Romania
Before hiring
Before you hire employees in Romania, there are some key things you’ll need to know. Firstly, in Romania, it’s mandatory that employees take at least one unbroken period of 10 working days of vacation each year. During a regular work week, employees must have two consecutive days of rest.
In Romania, non-compete agreements can only be enforced for two years. Employers are required to pay employees a monthly stipend during the non-compete period.
We know keeping track of all this might sound overwhelming—but it doesn’t have to be. A solution like Oyster eliminates the barriers for you. With Oyster, you can automate compliance across 180+ countries, easily managing HR and payroll—all in one, easy-to-use platform.
Get an overview of what you need to know when hiring in Romania below.
At a Glance
CURRENCY
RON
OFFICIAL LANGUAGE
ROMANIAN
PAYROLL FREQUENCY
MONTHLY
EMPLOYER TAXES
6.25%
13th / 14th SALARY
The 13th month bonus is considered a gratuity and is not required by local law.
Good to know
- Employees in Romania get at least 20 paid vacation days per year, of which an employee must take at least one unbroken period of ten working days of vacation each year. All vacation days must be used during the year in which they are earned. The right to annual leave cannot be subject to any waiver, assignment, or limitation.
- Employers must pay employees a monthly stipend during the non-compete period. The total amount paid over the course of the non-compete period cannot be lower than 50% of the employee's gross salary during the last six months of employment.
- There is no general statutory requirement for employers to make severance payments to employees whose employment is terminated.
Employment in
Romania
Employees in Romania work eight hours a day, five days a week, totalling a maximum of 40 hours per week. Employees must have two consecutive days of rest—usually Saturday and Sunday.
The maximum legal length of working time may not exceed 48 hours per week, including overtime.
Overtime can be compensated by giving the employee paid time off equal to the overtime they’ve worked, which must be taken within 60 days of earning the overtime. Employers may instead pay an overtime premium of at least 75% of an employee’s base salary for the overtime hours worked.
In Romania, the probation period is 90 calendar days for standard positions and 120 calendar days for management positions.
In the absence of misconduct, the notice period for employers and employees must be no less than 20 days for standard positions and 45 days for management positions.
If an employee resigns, their employer has the right to waive the notice period and terminate the contract at any time before the end of the notice period.
Non-compete agreements can only be enforced for a maximum of two years after the termination of the employment contract. The agreement must clearly spell out all obligations and the employee must receive a monthly payment for adhering to the agreement.
Employers in Romania must pay the employee a monthly stipend during the non-compete period. The total amount paid over the course of the non-compete period cannot be lower than 50% of the employee's gross salary during the last six months of their employment.
Employment cost calculator
Paid time off
Employees are entitled to paid vacation leave of 20 working days per year.
In Romania, employees are entitled to five days of sick pay of 75-100% of their base salary (depending on their condition), paid for by their employer. Longer leaves are paid for by the state.
Employees who have made the required contributions to the pension and social insurance system and are covered can take up to 180 days of sick leave per year, paid at 75% of their average monthly income.
Employees who have worked for at least one month in the last 12 months are entitled to maternity leave of 126 calendar days. This is usually split into 63 days before birth and 63 after birth. The first 42 days of leave after childbirth are compulsory. During this period, employees are paid an allowance equal to 85% of their average salary during the previous six months. This is fully incurred by the National Social Security Fund.
Fathers can take five working days of paternity leave within the first eight weeks of the child's birth, which may be extended to 15 working days if they participate in childcare courses.
Employer tax
The breakdown of taxes for employers in Romania is as follows:
- Work insurance contribution: 2.25%
- Social security (pension) contributions: Hard-working conditions (4%) and special working conditions (8%)
There is no employer pension contribution for normal working conditions.
Individual tax
Employees in Romania are taxed 10% regardless of their income bracket. Employees are also taxed 25% for social security (pension) contributions and 10% which goes to a health fund.
Termination of employment
Severance pay is not mandated by Romania’s labour law.
Start hiring employees in
Romania
Setting up a business entity everywhere you want to hire a new employee isn’t scalable—it takes too long and the legal fees are high. At the same time, understanding and adhering to the local labor laws and employee expectations can be complex and time consuming. And it’s hard to find reliable information on up-to-date employment information for all the countries where you’re considering hiring. Not to mention tracking down invoices and managing employee contracts over email and spreadsheets—that gets messy fast.
We can’t afford to take risks when it comes to compliance—we need to make sure we follow the local guidelines, especially when it comes to taxes and legalities.
With Oyster, you can manage HR and payroll, and automate compliance across 180+ countries—all in one, easy-to-use platform.
