Hire employees and contractors in Romania
Outstaffer’s guide to employing in Romania.
Facts & stats
Romania is a southeastern European country with a population of just under 20 million and the sixth most populous nation in the European Union. Romania’s fast-growing economy and strategic location make it an attractive place to do business.Romania also has one of the lowest costs of living in the EU. Employees in Romania can take advantage of low-cost goods as well as affordable rents. With a growing tech sector, Romania is an attractive option for many digital nomads and remote workers.Residents of Romania can also enjoy the rich natural beauty of the region’s beautiful mountains, rivers, and Black Sea coastline.
- Capital city
- Bucharest
- Currency
- Romanian leu (L, RON)
- Official Languages
- Romanian
- Population size
- 19,317,984 (est. Jan 1, 2020)
- Ease of doing business
- Very Easy
- Cost of living index
- $$ (98 of 139 nations)
- Payroll frequency
- Monthly
- VAT - standard rate
- 19%
- GDP - real growth rate
- 4.2% (2019)
Tech Talent in Romania
Romania has established itself as a rising star in the world of tech talent. With a rich pool of skilled software developers, engineers, and IT specialists, the country is becoming increasingly attractive to both startups and established tech giants. Romanian universities excel in producing graduates well-versed in computer science and engineering, while the country's favorable business environment and competitive labor costs have spurred further growth in the tech sector. Cities like Bucharest and Cluj-Napoca have witnessed a surge in tech innovation, fostering a vibrant ecosystem of startups and IT companies. Romanian tech talent is known for its proficiency and adaptability, making it a valuable asset in the global tech landscape.
Grow your team in Romania with Outstaffer
Looking to employ workers in Romania? Companies hiring in Romania must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Outstaffer can employ your team in Romania on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Romanian team. You can also pay contractors now in Romania with Outstaffer.
Minimum wage
There are three minimum-wage classifications in Romania: Construction jobs, jobs requiring advanced education, and jobs not requiring advanced education. In 2021, those rates are as follows:
- RON 2300/month for non-graduate positions
- RON 2350/month for graduate positions
- RON 3000/month for construction positions
Payroll cycle
For customers of Outstaffer, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
Onboarding time
We can help you get a new employee started in Romania fast. The minimum onboarding time we need is only 8 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Outstaffer platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Outstaffer has a payroll cut-off date of the 10th of the month unless otherwise specified.
Employing in Romania
To employ in Romania, companies must own a local legal entity or work with a global partner. Managing the tricky tasks related to HR and compliance in Romania can get complicated fast, especially if you try to keep this internal without any established local relationships.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off.
To employ workers in Romania, contact Outstaffer to learn more about your options.
Risks of misclassification
Public holidays
Below are national public holidays applicable for all regions in this country
Jan 1
New Year's Day (Anul Nou)
Apr 17
Orthodox Easter Monday (A doua zi de Paște ortodox)
Jun 15
Assumption Day (Adormirea Maicii Domnului)
Jan 2
New Year Holiday (A doua zi după Anul Nou)
May 1
International Worker Day (Ziua Munci)
Nov 30
Feast of Saint Andrew (Sfântul Andrei)
Jan 24
Union of the Romanian Principalities (Ziua Unirii Principatelor României)
Jun 1
Children's Day (Ziua Copilului)
Dec 1
Great Union Day (Ziua Marii Uniri)
Apr 14
Orthodox Good Friday (Vinerea Mare)
Jun 4
Orthodox Whit Sunday (Rusalii)
Dec 26
Christmas Day (Crăciunul)
Apr 16
Orthodox Easter Sunday (Paște ortodox)
Jun 5
Orthodox Whit Monday (A doua zi de Rusalii)
Dec 26
Second Day of Christmas (A doua zi de Crăciunul)
Competitive benefits package in Romania
Our benefits packages in Romania are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Private health insurance
Supplemental dental insurance
Supplementary vision insurance
Supplemental maternity insurance
Supplemental screening & vaccine insurance
Additional paid holidays
Flexible work schedule
Employee engagement funds
Taxes in Romania
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Romania.
