Located in Eastern Europe, Romania is famous for its medieval castles, stunning Carpathian landscapes, and rich folk traditions, including the legend of Dracula. Beyond its cultural heritage, it is also a rising tech hub with a rapidly expanding IT sector.

Romania has the fastest internet speeds, with an average fixed broadband speed of 123.31 Mbps (as of August 2022), which is nearly twice the global average of 69.14 Mbps. The country’s tech ecosystem is thriving, too. In 2023, the country employed over 192,000 software developers, housing one of Europe’s largest pools of certified IT specialists.

The Information and Communication Technology (ICT) sector is projected to contribute €52 billion (USD 10.8 billion) to Romania’s economy by 2030, accounting for 10% of the country’s GDP, making it an attractive destination for tech investment and innovation.

The country has a diverse economy with a number of other thriving business sectors like automotive, machinery, and electronics. The automotive industry is pivotal in its economic growth and accounts for approx. 14% of the total GDP. It is also home to the key automotive players Ford and Dacia (Renault).

Dacia, the top-selling brand, occupied a 29.4% market share in the automotive industry in 2024, making significant sales in other European countries and contributing to the country’s overall exports.

If we look at the GDP, it averaged around USD 126.54 billion over 35 years (1987-2023) and reached an all-time high of USD 351 billion in 2023. This reflects Romania’s improving purchasing power and market capacity, which is led by domestic demand and exports. It also shows Romania has a strong consumer base, making it an attractive destination for foreign businesses and investments.

The debt-to-GDP ratio remained at 48.8% in 2023, which is substantially low compared to other countries worldwide. It indicates the country has a lot of fiscal space to manage and service the debt without affecting the economic stability or relying on borrowing.

So, in a nutshell, the country offers a range of opportunities for businesses looking to expand and hire skilled workforce at competitive prices.

With all the amenities, a growing technical sector, and solid infrastructure, Romania is an attractive place for finding and hiring independent contractors.

Who Are Independent Contractors in Romania?

Independent contractors in Romania are self-employed individuals who work on specific projects and provide services to clients under a contract. It can be either a service contract or a civil contract.

Independent contractors are different from employees, and they are not given the same benefits like health and insurance, paid leave, and social security contributions. They are also responsible for paying and managing their own taxes and tax returns.

Independent contractors in Romania offer specialized expertise in the areas of marketing, design, consulting, programming, and other sectors. They are usually hired for temporary or project-based work with measurable outcomes and clearly stated timelines.

Difference Between Independent Contractors and Employees in Romania

Like most other countries around the world, Romanian law also clearly differentiates employees and independent contractors. This demarcation is very important for business taxation and the payment of employee benefits.

Here are the key differences between the two:

  • Contract: All employees in Romania are required to sign an employment contract. This states the terms of service and mentions the employee benefits like pension contributions, paid time off, and other rights of employment. Independent contractors work under a service contract and are responsible for bearing their own business expenses, insurance, and taxes.
  • Benefits: The employees also have paid vacation days, sick leaves, and social security benefits in Romania, while independent contractors do not receive any paid leave or other employee benefits. They also have to make their own healthcare payments and social security contributions.
  • Working Hours: Moreover, the employees are required to work under specific working hours and Labour regulations. There are specific rulings about overtime, paid leave, and the termination process. The contractors, on the other hand, have greater flexibility in their work. They can set their own working hours and work for specific timelines rather than having fixed working hours.
  • Salary: The wage rate or salaries also differ between the two. The employees are given a fixed monthly wage, and taxes are automatically deducted by the employer. The contractors are paid for a project milestone, hourly, or upon completion of the entire project. They are also liable to hold their taxes and pay them, whereas the employers do that for the employees.

Misclassification Mistakes

It is very important to understand these differences and ensure that you never misclassify an employee as an independent contractor and an independent contractor as an employee.

If the tax authorities in Romania get to know that the employee who should have been classified as an independent contractor hasn’t done so, they can make your business liable for back taxes, social security contributions, and other fines.

That can lead to rather costly repercussions, lawsuits, and reputational damage for the company.

