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Currency

Romanian Leu (RON)

Languages

Romanian

Minimum wage

RON 4,050 per month

Employment cost

~20–25% employer social costs

Working hours

40 hours per week

TAX

Flat income tax + social contributions

Probation period

Up to 3 months

Paid leave days

Min. 20 working days per year

IconHiring in Romania

Romania offers a well-educated workforce with strong technical capabilities and competitive labor costs. Before hiring, employers must understand statutory employment rules, social contributions, tax obligations, and mandatory benefits under the Romanian Labour Code.

Employment in Romania requires compliance with wage rules, written contracts, working hours, leave entitlements, and local reporting requirements.

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Note: Information is general only and not legal advice. Always confirm with local counsel.

IconEmployment Contract

In Romania, employment contracts must be in writing and drafted in the Romanian language. Contracts may be indefinite-term, fixed-term, full-time, or part-time, depending on business needs and legal conditions. Each contract must clearly define employee and employer details, job responsibilities, salary, working hours, leave, and notice periods.

Notice periods: Typically 20 working days for non-management roles and up to 45 working days for management roles.

Termination of employment: Employment may end via expiration, mutual agreement, resignation, or dismissal. Dismissal must follow strict legal procedures supported by valid reasons—economic, disciplinary, or performance-related.

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Note: Information is general only and not legal advice. Always confirm with local HR counsel.

IconEmployee Benefits

Employee benefits in Romania include mandatory social contributions that fund pensions, healthcare, unemployment, and work accident insurance. Employer social costs typically add 20–25% on top of gross salary. Many companies also offer competitive perks.

Mandatory benefits:

  • State pension
  • Public healthcare coverage
  • Unemployment insurance
  • Work accident insurance

Common perks:

  • Meal vouchers
  • Private medical insurance
  • Transportation allowance
  • Flexible or remote work benefits
  • Performance bonuses

Leave policies:

  • Minimum 20 working days of annual leave
  • Sick leave
  • Maternity, paternity, parental leave
  • Statutory public holidays
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Note: Always confirm benefit obligations with Romanian HR experts.

IconTaxes in Romania

Romania applies a flat personal income tax on employment income, along with mandatory employee and employer social contributions. This structure makes payroll predictable and easier to manage.

Employees are subject to:

  • Flat income tax
  • Social security contributions
  • Health insurance contributions

Employers must calculate and withhold all contributions and submit monthly reports.

Note: Confirm rates with updated Romanian tax legislation.

IconPayroll in Romania

Payroll Frequency: Monthly

Payroll Currency: RON

Employers must:

  • Calculate and withhold income tax and employee social contributions
  • Pay employer social contributions
  • Submit payroll reports electronically
  • Pay salaries and taxes on statutory deadlines

Payroll processes in Romania are structured and strictly regulated.

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IconWork Permits & Visas for Romania

EU/EEA citizens do not require a work permit to work in Romania. Non-EU nationals must obtain both a work permit and a residence permit. Employers are responsible for sponsoring work authorization and meeting compliance requirements.

After approval, employees can apply for the required long-stay visa. Processing typically takes several weeks to a few months.

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IconEOR & PEO Services in Romania

An Employer of Record (EOR) in Romania helps companies hire Romanian employees without setting up a local entity. The EOR becomes the legal employer while you manage day-to-day responsibilities.

An EOR in Romania helps you:

  • Hire employees without establishing a Romanian legal entity
  • Issue compliant Romanian-language employment contracts
  • Run monthly payroll and tax withholding
  • Remit statutory social contributions
  • Manage benefits, leave, and HR compliance
  • Ensure proper onboarding and documentation

PEO Services in Romania: Ideal for companies with a Romanian legal entity seeking HR, payroll, and compliance outsourcing.

  • HR administration
  • Payroll processing and benefits management
  • Compliance with Romanian labour and tax laws
  • Employee lifecycle support
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IconPayroll Calculator

A Romania payroll calculator can estimate net salary, employer contributions, employee deductions, and total employment cost.

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COUNTRY TAXES NETPAY
Icon €52,600 €430,820
Icon €52,600 €430,820

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Frequently Asked Questions

By using an Employer of Record (EOR), which becomes the legal employer and manages contracts, payroll, taxes, and compliance on your behalf.

Romanian labour law is employee-friendly, but it’s well-structured and easy to manage with the right local compliance support.

Employees are typically paid monthly in Romanian Leu (RON), with income tax and social contributions deducted at source.

The quickest option is to hire through an EOR or PEO, allowing you to onboard employees without waiting for company registration.

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