Romania
Introduction
General overview & country facts, as well as labour regulations.
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.
COUNTRY PLAYBOOK
Romania
Everything you need to know about payroll, benefits & hiring top talent in Romania
Currency
Romanian Leu (RON)
Salary payment frequency
Monthly
Capital
Bucharest
Time Zone
GMT +3:00
Official Languages
Romanian
Is English spoken?
No
Quick Links
Introduction
General Overview & Economic Facts
- Romania is a country located in the southeast of Europe
- It spans an area of approximately 238,397 km2 (92,046 mi2) and has a population of approximately 19 million
- Romania is a developing country with a high income economy which grew rapidly in the early 2000s and which is now centered around its service industry
- Its economy ranks 46th by nominal GDP (2022) and 36th by PPP (2022)
- It ranks 49th on the HDI (2019)
Why Employ In Romania?
- The main exports are vehicle parts, cars, industrial machinery, insulated wire, electrical control boards and rubber tires
- 10.31% of the population is between the ages of 15 and 24 years, with 46.26% of the population being between the ages of 25 and 54. Romania has a fairly youthful population, making it a favourable country to employ young, energetic employees
Overview Of The Labour Law
- The main sources of employment law in Romania include the Constitution, European Union Law, the Romanian Labour Code and government decrees
- The labour regulations provides the minimum terms and conditions for employment including working hours, leave, notice periods and severance pay
- Romania’s labour laws provide protection for both employers and employees
Fun Country Facts
- Romania is the home to Dracula
- Romania has a ‘merry cemetery’ where each tombstone has a poem about the life of the deceased
- Romania is the first city to have electric street lamps in Europe
Why Use Playroll Services For Romania?
- Employing in Romania requires companies to have their own legal entity in the country as well as managing payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Romania
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing your team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Social Insurance
2.25%
Pension Fund
Particular working conditions
4.00%
Special working conditions
8.00%
Normal working conditions
0.00%
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Social Insurance
25.00%
Health Insurance
10.00%
Income Tax
Income tax is calculated on worldwide income
10.00%
Employment Terms
General
Minimum Wage
- RON 2550.00 per month
Working Hours
- Maximum of 8 hours per day and 40 hours per week
- Meal Intervals are usually determined through collective bargaining agreements
- Typical working hours are 09h00 to 17h00, Monday to Friday
Overtime
- Maximum of 8 hours per week
Notice Period
In case of resignation:
- non-management positions- 20 working days
- managing employees- 45 working days
In case of dismissal:
- 20 working days
Severance Pay
- There is no statutory severance pay
- Applicable collective bargaining agreements may provide for severance pay
Probation Period
- There is no statutory probation period
- It is common to have probation periods of:
– Executive Level Positions- 90 calendar cays
– Management Level Positions- 120 calendar days
– Disabled Persons- 30 calendar days
Bonus
- There is no statutory bonus
Public Holidays
- January 1st – New Year’s Day
- January 2nd – Day after New Year’s Day
- January 24th – Unification Day
- April 22nd – Orthodox Good Friday
- April 24th – Orthodox Easter Day
- April 25th – Orthodox Easter Monday
- May 1st – Labour Day
- June 1st – Children’s Day
- June 12th – Orthodox Pentecost
- June 13th – Orthodox Pentecost Monday
- August 15th – St Mary’s Day
- November 30th – St Andrew’s Day
- December 1st – National Day
- December 24th – Christmas Eve
- December 25th – Christmas Day
- December 26th – Second Day of Christmas
Leave
Paid Leave / Vacation Days
- Paid leave
- Paid by employer
- 20 days
Sick Leave
- Paid leave
- Paid by Social Security
- 183 days
Maternity Leave
- Paid leave
- Paid by Social Security
- 126 days
Paternity Leave
- Minimum of 5 days, maximum of 15 days
- Paid leave
- Paid by Social Security
Parental Leave
- Paid leave
- Paid by Social Security
- Unlimited leave up until the child is 2 years old and 3 years old for children with disabilities
Training Leave
- Paid leave
- Paid by employer
- 10 working days or 80 hours
Extraordinary Family Events Leave
- Paid leave
- Paid by employer
- Duration determined by applicable collective bargaining agreement
Personal Leave
- Unpaid leave
- Duration determined by applicable collective bargaining agreement
Start hiring in Romania today!