Romania
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
1,93,17,984
Facts & Stats
- Capital City
Bucharest
- Currency
Romanian leu (L, RON)
- Languages
Romanian
- Population size
1,93,17,984
- 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
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 $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
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
$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
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