Facts & stats
Romania is a southeastern European country with a population of just under 20 million and the sixth most populous nation in the European Union. Romania’s fast-growing economy and strategic location make it an attractive place to do business.
Romania also has one of the lowest costs of living in the EU. Employees in Romania can take advantage of low-cost goods as well as affordable rents. With a growing tech sector, Romania is an attractive option for many digital nomads and remote workers.
Residents of Romania can also enjoy the rich natural beauty of the region’s beautiful mountains, rivers, and Black Sea coastline.
Grow your team in Romania with Remote
To employ in Romania, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Romania can get complicated, especially without established local relationships.
Remote has a fully-owned legal entity in Romania. This makes it easy for your company to employ workers in Romania quickly and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on growing your business.
Romania, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification. This can be especially complicated in Romania, where tax law is complex and certain types of employees are tax exempt.
Employing in Romania
To employ in Romania, companies must own a local legal entity or work with a global partner. Managing the tricky tasks related to HR and compliance in Romania can get complicated fast, especially if you try to keep this internal without any established local relationships.
Remote’s global employment solution makes it easy for your company to employ workers in Romania and stay compliant with all relevant labor laws. Our team of HR and legal experts takes on the responsibilities involved with international employment so you can focus on hiring top talent and growing your business.
|Date||Holiday Name||Extra information|
|New Year’s Day|
|Day after New Year's Day|
|Day of the Unification of the Romanian Principalities and National Union Day|
|Good Friday (Eastern)|
|Orthodox Easter Monday|
|Romanian Independence Day|
|Descent of the Holy Spirit|
|Saint Mary’s Day|
|Feast of Saint Andrew|
|2nd Day of Christmas|
There are three minimum-wage classifications in Romania: Construction jobs, jobs requiring advanced education, and jobs not requiring advanced education. In 2021, those rates are as follows:
- RON 2300/month for non-graduate positions
- RON 2350/month for graduate positions
- RON 3000/month for construction positions
- For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
We can help you get a new employee started in Romania fast. The minimum onboarding time we need is only one week.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
Competitive benefits package in Romania
Besides providing your employees with all statutory benefits in Romania, Remote can advise on and arrange for custom benefits and perks for your employees upon request.
Taxes in Romania
Learn how employment taxes affect your payroll and your employees’ paychecks in Romania.
Employees pay 10% in Personal Income Tax (PIT), 25% pension, and 10% health insurance. Funds are withheld from paychecks and paid to the government by the employer on a monthly basis.
There are some employees exempt from the PIT. These currently apply to eligible in these categories: IT, R & D, People with Disabilities, Construction. In each case, specific provisions must be met.
Employers must also make contributions of 2.25% for labor insurance for all workers and pension contributions of 4% or 8% for each employee depending on the circumstances.
Types of leave
All employees are entitled to at least 20 vacation days per year in addition to national holidays. Employees under 18, who work in hazardous environments, or who are blind or disabled are entitled to an additional three days leave.
The employee can anticipate their PTO by taking it before it is accrued as long as the employer agrees. If the employee leaves before they have a negative balance, leftover leave will be deducted from their payroll.
If the employee is not able to take all the days off within the year, the employer is obliged to rollover and grant the annual leave not taken, within a period of 18 months (extended to 3 years after jurisprudence).
Employees are entitled to five days sick leave at 75% of their salary, paid by the employer. They may be eligible for up to 183 days paid leave paid for by the government. The additional time depends on the industry and other factors. Employees must provide a doctor’s note and notify the employer within 24 hours of issuance of the note.
If the sickness leave starts on a non-working day, the employee must inform the employer about the condition on the next working day available.
Employees can take unpaid leave for personal issues.
Parents may take up to 45 days at 75% pay to care for a sick child up to seven years old, a disabled child up to 18 years old, and a seriously ill child up to 16 years old.
Pregnant employees are entitled to 126 days off beginning 63 days before the estimated due date. 42 days are compulsory. Employees on maternity leave are paid at 85% of their salary by the government.
Fathers are entitled to five days paternity leave after the birth and before the child is eight weeks old. They may apply for a one-time additional five days of leave by taking a child care course or providing proof that they are medical professionals with knowledge of child care. Additional leave may be granted in the case of multiple births. Paternity leave is paid at 100% by the employer.
Parents are entitled to 12 months parental leave before the child is two years old at 85% of their salary paid for by the government. When one parent applies for and is given leave, the other parent is automatically granted one month of that leave. At least one month of the leave must be taken by each parent. If that is not done, then only 11 months may be taken by the other parent.
- Leave for
Women undergoing in-vitro fertilization are eligible for three days leave. They receive one day of leave for the ovarian puncture and two days leave starting the day of the embryo transfer.
- Exceptional Family
Employees are entitled to paid leave for exceptional family events such as deaths and weddings. The length of leave is determined by the event, local laws, or collective bargaining agreements.
For the purposes of employment contracts, Romanian law distinguishes between managerial positions and operational positions.
Employment termination can happen at the end of a contract or probation period, by request of the employee, or by request of the employer.
Termination by request of the employer before the end of an employment contract can be done for several reasons including physical or mental inability to work, professional inadequacy, and redundancy. The employer is required to provide reasons for dismissal in writing.
Restrictions on Termination
Employees cannot be terminated during leaves, during temporary disability, during quarantine, or during pregnancy if the employer knew about the pregnancy.
Employees have the right to at least 20 days of notice before termination. Employees should give 20 days notice before leaving an executive-level position and 45 days for a management position.
Severance pay is not required by law in Romania.
Probation periodsOpen term probation period
The probation period when having an employment contract for an open term cannot exceed:
- 30 calendar days for disabled persons
- 90 calendar days for operational positions
- 120 calendar days for management positions
The probation period in case of a fix term employment agreement cannot exceed:
- 5 working days, for an agreement that does not exceed 3 months
- 15 working days, for an agreement between 3 and 6 months
- 30 working days, for an agreement exceeding 6 months
- 45 working days, for an agreement for more than 6 months