So, for the right classification, a worker must meet at least four out of the seven independent activities as per the Codul Fiscal to be classified as an independent contractor.

  • The freedom of where they work and how they do it 
  • Ability to work with more than one client or company at a time 
  • Assuming all risks involved in the work 
  • Using their own intellectual and physical skills 
  • Using their own resources, tools, assets, and property or “patrimony.”
  • Members of a professional body that supervises, regulates and represents their profession. 
  • Freedom to perform work by hiring other people under them or collaborating with third parties

Perks of Hiring Independent Contractors in Romania

The biggest advantage of hiring independent contractors is that the business can focus on growth and expansion plans without having to deal with the complexity of hiring a full-time team. You don’t have to worry about their salaries, benefits, and rights, and you can invest the same efforts in making key strategic decisions for your business. Other advantages include

Flexibility

Independent contractors allow you to scale your workforce as per your business needs. When you need specialized experts for a short-term project or during peak periods, you can hire independent contractors without making any long-term commitments, and don’t have to handle full-time employees. 

This is very beneficial for startups and those companies that are expanding and don’t have the resources to deal with full-time employees or fluctuating workload demands.

Global Talent Access

Hiring independent contractors lets you access a diverse talent pool from different regions of Romania. You can easily find professionals with high skills in engineering, IT, Software development, tech, and customer support. 

Hiring employees who offer similar services will be available at competitive rates, and you will also have to provide them with benefits. However, with independent contractors you can avail of their services without these additional burdens.

Lower Overheads

Also, independent contractors manage their own taxes, health insurance, and social security contributions. As a business, it’s not your responsibility to ensure they are given these benefits so you can save up considerably on the costs and allocate your finances more efficiently to other aspects of your company.

Fresh Perspectives

The independent contractors usually come in from different industries, backgrounds, and project teams. So, they bring in a lot of fresh ideas and innovative approaches. Since they are exposed to different work environments, they can provide you with sound solutions and the best industrial practices to improve productivity. 

Their services are hence quite valuable in today’s adaptable economy where we need continuous improvement. 

Reduced HR Overload

HR and administrative responsibilities like payroll processing, compliance with labor laws, and employee benefits are no longer your concern with independent contractors. You can keep your operations simple and focus on the deliverables rather than on paperwork, employee management, and documentation.

Faster Onboarding

Since independent contractors have broad experience, they can start work immediately, quickly become part of the project, and ensure fast delivery and timelines. 

They don’t need any training, adaptability guidelines, or onboarding hassle like regular employees. Moreover, they are given the flexibility to work as they desire as long as they meet the expectations. So they can find more innovative and efficient solutions and even complete the given task within tight deadlines.

Labor Laws in Romania

The employment laws fall under the Labor Code in Romania, which sets the regulations for worker classification, employment, and employee and employer relationships. Here are some key aspects of the Labor Code.

Employment Contract

The contract should always be written in Romanian. It must include the details of the employer and employee, the salary and payment method, the duration of the employment, and the conditions for the probation period.

It must also mention all the entitled time offs, vacation days, and notice period details.

Minimum Wage

The employees are entitled to a minimum wage of RON 4,050, equalling USD 845 per month (as of January 2025).

Working Hours

The standard working hours in Romania are 8 hours a day and 40 hours a week.

Paid Leaves

Employees are entitled to 20 vacation days a year during working days. They are also entitled to a 48-hour rest period (that includes the weekends). 

Notice Period

All employees are entitled to a 20-day notice period for standard positions and 45 days for managerial positions.

Social Contributions and Taxes

The employees are also responsible for the contributions as follows:

Contribution TypePercentage
Income tax10%
Health insurance10%
Social insurance25%

Tax and Compliance Practices in Romania for Independent Contractors

The independent contractors are required to pay their income taxes at a flat rate of 10% as of 2023. They are responsible for paying their social security contributions and health insurance, which are separate deductions. Hence, the total contribution to the Romanian social security system is about 25%, which includes the pension contribution as well.

VAT Requirements

Those independent contractors whose annual income exceeds €88,500, approximately USD 92,000, must register for VAT. The standard VAT rate in Romania is 19%, but there are reduced rates for specific goods or services.

