Beautiful mountains, forested cities, and medieval towns make Romania one of the best destinations for tourists.
However, today, we’re not tourists. We are talent professionals guiding any startup or company that wants to hire remote contractors from Romania, the beautiful Eastern European country.
This guide will take you through the essentials, from the talent atmosphere to taxes, cultural nuances, and payroll.
Romania: a quick snapshot
Before we go deeper, it’s important to understand the Romanian economy and the potential of its workforce. Here’s a quick look at what this medieval country is made up of.
- Location: Southeastern Europe, with the following neighbors: Hungary, Serbia, Ukraine, Bulgaria, and Moldova
- Capital of Romania: Bucharest
- Population: ~19 million
- Climate: Temperate-continental, with four distinct seasons
- Currency: Romanian Leu (RON)
- Official Language: Romanian
- GDP: 351 billion USD (2023). Robust, with steady economic growth
- Key Industries: Technology, manufacturing, automotive, agriculture, IT services
Romania’s thriving employment market
Romania’s economy has been growing steadily, which makes it an ideal location for startups looking to hire top talent.
Also, Romania’s workforce stands out for its tech-savvy professionals, who are made up of engineers, tech experts, and more. Here’s an outlook on its economic growth and startup scene.
Economic growth and job prospects
Romania’s strong GDP growth reflects a dynamic job market. According to the European Commion, in 2024, real GDP growth in Romania is expected to reach 1.4%. A gradual recovery is set to accelerate growth above 2% and to around 5% in 2025 and in 2026.
Data from datacatalog.worldbank.org
Cities such as Bucharest, Cluj-Napoca, and Iași are particularly known for their growing tech and service sectors. This atmosphere, which is highly competitive in terms of labor cost while maintaining a high talent rate globally, makes it an ideal place for any startup or company looking to hire remote contractors from Romania.
Tech hubs and startup scene
Romania has rapidly evolved into a tech hotspot. Most startups in the country can be categorized under Software & Data, Marketing & Sales, Hardware & IoT.
Cities like Bucharest, Cluj-Napoca, Timișoara, and Iași are home to innovative startups and a vibrant IT ecosystem. According to Startup Blink’s Global Startup Ecosystem Index, Bucharest is Romania's 1st best startup ecosystem and is ranked 8th in Eastern Europe and 109th worldwide. This makes the country a great place for technical talent and for anyone looking to hire remote contractors in Romania.
Startup Blink Global Startup Index
Legal framework for remote work in Romania
In Romania, remote work has been gaining traction, particularly since the pandemic. If you’re looking to hire remote talent, as an employer, you must adhere to local labor laws, which now include clear regulations and arrangements on remote work.
Flexibility in work models
Romanian labor laws provide a balanced framework for remote work. This ensures flexibility for both employers and contractors.
Hybrid models are also popular in major cities, allowing businesses to access talent that thrives in various working environments.
Payroll and tax essentials in Romania
If you’re a startup that wants to hire remote contractors in Romania, taxes and payroll are important. Here’s what to consider:
Payroll cycles
In the Romanian payroll system, employees and contractors are typically paid monthly. And salaries are usually due no later than the 10th of the following month.
Flexibility exists for bi-weekly payments based on agreements between the contractor and employer.
Income tax and employer costs
In Romania, there’s a flat income tax rate of 10%, which is one of the lowest in Europe.
However, employers must account for social security contributions, which can sometimes go up from between 25% and 45% of the gross salary, depending on the agreement.
Working hours and overtime in Romania
The standard workweek in Romania is 40 hours (8 hours per day, Monday through Friday).
Contractors are entitled to overtime pay at higher rates, capped at 48 total working hours per week. This ensures compliance with labor standards while maintaining productivity.
Paid leave and holidays in Romania
Like many parts of the world, Romanian workers enjoy several benefits. Here are some leave and holiday policies that guarantee good work-life balance and should be taken seriously by anyone looking to hire remote contractors in Romania.
- The annual leave: This is a minimum of 20 days paid vacation per year. This of course, excludes Romanian national holidays.
- Sick leave: Workers in Romania have access to a sick leave. This can be fully or partially covered depending on the worker's health insurance and agreement.
- Parental leave: Both maternity and paternity leave are provided, with mothers entitled to up to 126 days of leave, and fathers eligible for paid paternity leave.
Why choose Romania for remote talent?
Every startup or founder has one or a few reasons why they consider certain cities, towns, or countries when it comes to global talent. Below, we’ll take you through the reasons why you would want to hire remote contractors from Romania.
A highly skilled workforce
Romania offers a diverse talent pool, who range from software developers and engineers to multilingual support specialists. These professionals are known for their adaptability, strong problem-solving skills, and technical expertise.
Cost-effective hiring
Labor costs in Romania are competitive compared to Western Europe and North America.
You can hire world-class talent at a fraction of the cost while maintaining quality standards.
Convenient time zone
Located in the Eastern European Time Zone (GMT+2), Romania allows for seamless collaboration with teams across Europe, the Middle East, and even North America with some overlap.
Cultural and linguistic considerations
While Romanian is the official language, many professionals, especially in tech and service industries, are fluent in English and other languages like French, German, or Spanish. Understanding Romanian work culture—marked by professionalism and dedication—can enhance collaboration and foster a strong working relationship.
Factors to consider when you hire remote contractors in Romania
- Legal compliance: Ensure contracts meet Romanian labor laws to avoid legal complications.
- Language skills: While English is widely spoken, assess language proficiency for smooth communication.
- Cultural sensitivity: Building rapport with Romanian contractors involves understanding their work ethic and cultural nuances.
Ready to hire remote contractors in Romania?
With its skilled workforce, cost advantages, and strategic location, Romania is a goldmine for businesses seeking exceptional talent.
Whether you’re scaling your startup or expanding globally, tapping into Romanian talent can be a game-changer for your business success.
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