termination with just cause and no indemnity, for example in the case of theft or any other serious misconduct; collective dismissal due to economic reasons (bankruptcy, restructuring, etc.); or termination by mutual consent.
  • Employee notice periods: For an employee who has worked for less than six months, they must offer employers notice of at least 15 days. For between six months and two years of service, 30 days is required. For employment longer than two years, the employee has to provide 60 days.

Other

  • Training hours: In Portugal, employers must provide 40 hours of professional training per year to all employees with indefinite contracts. If these hours are not provided and duly registered, they will have to be paid upon termination according to Portuguese legal requirements.

Culture

  • Relationships matter: The Portuguese business culture is very relationship-oriented. Personal connections and face-to-face meetings are often vital to establish trust and secure business deals.
  • Hierarchy: Portuguese businesses are traditionally hierarchical, with a great deal of respect for seniority and position. Managers tend to make decisions while subordinates follow their instructions without questioning them.
  • Communication styles: Portuguese people are generally polite and courteous in their business dealings. They tend to avoid direct confrontation, so understanding indirect communication cues can be important.
  • Note: These are generalizations and individual experiences can vary widely. It's important to approach each interaction with openness and respect for individual differences.

See more on Remote's Country Explorer: https://remote.com/country-explorer/portugal

Calculate the cost to hire a Portuguese employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/portugal

Ready to onboard your employee? Sign up now.

South Africa

Labor costs (compared globally): 🟡 Medium

Employment complexity: 🟢 Low

Termination complexity: 🟡 Medium

Talent concentration (software eng): Low

Time zone(s): South Africa Standard Time (SAST, UTC +2)

Local workforce

  • Why hire in South Africa?: South Africa has a diverse and dynamic workforce. The country's tech industry is growing rapidly, with a relatively large talent pool in software development, IT, and related sectors. English is one of the country's official languages, assisting in smooth international collaboration.
  • Talent hotspots: Johannesburg is the largest city and economic hub in South Africa. Cape Town is known for its thriving tech scene and a significant number of start-ups, not to mention its expat community. Durban and Pretoria also host a vibrant tech community.

Costs

  • Average salaries (software engineers): Users on the Remote platform pay software engineers in South Africa an average of $57,000 - $96,000 USD (base). However, this can be highly variable based on seniority, skills, and experience. (Use Remote's Compensation Explorer for free in our platform to see average salaries around the world.)
  • Working hours & overtime: Employees can work a maximum of 45 hours per week. Overtime is paid at 1.5x the normal wage (2x for working on Sundays and public holidays) and should not exceed three hours per day or 10 hours per week. All overtime must be agreed upon by both parties.

Hiring

  • Contract terms: Remote can offer either fixed-term or indefinite contracts in South Africa.
  • Probation periods: Standard probation periods are three months. For fixed-term contracts, probation periods must be a length deemed "reasonable" for the contract length. Extensions are only possible on a case-by-case basis and typically advised against.
  • Health insurance: The South African healthcare system consists of a subsidized public sector care and a smaller private sector (serving about 20% of the population). The best specialists can usually be found in the private sector and it is typical for professionals to obtain private health insurance through their employers. Our local plans have you and your employees covered. (See Remote's local benefits plans in South Africa)

Time off

  • Public holidays: South Africa recognizes 12 public holidays, which are paid days off.
  • Vacation time: All full-time employees are legally entitled to 21 consecutive days paid holiday leave a year.
  • Parental leave: Pregnant employees are entitled to four consecutive months of unpaid maternity leave. The four months can start anytime from four weeks before the expected birth date or earlier if a medical practitioner deems it necessary. At least six weeks are mandatory after the birth. An employee who is a parent but not the primary caregiver is entitled to ten days of consecutive unpaid parental leave from the day of the birth.

Termination

  • Termination: In South Africa, employees have the right to be "fairly dismissed," which means that the dismissal must be both substantively and procedurally fair. Recognized grounds for fair dismissal include: misconduct (no notice period required); operational requirements (redundancy/retrenchment); incapacity (such as ill health, poor work performance, or incompatibility). Employees can also resign or enter into a mutual termination agreement with their employer.
  • Notice periods: Requirements for notice periods are dependent on the length of service. One week for employees who have served for less than six months; two weeks for those who have served for six months to a year; four weeks for those who have served for longer than a year.
  • Severance: If an employer dismisses an employee for operational requirements, the Basic Conditions of Employment Act prescribes a severance pay of at least one week's remuneration for each completed year of continuous service.

Culture

  • Communication styles: South Africans often use polite and indirect communication styles in professional settings. They tend to avoid confrontation and maintain a sense of workplace harmony. Criticism or negative feedback is usually delivered tactfully and constructively.
  • Respect for diversity: South Africa is often referred to as the "Rainbow Nation" due to its cultural diversity. It's important to respect this diversity in the workplace and be aware of potential cultural sensitivities.
  • Work-life balance: South Africans place a significant emphasis on work-life balance. Weekends are generally reserved for family and leisure activities, and it's important to respect this time.
  • Note: These are generalizations and individual experiences can vary widely. It's important to approach each interaction with openness and respect for individual differences.

