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Europe

Romania

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Employer of Record (EOR) in Romania

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Romania Introduction

Romania is a country in central Europe bordered by Bulgaria, Ukraine, Hungary, Serbia, and Moldova. It is considered a developing country with a high-income economy based predominantly on services. Romania enjoys rich natural beauty of mountains, rivers, and Black Sea coastline.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees are entitled to 126 days of paid maternity leave, usually split evenly as 63 days before the birth and 63 days after. This leave is paid by the government at a rate of 85% of the regular salary. Fathers are entitled to 5-10 days of paid leave after the birth.

After maternity leave, one of the parents can also be eligible for childcare leave (parental leave) until the child is 2 years old, as long as the employee has contributed to social security during the past year of employment.

Sick Leave

Employees who are covered by the social insurance system and have made contributions are entitled to up to 180 days of sick leave with a possible 90-day extension. The first 5 days are paid for by the employer, and covered by social insurance after that.

Paid Leave

Romania has 15 public holidays, and employees are entitled to at least 20 days of paid time off each year. Employees can also qualify for bereavement leave or leave to protect the safety of their children.

Wage Requirements and Working Hours

The minimum wage is RON 2,300 per month, and a standard workweek is 40 hours at 8 hours per day. Any work done past 40 hours per week or 8 hours per day is considered overtime and is compensated with additional paid time off or an extra benefit equal to at least 75% of the basic salary.

Termination Process

Process

The termination process depends on the employment contract and reason for termination. Employment contracts can be terminated with just cause such as misconduct or economic conditions.

Notice Period

Notice periods for termination are a minimum of 20 working days.

Severance Pay

There is no statutory requirement for severance pay unless stipulated in a collective agreement.

Additional Information

N/A

OVERVIEW
Language(s):
Romanian
Currency:
Romanian Leu (RON)
Capital City:
Bucharest
Population:
19 Million
Cost of Living Rank:
90th
VAT (Valued Added Tax):
19%
Employer TaxES
6.25%
(estimated)

★  2.25% - Unemployment Insurance

★  4% - Social Security

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 150+ countries
How Remofirst employs in Romania

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Romania get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Romania are paid on time in Romanian Leu (RON). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Romania, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.