Romania offers strong IT and engineering talent at competitive cost, and a payroll model unlike most of Europe: employees pay almost all social charges, so the employer adds only 2.25%. Recent changes matter. The IT, construction and agri-food tax exemptions ended on 1 January 2025. A fiscal package from 1 August 2025 cut sick-leave benefits. Fines for undeclared work rose to RON 20,000–40,000 per person from January 2026, and the minimum wage rose to RON 4,325 on 1 July 2026. The EU Pay Transparency Directive is not yet in force: the transposition bill is still pending in the Senate after the 7 June 2026 deadline.
Currency: Romanian Leu (lei RON)
Language: Romanian (official; contracts and work documents must be in Romanian, bilingual versions allowed)
Regulatory Authority: ANAF (tax and contributions), the Ministry of Labour and Social Solidarity, the Labour Inspection (ITM) and ANSPDCP (data protection)
Last updated: October 2026
RON 4,325 gross a month from 1 July 2026 (RON 4,050 until 30 June). A tax relief of RON 200 a month applies to minimum-wage earners in the second half of 2026.
Written, in Romanian and signed before work starts. It must be registered in REGES-Online by the day before the start date. Fixed-term contracts are capped at 36 months.
Up to 90 calendar days for most roles and 120 days for management. Shorter limits apply to fixed-term contracts. Either side can end the contract during probation by written notice.
Usually just 2.25% on top of gross salary. Employees bear most social charges, so gross salaries are set higher than in other EU countries to reach the same net pay.
At least 20 working days of annual leave, plus 17 public holidays. Paternity leave is 10 working days, or 15 with a childcare course, paid by the employer.
8 hours a day and 40 hours a week. The maximum is 48 hours a week including overtime, averaged over 4 months, or up to 12 months by collective agreement.
A 2.25% work insurance contribution (CAM) with no cap. Jobs in uncommon or special working conditions add 4% or 8% for social insurance.
Flat 10% on gross pay after the employee's 25% pension (CAS) and 10% health (CASS) contributions and any personal deduction. Net pay is about 58.5% of gross.
Overtime is first compensated with paid time off within 90 calendar days. If that is not possible, a premium of at least 75% of base salary applies.
At least 20 working days' notice for redundancy, incapacity or medical unfitness. Dismissal needs valid Labour Code grounds. There is no statutory severance unless an agreement provides it.
Outstanding salary and unused leave must be paid on termination. The termination must be entered in REGES-Online within 5 working days.
Meal vouchers are optional, capped at RON 45 a day and frozen at that level until at least March 2027. They carry 10% income tax and 10% CASS, but not CAS.
2025–2026 updates
Draft the employment contract in Romanian, or bilingual, and sign it before work begins. Register it in REGES-Online, the electronic employee register, by the day before the employee starts. Missing this step counts as undeclared work and now carries fines of RON 20,000–40,000 per person. Fixed-term contracts are allowed only in cases listed in the Labour Code and are capped at 36 months. Agree a probation period of up to 90 days, or 120 for managers.
Pay salary at least monthly on the date set in the contract. Each month, file the D112 declaration and pay income tax and contributions by the 25th of the following month. Remember that the employee bears 25% CAS, 10% CASS and 10% income tax, while the employer pays only 2.25%. Set gross salaries with this in mind, as net pay is roughly 58.5% of gross. Foreign employers without an entity can register with ANAF or use an EOR.
Employees get at least 20 working days of annual leave and 17 public holidays. The employer pays the first 5 days of sick leave, and the health insurance fund pays from day 6. Maternity leave is 126 days, and parental leave can last up to 2 years, paid by the state. There is no statutory 13th salary. Meal vouchers of up to RON 45 a day are a common, tax-efficient benefit.
Dismissal is allowed only on Labour Code grounds, such as disciplinary reasons, professional incapacity, medical unfitness or genuine redundancy. There is no termination at will. Give at least 20 working days’ notice for non-disciplinary dismissals, and run a formal investigation before any disciplinary dismissal. Severance is not required by law unless an agreement provides it. Employees on sick leave, maternity or childcare leave, or annual leave cannot be dismissed. Collective redundancies need consultation and authority notice.
Every employer needs internal regulations, OSH and fire-safety training, and occupational medicine checks. Employers with 50 or more staff must run a whistleblowing channel. Follow GDPR and Law 190/2018: employee monitoring needs proven necessity and prior consultation with the union or employee representatives. Start preparing a clear pay system and job evaluation now, as the pay transparency law will require pay ranges for candidates and ban salary-history questions once it passes.
Download the full Romania Payroll & Employment Guide 2026 (PDF)
For detailed hiring information, customised employment guidance or support with your Romania hiring, please reach out to our team. We provide compliant employment contracts, payroll processing and tax remittance, social security registration and reporting, benefits administration, and onboarding and offboarding support. See our EOR pricing: flat from $349 per employee, per month.
FAQ
Yes. An Employer of Record such as StratEdge Global becomes the legal employer and handles contracts, REGES-Online registration, payroll, contributions and compliance, while you direct the day-to-day work.
The employer pays only the 2.25% work insurance contribution. Employees bear 25% CAS, 10% CASS and 10% income tax, so net pay is about 58.5% of gross. Gross salaries are set higher to cover this.
No. The income tax exemption for IT, construction and agri-food employees ended on 1 January 2025. Standard income tax and contributions now apply.
Not yet. The pay transparency bill is still pending as of October 2026. Once in force, employers must share pay information before the interview and may not ask about salary history.
