COUNTRY GUIDE

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Romania

A short guide to building a dedicated offshore team in Romania

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At a glance

Capital
Capital:

Bucharest

Official language
Official language:

Romanian

Population
Population:

19.89 million

Timezone
Timezone:

GMT+3

Developers
Developers:

95,000+

Currency
Currency:

Romanian Leu (RON)

Industry revenue
Industry revenue:

$16+ billion

Investment
Investments in IT sector

$11.64B

global ALLSTARSIT
Capital:

Bucharest

Language
Official language:

Romanian

Population
Population:

19.89 million

Timezone
Timezone:

GMT+3

Developers
Developers:

95,000+

Currency
Currency:

Romanian Leu (RON)

Industry revenue
Industry revenue:

$16+ billion

Industry size
Investments in IT sector

$11.64B

Why build a team in Romania

Overview

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.

Top tech hubs

Top tech hubs infographic

Employment Conditions Overview

ALLSTARSIT takes care of everything for you – we have a 360° approach with a full recruitment cycle

Payroll Cycle

In Romania, it is required by law for employees to receive payment at least once a month. 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.

Public holidays

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.

Grow your team in Romania with ALLSTARSIT

Setting up a separate business entity in every location where you plan to hire employees or a team is time-consuming and incurs high legal fees.

At the same time, navigating local labor laws and adhering to employee expectations can be a complex and challenging task, as is finding accurate and up-to-date employment information for all your potential hiring locations. Not to mention that tracking invoices and managing employee contracts through email and spreadsheets is messy and error-prone.

Compliance is critical in this context, and we must ensure that we follow local guidelines, particularly regarding taxes and legalities.

ALLSTARSIT streamlines the process by offering an integrated solution for finding and hiring employees, managing HR and payroll, and automating compliance across 20+ countries. All simple and hassle-free.

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What’s possible with ALLSTARSIT?

Staff Augmentation

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.

Dedicated Teams

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.

EOR / Contractor Management

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.

Staffing & Recruiting

Tap into a wide talent pool of top-tier engineers from our database. We will find the right fit for your business and help you reduce your hiring timeline.

Headhunting

Signing bonuses

Vacancy promotion

Free replacement

Preliminary interviews

HR interviews

HR Operations

Attract, hire, and retain top talent, building a motivated workforce that drives your business forward.

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Non-employee-employer liability

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Managing tech equipment

Retention and risk analysis

Performance reviews

Compensation revision & expense returns

1:1 meetings (180-degree)

Monthly reports

Performance reviews & periodic surveys

Ongoing client and expert support

Our solutions

Hire Employees / Contractors Solution Icon
Hire Employees / Contractors
Offer Corporate Benefits Solution Icon
Offer Corporate Benefits
Onboard & Retain Global Teams Solution Icon
Onboard & Retain Global Teams
Secure Office Space Solution Icon
Secure Office Space
Run Payroll Solution Icon
Run Payroll
Provide Health Insurance Solution Icon
Provide Health Insurance
Implement L&D Program Solution Icon
Implement L&D Program
Provide Health Insurance Solution Icon
Provide Health Insurance
Hire Employees / Contractors Solution Icon

Hire Employees / Contractors

Expand your business globally and hire employees or contractors quickly and efficiently by partnering with ALLSTARSIT, who can act as your EOR/CM and handle the administrative and legal aspects of their employment while you control their workload.

Offer Corporate Benefits Solution Icon

Offer Corporate Benefits

Improve your employees' well-being and job satisfaction by offering them a range of corporate benefits through ALLSTARSIT, including wellness consultant sessions, music lessons, workations, gym compensation, and employee recognition programs.

Onboard & Retain Global Teams Solution Icon

Onboard & Retain Global Teams

Keep track of your team's progress and satisfaction with ALLSTARSIT's monthly reports and periodic surveys, allowing you to identify any issues and make necessary adjustments to retain top talent.

Secure Office Space Solution Icon

Secure Office Space

Enhance your employees' working experience by offering them the possibility of working from an office or securing a seat in a premium co-working space shared area through ALLSTARSIT.

Run Payroll Solution Icon

Run Payroll

Simplify your HR operations and ensure your employees receive timely and accurate paychecks with ALLSTARSIT's comprehensive payroll solution.

Provide Health Insurance Solution Icon

Provide Health Insurance

Increase your employees' satisfaction and productivity by providing them with the peace of mind that comes with having access to a reliable and comprehensive health insurance package made possible by ALLSTARSIT.

Implement L&D Program Solution Icon

Implement L&D Program

Invest in your employees' professional development by implementing a comprehensive L&D program that includes access to online education platforms, language classes, and technical meetups, courtesy of ALLSTARSIT.

Customer Service Support Solution Icon

Customer Service Support

Build a Customer Care or a Customer Support team to ensure that your business excels in providing exceptional assistance to your customers.

Whether you need a team of professionals that can handle relationship building and product knowledge or a group of Tier 1/2/3 engineers that can help with troubleshooting and other technical issues, ALLSTARSIT can help you find, hire and manage them.

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Romania

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Trusted by teams and partners

ALLSTARSIT Client's logo - NetAppALLSTARSIT Client's logo - OracleALLSTARSIT Client's logo - SapALLSTARSIT Client's logo - Johnson&Johnson ALLSTARSIT Client's logo - IntelALLSTARSIT Client's logo - ImpervaALLSTARSIT Client's logo - Cato NetworksALLSTARSIT Client's logo - TaboolaALLSTARSIT Client's logo - YotpoALLSTARSIT Client's logo - NetafimALLSTARSIT Client's logo - NetAppALLSTARSIT Client's logo - OracleALLSTARSIT Client's logo - SapALLSTARSIT Client's logo - Johnson&Johnson ALLSTARSIT Client's logo - IntelALLSTARSIT Client's logo - ImpervaALLSTARSIT Client's logo - Cato NetworksALLSTARSIT Client's logo - TaboolaALLSTARSIT Client's logo - YotpoALLSTARSIT Client's logo - Netafim

ALLSTARSIT office in Romania

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