Remote’s guide to employing in

Romania
romania flag

Make employment in Romania easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Romania, all in one easy-to-use platform.

  • Capital City

    Bucharest

  • Currency

    Romanian leu (L, RON)

  • Languages

    Romanian

  • Population size

    19,317,984

Services available in this country:
Employer of Record ProductContractor ManagementGlobal Payroll

Facts & Stats

Romania Map Illustration
  • Capital City

    Bucharest

  • Currency

    Romanian leu (L, RON)

  • Languages

    Romanian

  • Population size

    19,317,984

  • Ease of doing business

    Easy

  • Cost of living index

    $$ (98 of 139 nations)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    19%

  • GDP - real growth rate

    4.2% (2019)

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

Looking to employ workers in Romania? Companies hiring in Romania must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in Romania on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Romania team. You can also pay contractors now in Romania with Remote.

Risks of misclassification

Romania, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Romania may lead to fines and penalties for the offending company.

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 labour 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.

Minimum Wage

For 2023, the minimum gross wage in Romania is RON 3,300 per month.

Note that from 2022, employers can retain an employee on minimum wage for a maximum period of 24 months. After this time, the employer must provide a salary increase.

Payroll Cycle

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.

Onboarding Time

We can help you get a new employee started in Romania fast. The minimum onboarding time we need is only 4 working days.

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.

17 Public holidays

Jan
Monday 1 January 20241New Year's Day (Ziua de Anul Nou)
Tuesday 2 January 20242Second Day of the New Year (A doua zi a Anului Nou)
Saturday 6 January 20243Feast of the Theophany (Sărbătoarea Teofaniei)
Sunday 7 January 20244Synaxis of Saint John the Baptist (Sinaxia Sfântului Ioan Botezătorul)
Wednesday 24 January 20245Union Day (Ziua Unirii)
May
Wednesday 1 May 20246Labour Day (Ziua Muncii)
Friday 3 May 20247Orthodox Good Friday (Vinerea Mare Ortodoxă)
Sunday 5 May 20248Orthodox Easter (Pastele ortodox)
Monday 6 May 20249Orthodox Easter Monday (Luni de Paște ortodoxe)
Jun
Saturday 1 June 202410Children's Day (Ziua Copilului)
Sunday 23 June 202411Orthodox Pentecost (Rusaliile ortodoxe)
Monday 24 June 202412Orthodox Pentecost Monday (Luni de Rusalii ortodoxe)
Aug
Thursday 15 August 202413Assumption of Mary (Adormirea Mariei)
Nov
Saturday 30 November 202414Saint Andrew's Day (Ziua Sfântului Andrei)
Dec
Sunday 1 December 202415Great Union Day (Ziua Marii Uniri)
Wednesday 25 December 202416Christmas Day (ziua de Craciun)
Thursday 26 December 202417Day after Christmas (Ziua după Crăciun)

Competitive benefits package in Romania

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practising “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Romania are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Taxes in Romania

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Romania.

  • 2.25%

    Insurance contribution for work

  • 0.47%

    Medical leave Indemnities

  • 1.08%

    Residual collection - work insurance

  • 0.27%

    Romanian guarantee fund

  • 0.38%

    Unemployment indemnities

  • 0.05%

    Work accident or professional disease indemnities

  • RON 60.00 - Mandatory Health check (flat payment of RON 60 on top of the base annual salary)

  • RON 50.00 - Work medical certificate (flat payment of RON 50 on top of the base annual salary)

Types of leave

All employees are entitled to at least 20 holiday 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).

Employment termination

Termination process

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.

Notice period

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

Severance pay is not required by law in Romania.

Probation periods

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 exceeding 6 months involving employees occupying a management position

Fair Pricing in Romania

Employer of Record

Hire and pay your global team

Starting at US$599/month

for annual plans

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localised benefits

Contractor Management

Compliantly onboard and pay contractors

US$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

US$50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app