Romania provides cost-effective EU talent in technology, business services, and manufacturing, requiring compliance with the Labour Code (Law No.53/2003). Key mandates include REGES-Online employee registration, minimum wage, social security via CASS/CAS, 10% flat PIT withholding, 20+ days annual leave, maternity/paternity leave, and regulated temp-agency frameworks. EORs must handle REGES registration, monthly D112 payroll declarations to ANAF, and avoid misclassification risks triggering joint liability and penalties.
Currency: Romanian Leu (RON)
Language: Romanian (primary); English (business context)
Regulatory Authority: Ministry of Labour and Social Policy, REGES-Online Registry, National Agency for Fiscal Administration (ANAF), Social Insurance Institution (CAS/CASS), Ministry of Labour inspectorate
National statutory minimum (annual indexed); approx. RON 3,300/month (2024)
Written contract required (Romanian language); indefinite, fixed-term, or probationary
Varies: 2--30 working days depending on contract length and role
Employer burden ~6.25--10.25% (unemployment insurance 2.25%, social security 4--8% depending on conditions)
Minimum 20 working days annual; carryover rules apply (first 6 months or up to 18 months with consent)
40 hours/week standard (8 hours/day); maximum 48 hours/week including overtime
Unemployment insurance 2.25%, social security 4--8% depending on sector/risk
Flat rate 10% withheld by employer on gross taxable income
75--100% above basic wage or time-off within 60 calendar days
Employee withholding via CASS (10%); employer does not directly pay
Employee withholding via CAS (25%); employer may have 4--8% contribution depending on conditions
Romania requires written employment contracts in Romanian that clearly define job role, salary and allowances, working hours and place of work, contract type (indefinite, fixed-term, probationary), probation terms (up to 3 months), benefits (annual leave, sick pay, maternity/paternity leave) and social insurance registration, plus confidentiality/IP and non-compete clauses where reasonable, termination conditions and notice periods, and dispute-resolution terms. All contracts must be registered in REGES-Online before or on the first day of work, with ongoing updates for changes, suspensions, and terminations. Employees must be correctly classified (indefinite, fixed term, probationary) or genuinely independent contractors; misclassification can trigger requalification, back payment of wages, social contributions and tax, and joint liability. Employer contributions typically include 2.25% unemployment plus 4–8% social security on top of gross salary, while employees pay 10% income tax, 25% pension (CAS) and 10% health (CASS), all withheld and declared via monthly D112 filings to ANAF. Employees are entitled to at least 20 days’ paid annual leave, paid sick leave shared between employer and social insurance, 126 days’ paid maternity leave, 10 days’ paternity leave and state-funded parental leave, plus coverage under public pension and healthcare systems. Public holidays are fully paid, statutory social insurance and leave rights cannot be waived, and additional perks (health insurance, meal tickets, allowances) may not offset minimum legal entitlements.
Termination must follow Labour Code procedures, with written grounds and notice (typically at least 20 working days for objective dismissals, with longer notice for managers and special rules for probation, disciplinary cases, and collective redundancies). There is no universal statutory severance unless agreed in a contract or CBA, but all accrued salary and untaken leave must be paid on exit, and special protections apply to pregnant employees, those on maternity/parental leave, and union representatives. EOR providers must register as legal employers with ANAF, CAS, CASS and REGES-Online, execute compliant Romanian-language contracts, handle all registrations, monthly withholding and remittances (PIT 10%, CAS 25%, CASS 10%, employer 2.25%+), maintain working-time and payroll records, manage statutory leave and terminations, and file REGES updates within deadlines. Temporary work and employee-leasing are tightly regulated: agencies must be authorised by the Ministry of Labour, assignment durations are capped, and equal-treatment rules apply, meaning EOR structures must either operate as fully compliant temporary work agencies or demonstrate genuine independent employer control rather than acting as de facto labour-only contractors for a client’s core business.