See more on Remote's Country Explorer: https://remote.com/country-explorer/south-africa

Calculate the cost to hire a South African employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/south-africa

Ready to onboard your employee? Sign up now.

Spain

Labor costs (compared globally): 🟡 Medium

Employment complexity: 🔴 High

Termination complexity: 🔴 High

Talent concentration (software eng): Medium

Time zone(s): Central European Time Zone (CET, UTC +1)

Local workforce

  • Why hire in Spain?: Spain offers a cost-efficient option for companies seeking to hire tech talent without compromising on quality. Its workforce is highly skilled, often bilingual (Spanish + English), and backed by a strong educational system. As a member of the EU, Spain provides companies with a more predictable legal and regulatory environment, along with access to the single market. The country's high quality of life and burgeoning tech scene are also a draw to professionals.
  • Expat/talent hotspot: With Spain's new digital nomad visa, which gives non-EU nationals the chance to live and work in Spain for up to five years, it is a quickly growing talent hotspot. Madrid is the top choice for expats moving to Spain, followed by the Catalonia region (home to Barcelona and surrounding areas).

Costs

  • Labor costs: The cost of hiring tech talent in Spain is generally lower compared to other global markets. Specifically, the cost of hiring software developers in Spain is about 60% lower than in the U.S., and around 23% lower than in the UK and Germany. Conversely, Spain's costs are roughly 67% higher than Poland's. (Note: These figures represent a rough approximation based on a collection of external sources.)
  • Average salaries (software engineering): The average base salary for a senior backend engineer in Spain is $84,505 USD. (See more in our Where to Hire Report.)
  • Average salaries (account management): When leveraging our platform to calculate the cost to hire, Remote users explore offering an average salary of roughly $56,000 to $84,000 USD (base) to account managers in Spain. However, this can be highly variable based on seniority, skills, and experience.
  • Working hours & overtime: Under Spain's CBA, the annual working hour limit is 1,800. Weekly work exceeding 40 hours, or 36 in August, is considered overtime. Overtime is compensated with rest time off, amounting to at least 75% of a regular working hour. This rest time can accumulate until it equals a full workday. The accrued day off must be taken within the same calendar year or the first week of the following January at the latest.

Hiring

  • Contract terms: Remote can support indefinite agreements in Spain. We cannot support fixed-term agreements.
  • Probation periods: Probationary periods in Spain aren't legally mandated but are set by Collective Bargaining Agreements (CBAs). They can vary within professional categories based on factors like experience or language skills, but must not exceed the CBA's limits. A zero-month probation is usually possible, with a maximum of six months.
  • Healthcare: In Spain, 80%* of employers offer supplemental health insurance to their workforce. Although the country has a public health system, supplemental health insurance provides employees with access to a wider range of options for providers and specialists, as well as significantly shorter wait times. (*based on 3rd-party market research from our partners) (See Remote's local benefits plans in Spain)

Time off

  • Public holidays: Spain has 9 public holidays where employees get the day off. Some employees may be entitled to more public holidays depending on their specific region.
  • Vacation time: All full-time employees are legally entitled to 23 days of paid holiday leave per year.
  • Parental leave: In Spain, both maternity and paternity leaves last 16 weeks. Maternity leave mandates at least six weeks post-birth and optionally four weeks prior, with benefits paid directly to the employee by the Social Security Administration. Mothers may also opt for an additional 15-day leave post-maternity and daily breastfeeding breaks. Paternity leave comprises an immediate six weeks off after birth and an additional 10 weeks within the first year, paid up to 4070.10 EUR. Both parents may also request unpaid leave until the child turns three.
  • Unpaid Leave: In Spain, unpaid full-time or part-time leave can be requested and is subject to employer approval. This is not a legal requirement, but a common practice, with details typically outlined in employment agreements.
  • Time off in August: August, Spain's hottest month, often sees many employees taking time off due to cultural traditions and business closures. However, this practice isn't universal across all businesses and workers.

Termination

Terminating employment in Spain can be complex due to strong worker protections. There are three main forms of termination:

  • Dismissal for Objective Reasons: This includes reasons such as employee ineptitude or job redundancy. Requires 15 days' notice and severance pay of 20 days' salary per year worked (up to 12 months' pay).
  • Disciplinary Dismissal: This can occur due to serious and culpable breach of contract by the employee. Requires no severance but demands clear justification.
  • Collective Dismissal: Mandates a consultation process and similar severance to objective dismissal.

If a dismissal (in any case) is declared "unfair" by a Spanish labor court, the employer might have to pay severance of 33 days' salary per year worked, capped at 24 months' pay, or reinstate the employee.