How to Pay an Independent Contractor in Romania

Different payment methods are available for independent contractors in Romania.

Usually, the payments are made via bank transfers, money orders, PayPal, or paper cheques. You need to check with the contractor about their preferred payment method and ensure you both agree to the additional fees you’ll incur when making the transaction.

Payment Methods

The contractors usually submit the invoice to the employer and are paid in either of these modes:

  • Direct bank deposit 
  • Bank transfer 
  • Money orders 
  • Paper check 
  • Online money transfer services like Paypal and Wise

Some of these transactions have high transfer fees as well. So, always clarify with the independent contractor about how they would want to make the payment to ensure you are not managing multiple payment methods at once.

Top Independent Contractor Providers in Romania

Romania today is the hub of skilled independent contractors in different industries. The country has high education standards and competitive rates, and you can access a diverse pool of experts in sectors like IT, software development, marketing, and engineering.

How do you access these individuals? The answer is via independent contractor providers. Here are the top independent contractors providers in Romania; let’s take a look at their services and key features.

Remote People

Remote People homepage new

Remote People provides Employer of Record (EOR) services that enable companies to hire talent in Romania quickly and compliantly.

The platform manages onboarding, payroll, and HR administration while ensuring full alignment with local labor and tax laws. With its local expertise and streamlined processes, Remote People helps businesses expand into Romania efficiently and with confidence.

Oyster

Oyster HR homepage new

It is a comprehensive platform for the global workplace that hires, pays, and manages employees and independent contractors. Currently, it has operations in over 180 countries and provides EOR services.

Oyster provides payroll processing and wage management services in over 120 currencies, ensuring timely and compliant payments in Romania. It also facilitates hiring international contractors. Also, they assist the new businesses in drafting the service contract ensuring it’s complaint with the statute.

Rippling

Rippling homepage new

If you are looking for one platform that provides all kinds of HR, finance, and IT operations, then Rippling is the right place. At Rippling, businesses can find comprehensive solutions for handling their domestic and international independent contractors and all the required assistance.

Rippling provides payroll processing in over a hundred countries, ensuring you remain compliant with local tax laws. There are different tools for attendance tracking, benefits administration, performance management, and onboarding of independent contractors and employees on the platform. 

Moreover, the company manages and gives software access and security protocols to employees as well as independent contractors where applicable with streamlined IT operations. The platform is also highly integratable and can work with Slack, G Suite, and Salesforce.

Deel

Deel Homepage new

Deel is a well-reputed Global HR platform that simplifies hiring and payroll processing. It works in over 150 countries and provides extensive support to employers, ensuring that it remains in line with local labor laws. It also has automated invoicing and can integrate with other accounting and HR systems for data management and reporting.

Take Your Business to New Heights with Independent Contractors in Romania

If you’re looking to build a skilled, cost-effective, and experienced workforce, you’ve come to the right place. The independent contractors are flexible, offer specialized services, and can meet your expectations within the given deadlines.

If you are looking for independent contractors in Romania and don’t know where to start, contact us at Remote People today. We will connect you with the right individuals at much-discounted rates than others. Contact us today to get your free proposal. 

Frequently Asked Questions

To ensure you pay the contractors accurately, make sure you understand taxes and VAT requirements. 

 

Make sure to mention the payment method and terms of the payment, like how and when it is to be made, in the employment contract to avoid any problems. 

 

If you're worried about the rate, ask the independent contractor providers or Remote People about the current market rates and plan accordingly.

Yes! If at any time you feel you want the independent contractor to become part of your company or employee, you can make the necessary adjustments and transition them. 

 

You'll have to terminate the existing contract and draft a new employment contract with them stating the wage, benefits, and other perks they will be given as regular employees.

 

Also, make sure you notify the regulatory authorities about it which in Romania are the National Agency for Fiscal Administration (ANAF), General Directorate for Public Finances (DGFP), and Labor Inspectorate (Inspecția Muncii).

There are many independent contractor providers in Romania, such as Deel, Remote, etc. They have access to Romania's talent pool and can connect you with the required independent contractors for your business.