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 minimum wage is RON 3,300 per month.
• Payroll frequency: Salaries are generally paid monthly.
• Standard working hours: The normal workweek in Romania is 40 hours, typically spread over 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:
• Social security: 4% of the gross salary.
• Health insurance: 2.25% of the gross salary.
• Employee contributions:
• Social security: 25% of the gross salary.
• Health insurance: 10% of the gross salary.
• Corporate tax: The corporate income tax rate in Romania is 16%.
• Tax reporting: Employers must file payroll taxes and contributions with the National Agency for Fiscal Administration (ANAF) regularly.

Payroll compliance in Romania

• Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
• Payroll deductions: Employers must ensure accurate deductions for social security, health insurance, and income tax.
• Employers must stay updated on changes to Romania’s labor laws and tax regulations to avoid penalties.

Run payroll in Romania with Remote

Managing payroll in Romania requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

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.