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.
The minimum wage is RON 3,000 per month or RON 18 per hour, 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.
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 net income in the last 6 months. Fathers are entitled to 10-15 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 for 12 worked months in the last 24 calendar months.
Employees who are covered by the social insurance system and have made contributions are entitled to up to 183 days of sick leave per calendar year. The first 5 days are paid for by the employer, and covered by social insurance after that.
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.
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 periods for termination are a minimum of 20 working days.
There is no statutory requirement for severance pay unless stipulated in a collective agreement.
★ 2.25% - Unemployment Insurance
★ 4-8% - Social Security (dependent on working conditions)
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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.
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.