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Nearshoring to Romania

Romania is a highly-considered destination for nearshoring in Central and Eastern Europe, and in the EU in general, thanks to its low labor costs and the quality of its workforce. Romanian workers are known to be fluent in English, which greatly facilitates communication. The talent pool in Romania is also consistently growing, as more than 50,000 young students graduate from Romanian universities every year, with degrees in diverse domains.

FMC Group provides unmatched support to companies wishing to hire from the Romanian talent pool thanks to its comprehensive nearshoring services. We do not only assist clients during the recruitment process, but we also ensure the administrative management of employees daily and we make sure to provide everything they need to successfully achieve their missions. This allows clients to benefit from all the strengths of the Romanian labor force without breaking a sweat about local regulations, nor having to establish a local subsidiary.

Content:

  • Advantages of Nearshoring to Romania
  • FMC Group’s Nearshoring Approach
  • Advantages of Nearshoring with FMC Group
  • Labor Laws in Romania
    • Working Hours
    • Annual Paid Leave
    • Other Types of Paid Leave
    • Minimum Wage
    • Social Contributions and Taxes
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Stephan Dorn FMC Group

Advantages of Nearshoring to Romania

  • Labor costs in Romania are significantly lower than in other European countries. The hourly labor cost in the country in 2021 was estimated at EUR 8.5 per hour, which is 3.5 times lower than the EU average. The average hourly labor cost in Romania is estimated at EUR 8.8 in the services sector and EUR 7.7 in the industry sector.
  • Large numbers of Romanian youth are attending university or have higher education degrees. Universities in Romania provide education to around 200,000 students and produce over 50,000 graduates every year. The most popular fields of study in Romania are business, management, law, and engineering.
  • The IT sector is rapidly growing in Romania and currently counts over 120,000 actively-working professionals. Around 40,000 students are enrolled in ICT programs in Romanian universities and more than 8,000 graduate every year.
  • The labor force in Romania is highly-fluent in English, which immensely facilitates communication with Romanian employees. In 2021, the country ranked 15th worldwide in the EF English Proficiency Index.

FMC Group’s Nearshoring Approach

Selection

  • We look for candidates that perfectly match your needs and requirements;
  • We establish detailed reports on the best candidates;
  • We conduct hiring interviews;
  • We conduct other types of tests if requested.

Recruitment

  • We present the results of interviews and tests in a video format or other formats if requested;
  • We let you make the final hiring decision;
  • We negotiate employment contracts;
  • We host your employees at our local office.

Operation

  • We manage the payroll and other financial expenses;
  • We monitor your employees’ paid leaves and other benefits;
  • We let you have full control over your employees’ functions;
  • We give your employees everything they need for their job (offices, phones, computers, internet, etc.).
Approach for Nearshoring

Advantages of Nearshoring with FMC Group

  • We select the best candidates that would fit right in your company;
  • We advertise the jobs on various digital platforms;
  • We search for potential candidates in our growing talent database;
  • We offer flexible services with no long-term commitment;
  • We give you control over local employees’ tasks while we handle their administrative management.

Labor Laws in Romania

Working Hours

  • Employees in Romania can work up to 40 hours per week.
  • Overtime work cannot exceed eight hours per week or four hours in one day.
  • Paid time off is given as compensation for overtime work in place of payment. However, if giving time off is not possible within 60 days, overtime work has to be remunerated at a minimum rate of 75% above the regular pay.

Annual Paid Leave

  • Employees in Romania can take 20 days of paid vacation every year.
  • Annual vacation can be taken in the same year or until the end of June of the following year.
  • Romania commemorates 12 public holidays.
    • January 1st – 2nd: New Year’s Holiday;
    • January 24th: Unification Day;
    • Between April and May: Good Friday and Easter Monday;
    • May 1st: Labor Day;
    • Seven weeks after Easter: Pentecost;
    • June 1st: Children’s Day;
    • August 15th: Assumption Day;
    • November 30th: Saint Andrew;
    • December 1st: National Day;
    • December 25th – 26th: Christmas Holiday.

Other Types of Paid Leave

  • Maternity Leave: Female employees can take up to 126 days of paid maternity leave: 63 days before birth and 63 days after. Pay during maternity leave is covered by Social Security at a rate of 85%.
  • Paternity Leave: New fathers can take between five and 10 days of paid leave after their new child is born. If they take an infant care course, they can take up to 15 days instead.
  • Parental Leave: After the maternity and paternity leaves are concluded, one of the two parents has the right to stay on paid leave until the child reaches the age of two. During this period, Social Security covers the employee’s pay at a rate of 85%.
  • Sick Leave: Employees are entitled to sick leave for up to 180 days per year, with the possibility of extending it for 90 extra days. The employer has to cover the employee’s pay during the first five days. Afterward, Social Security pays the employee at a rate between 75% and 100% of the regular wage, based on the type of illness.
  • Bereavement Leave: Employees are entitled to three consecutive days of paid leave after the death of an immediate family member.

Minimum Wage

  • The minimum wage in Romania is set at RON 2,550 (EUR 515) per month.
  • If employees are working on minimum wage, they are entitled to a salary increase after 24 months of work at the latest.
  • Employers are required to pay their employees on the last working day of each month.

Social Contributions and Taxes

  • Employer contributions in Romania include Social Security (4.00%) and Unemployment Insurance (2.25%), amounting to 6.25% of the gross salary.
  • Employee contributions in Romania include Pension (25.00%) and Health Insurance (10.00%), amounting to 35.00% of the gross salary.
  • The income tax in Romania is set at a flat rate of 10.00% for all revenues.