COUNTRY GUIDE
A short guide to building a dedicated offshore team in Romania
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Bucharest
Romanian
19.89 million
GMT+3
95,000+
Romanian Leu (RON)
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$16+ billion
$11.64B
Bucharest
Romanian
19.89 million
GMT+3
95,000+
Romanian Leu (RON)
$16+ billion
$11.64B
In southeastern Europe, Romania has a tech-savvy population of over 19 million and a robust STEM education system producing thousands of ICT graduates annually. The IT sector, contributing significantly to the country's GDP, is expected to grow at a CAGR of 9.46% from 2023-2028.
Bucharest, the capital known as 'Silicon Forest,' boasts vibrant tech hubs in emerging fields like AI, blockchain, and cybersecurity.
Romania has a substantial talent pool of over 95,000 developers, thanks to low employer taxes at just 6.25%, making it cost-effective for businesses.
High English proficiency, strategic European location, competitive costs, and a stable business environment make Romania an ideal destination for offshore development teams.
Romania's dynamic tech ecosystem, skilled workforce, cost advantages, and commitment to innovation make it a top choice for software development.
Payroll Cycle
In Romania, it is required by law for employees to receive payment at least once a month and payment is made 1 time per month according to the country law. The specific date of payment should be established in the individual employment agreement, although many employers opt to distribute payments either at the end of the month or at the start of the following month after the pay period.
Employer Taxes
Employer taxes in Romania are 6.25%.
Overtime Pay
Overtime work in Romania is defined as any hours worked beyond 8 hours a day or 40 hours a week. Employees are not permitted to work more than 8 hours of overtime in a single week, except in cases of force majeure or urgent work to prevent accidents or their consequences.
Employers can request overtime work, provided that the average weekly working hours over a 4-month period, including overtime, do not exceed 48 hours (with a maximum of 8 hours of overtime per week).
Compensation for overtime is either in the form of compensatory time-off, to be provided within 90 calendar days, or if not possible within that timeframe, a premium pay of not less than 75% of the basic salary is paid.
Overtime work is remunerated at a rate of 75% of the base salary.
However, certain categories of employees, such as those under 18 years of age, pregnant employees unable to work during regular hours, and part-time employees, are not allowed to work overtime.
Paid Leave
Romanian workers have the right to take 20 paid vacation days every year. The employer must give them this time off at least 5 workdays before it starts. If workers don't use all their vacation days, they can use them in the first six months of the following year.
Sick Leave
Employees can receive up to 180 days of paid sick leave each year, which can be extended for an additional 90 days if necessary. The amount of compensation during sick leave, ranging from 75.00% to 100.00% of the average monthly salary over the preceding six months, depends on the illness category.
The employer covers the cost of sick leave for the initial five working days, while the FUNASS (Unique National Fund of Health Insurances) fund takes over compensation from the sixth day onward.
Public and Provincial Holidays
Romania has eight official holidays in a year, and they also respect religious observances. However, these religious observances are not public holidays and are usually determined by employment contracts or informal company agreements.
In the context of software development in Romania, religious traditions don't have a big impact. So, these observances won't greatly affect the availability of developers and project timelines.
Notice Period
Either the employer or employee has the power to end the employment contract without providing a reason or notice. However, the party that initiates termination may be responsible for any costs or loss of pay that occurs as a result. If an employer terminates employment with a valid reason, they must provide at least 15 days' notice. Fixed-term employees must be notified of contract expiration 30 days before the end date to avoid automatic renewal.
13th Month Bonus
There is no legal requirement to pay employees in Romania an annual bonus in the form of a 13th salary or similar.
Establishing a separate business entity in Romania where you plan to build a team can be labor-intensive and result in considerable legal costs.
Simultaneously, comprehending Romanian labor laws and fulfilling employee expectations can pose complex and demanding challenges. This is further complicated by the need to acquire accurate and up-to-date employment information for Romania. Moreover, managing contracts and monitoring invoices via email and spreadsheets can lead to disorganization and errors.
In this context, compliance is key, and it's essential to adhere to Romanian regulations, particularly concerning taxes and legal matters.
ALLSTARSIT simplifies this process by offering a comprehensive solution for identifying and hiring employees in Romania, managing HR and payroll, and ensuring compliance is automated. We make the process simple and free from complications.
Choose the right expert professionals required for your specific project, saving time and wasted effort.
This service enables software development companies worldwide to meet any technical needs outside their core skill set by adding specialized staff on demand while retaining control of the project's specifications and scope.
Establish R&D / Tech Support / QA & Testing / DevOps / Data Entry Centers in your chosen location.
Forget about investing in facilities, equipment, technology, or human resources. We manage all necessary operations as your specialist. This can help you save money and resources, all while reducing frustration and simplifying internal processes.
Use ALLSTARSIT as your EOR / CM to easily hire employees in new countries without setting up a legal entity.
We act as the employer for your new hire, handling all HR, payroll, tax, and compliance requirements on your behalf, while you maintain control of their workload.
Effortlessly Access Expert Tech Support for Your Projects
Our Tech Support service provides companies worldwide with access to the best technical experts tailored to their specific project needs. Whether you require troubleshooting, maintenance, or specialized assistance, we ensure that you have the right professionals on hand to support your endeavors effectively.
Maximize Your Customer Satisfaction Level with Our Customer Support Service
Access tailored customer care solutions for your business needs. Our expert team is dedicated to addressing inquiries, resolving issues, and delivering personalized assistance. Say goodbye to challenges and hello to exceptional customer care with us.
Contact us, and we’ll help you hire the best tech talent in Romania
