How to hire and pay EMPLOYEES IN

Romania

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Before hiring

EMPLOYEES IN
Romania

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

PUBLIC HOLIDAYS

15

(based on region;
see here
)

EMPLOYER TAXES

6.25%

of gross salary

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

Working hours and overtime

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.

Employment contracts
Probationary period

In Romania, the probation period is 90 calendar days for standard positions and 120 calendar days for management positions. 

Pensions
Notice period

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.

IP protection and non-compete agreements

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

Holidays

01 Jan

New Year's Day

01 Jun

Children's Day

02 Jan

New Year Holiday

20 Jun

Orthodox Whit Sunday

24 Jan

Union of the Romanian Principalities

21 Jun

Orthodox Whit Monday

30 Apr

Orthodox Good Friday

15 Aug

Assumption Day

01 May

Labor Day

30 Nov

Feast of Saint Andrew

02 May

Orthodox Easter Sunday

01 Dec

Great Union Day

03 May

Orthodox Easter Monday

25 Dec

Christmas Day

26 Dec

2nd Day of Christmas

01 Jan

New Year's Day

02 Jan

New Year Holiday

24 Jan

Union of the Romanian Principalities

30 Apr

Orthodox Good Friday

01 May

Labor Day

02 May

Orthodox Easter Sunday

03 May

Orthodox Easter Monday

01 Jun

Children's Day

20 Jun

Orthodox Whit Sunday

21 Jun

Orthodox Whit Monday

15 Aug

Assumption Day

30 Nov

Feast of Saint Andrew

01 Dec

Great Union Day

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 between 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.

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wherever they work in the world.

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