Employer
- 2.25% - Insurance contribution for work
- 0.47% - Medical leave Indemnities
- 1.08% - Residual collection - work insurance
- 0.27% - Romanian guarantee fund
- 0.38% - Unemployment indemnities
- 0.05% - Work accident or professional disease indemnities
- RON 60.00 - Mandatory Health check (flat payment of RON 60 on top of the base annual salary)
- RON 50.00 - Work medical certificate (flat payment of RON 50 on top of the base annual salary)
Employee
- 25% - Pension insurance contribution
- 10% - Health insurance contribution
Types of leave
Holiday leave
All employees are entitled to at least 20 vacation days per year in addition to national holidays. Employees under 18, who work in hazardous environments, or who are blind or disabled are entitled to an additional three days leave.
The employee can anticipate their PTO by taking it before it is accrued as long as the employer agrees. If the employee leaves before they have a negative balance, leftover leave will be deducted from their payroll.
If the employee is not able to take all the days off within the year, the employer is obliged to rollover and grant the annual leave not taken, within a period of 18 months (extended to 3 years after jurisprudence).
Sick leave
Employees are entitled to five days sick leave at 75% of their salary, paid by the employer. They may be eligible for up to 183 days paid leave paid for by the government. The additional time depends on the industry and other factors. Employees must provide a doctor’s note and notify the employer within 24 hours of issuance of the note.
If the sickness leave starts on a non-working day, the employee must inform the employer about the condition on the next working day available.
Personal leave
Employees can take unpaid leave for personal issues.
Carers leave
Parents may take up to 45 days at 75% pay to care for a sick child up to seven years old, a disabled child up to 18 years old, and a seriously ill child up to 16 years old.
Maternity leave
Pregnant employees are entitled to 126 days off beginning 63 days before the estimated due date. 42 days are compulsory. Employees on maternity leave are paid at 85% of their salary by the government.
Paternity leave
Fathers are entitled to five days paternity leave after the birth and before the child is eight weeks old. They may apply for a one-time additional five days of leave by taking a child care course or providing proof that they are medical professionals with knowledge of child care. Additional leave may be granted in the case of multiple births. Paternity leave is paid at 100% by the employer.
Parental leave
Parents are entitled to 12 months parental leave before the child is two years old at 85% of their salary paid for by the government. When one parent applies for and is given leave, the other parent is automatically granted one month of that leave. At least one month of the leave must be taken by each parent. If that is not done, then only 11 months may be taken by the other parent.
Leave for In-Vitro fertilization
Women undergoing in-vitro fertilization are eligible for three days leave. They receive one day of leave for the ovarian puncture and two days leave starting the day of the embryo transfer.
Exceptional Family Events Leave
Employees are entitled to paid leave for exceptional family events such as deaths and weddings. The length of leave is determined by the event, local laws, or collective bargaining agreements.
Employment termination
Termination process
For the purposes of employment contracts, Romanian law distinguishes between managerial positions and operational positions.
Employment termination can happen at the end of a contract or probation period, by request of the employee, or by request of the employer.
Termination by request of the employer before the end of an employment contract can be done for several reasons including physical or mental inability to work, professional inadequacy, and redundancy. The employer is required to provide reasons for dismissal in writing.
Restrictions on Termination
Employees cannot be terminated during leaves, during temporary disability, during quarantine, or during pregnancy if the employer knew about the pregnancy.
Notice period
Employees have the right to at least 20 days of notice before termination. Employees should give 20 days notice before leaving an executive-level position and 45 days for a management position.
Probation periods
The probation period in case of a fix term employment agreement cannot exceed:5 working days, for an agreement that does not exceed 3 months15 working days, for an agreement between 3 and 6 months30 working days, for an agreement exceeding 6 months45 working days, for an agreement exceeding 6 months involving employees occupying a management position
Severance pay
Severance pay is not required by law in Romania.
Get started with Outstaffer in three easy steps
01. Book a call or sign up
Book a call with one of our Solutions Managers or create your free account. It’s quick, easy, and you’ll be ready to get started in minutes.
02. Add your people
From new hires to your existing team, onboard them seamlessly with our simple-to-use self-serve platform
03. Dedicated onboarding
Our dedicated team is here to guide you every step of the way ensuring you’re confident, supported, and set up for success.