Culture

  • Relationships matter: When working with Spaniards, building trust outside of work can be important for effective collaboration and negotiations. It’s typical to open up about personal things when building relationships, and closing deals can often happen at the bar!
  • Communication styles: Communication can be very casual from the beginning, and it's not uncommon for a client can give you “un abrazo” (a hug) after a first meeting. Interruptions during conversations and talking loudly is quite common.
  • Work schedules: Spaniards keep to very different schedules than the rest of Europe, with each meal happening one to two hours later than is “usual,” which can impact when they are working. Some people believe that Spaniards don’t work a lot but they actually tend to work very long hours for this reason (except in August, when it's typical to take time off).
  • Note: These are generalizations and individual experiences can vary widely. It's important to approach each interaction with openness and respect for individual differences.

See more on Remote's Country Explorer: https://remote.com/country-explorer/spain

Calculate the cost to hire a Spanish employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/spain

Ready to onboard your employee? Sign up now.

Sweden

Labor costs (compared globally): 🔴 High

Employment complexity: 🔴 High

Termination complexity: 🔴 High

Talent concentration (software eng): Low

Time zone(s): Central European Time Zone (CET, UTC +1)

Local workforce

  • Why hire in Sweden?: Sweden has a highly educated and tech-savvy workforce. Known for tech innovation, particularly in fields like gaming, clean energy, and telecommunication, Sweden is home to a number of world-renowned companies and startups. The country's strong emphasis on work-life balance, gender equality, and employee rights also make it an attractive destination for top talent. The robust infrastructure, stable political environment, and extremely high English proficiency add to Sweden's appeal as a great place to hire.
  • Talent hotspots: Sweden's main talent hotspots are Stockholm, known for tech and startups; Gothenburg for automotive and manufacturing; and Malmö for tech and creative industries. Uppsala and Lund also draw young talent with their large universities.

Costs

  • Labor costs: Sweden has one of the highest overall labor costs in Europe, with average costs above 40 EUR an hour. This surpasses many Central and Eastern European countries but is comparable to other Nordic countries. However, these high costs are balanced by substantial employee benefits and social protections, which can offset some costs for employers.
  • Average salaries (software engineering): When leveraging our platform to calculate the cost to hire, Remote users explore offering an average salary of roughly $69,000 to $104,000 USD (base) to software engineers in Sweden. However, this can be highly variable based on seniority, skills, and experience.

Unions

  • Collective bargaining agreements: The majority of workers in Sweden fall under the protection of collective bargaining agreements, even those who are not members of a specific union. These agreements cover many areas where other countries rely on national employment laws.

Hiring

  • Probation period: The maximum probationary period for an employee in Sweden is six months. Probation is only permitted for indefinite agreements.
  • Health insurance: In Sweden, 70%* of employers offer supplemental health insurance to their workforce. Although the country has a strong public health system, supplemental health insurance provides employees with access to a wider range of options for providers and specialists, as well as significantly shorter wait times. (See Remote's local benefits plans in Sweden)
  • Other benefits: 90%* of employers offer a pension plan to their employees and 90%* offer life insurance. Remote offers an optional pension plan in Sweden, which includes life and other insurances. (*based on 3rd-party market research from our partners)

Time off

  • Vacation time: Employees in Sweden are entitled to 25 days of paid time off per year (applies to both full- and part-time employees). Employers are required to enforce the use of their employees’ vacation time.
  • Generous parental leave: Sweden has some of the most generous parental leave in the world. Mothers and fathers together are entitled to 480 days of parental leave at 80% of their usual compensation (up to a limit), meaning 240 days per parent. They can elect how the leave is taken across the period. In cases of multiple births, parents may take an additional 180 days of leave.

Termination

  • Termination: To terminate an employee in Sweden, the employer must provide the employee with a clear reason for the termination and sufficient notice.
  • Notice periods: The minimum notice period required to terminate an employee depends on the length of their tenure.
  • Severance: Sweden does not have a law requiring employers to provide severance pay, but employment contracts and collective bargaining agreements may have their own requirements.

Culture

  • Consensus decision making: Swedish professionals are known for their consensus-driven approach to decision making. They tend to value everyone's input, and decisions are typically made collectively. This can make the decision-making process slower, but it often leads to greater commitment to the decisions made.
  • Flat organizational structures: Swedish businesses tend to have flat organizational structures with less hierarchy, which fosters a more collaborative and less formal work environment.
  • Work-life balance: Swedes value work-life balance. It is common for employees to leave work on time, and they often balance work with outdoor activities, particularly during the summer months when daylight hours are long.
  • Fika culture: The "Fika" (coffee break) is an important part of Swedish work culture. These short breaks are seen as an opportunity for employees to socialize and collaborate informally. On remote teams, this could mean taking a break to socialize with friends, family, or neighbors.
  • Jantelagen: The Law of Jante, or "Jantelagen," is a concept that describes a disdain for individual success and accomplishment in Sweden. While it's not universal, it's still embedded in some parts of Swedish society and can influence workplace dynamics.
  • Note: These are generalizations and individual experiences can vary widely. It's important to approach each interaction with openness and respect for individual differences.

See more on Remote's Country Explorer: https://remote.com/country-explorer/sweden

Calculate the cost to hire a Swedish employee: https://remote.com/employee-cost-calculator

See Remote benefits: https://remote.com/benefits-guide/sweden

Ready to onboard your employee? Sign up now.