Easily manage employment in Romania

Payroll services in Romania

Romania has a growing economy with key industries in technology, manufacturing, and agriculture. With specific labor laws and tax regulations, employers in Romania must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Romania

Employers in Romania must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

• Minimum wage: Romania's national gross minimum wage is RON 4,050 per month from January to June 2026, rising to RON 4,325 per month from 1 July 2026.
• Payroll frequency: Salaries are typically paid monthly.
• Standard working hours: The standard workweek in Romania is 40 hours, spread across five days.
• Overtime: Employees are entitled to additional pay for overtime work, calculated at 175% of the regular wage for extra hours and 200% for work on public holidays.

Taxation and social security contributions

• Personal income tax: Romania has a flat income tax rate of 10%.
• Employer contributions:
• Work insurance contribution (CAM): 2.25% of gross salary.
• Employee contributions:
• Pension contribution (CAS): 25% of gross salary.
• Social health insurance contribution (CASS): 10% of gross salary.
• Income tax: 10% of taxable income (gross salary minus social contributions and applicable personal deductions).
• Corporate tax: Romania's standard corporate income tax rate is 16%. Micro-enterprises (those meeting certain turnover and employee thresholds) may be taxed at a reduced rate of 1% or 3% on revenue, depending on annual turnover. The income threshold for micro-enterprise status is €100,000 for 2026.
• Tax reporting: Employers must submit the D112 declaration — covering income tax and social contributions — to the National Agency for Fiscal Administration (ANAF) by the 25th of the following month.

Payroll compliance in Romania

• Employment contracts: All employment relationships must be formalized through a written individual employment contract (Contract Individual de Muncă), registered in the REVISAL electronic system before the employee's first working day.
• Payroll deductions: Employers are responsible for calculating and remitting employee social contributions and income tax on a monthly basis.
• Compliance with wage laws: Employers must observe minimum wage requirements, sector-specific rates where applicable, and any collective labor agreements in force. Violations can result in fines and legal liability. Employers should also monitor updates to Romania's Fiscal Code, Labor Code, and EU employment directives to remain compliant and avoid penalties.

Run payroll in Romania with Remote

Managing payroll in Romania requires close attention to social contribution rules, flat-rate income tax obligations, and labor law compliance. Employers must keep track of contribution rates, reporting deadlines, and registration requirements to run payroll accurately.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.