Hire employees in Romania
With Nomad Global Hire PEO / EoR (Employer of Record) services, you can easily hire employees in Romania, without having to set up your own entity. No risk and fully compliant with HR support included
What to know about Romania
Romania has low taxes which makes local hiring competitive
Employer Tax
Estimated at 6.25%
Currency
RON, Romanian Lei
Available Employee Benefits
Medical insurance, Meal Vouchers, Christmas Bonus
Employee Tax
Incremental up to 45%
Payroll Frequency
Monthly over 12 payments
Main Universities
Babes-Bolyai University in Cluj, University of Bucharest, UAIC
Capital
Bucharest/Bucaresti
Population
Circa 20 Millions
Available Contracts
Fixed Term Contract, Indefinite/Permanent
Romania is a country with rich history, placed in a key strategic place in Europe. Over the past few years, Startup founding and activity has been on the rise, with Hundreds of millions invested. Over the past few years, the Central and Eastern European markets have attracted a lot of investors, due tot he relative ease to do business in the region but also because of the qualified workforce.
If you have identified a future employee in Romania or want to relocate someone there, NOMAD can manage for you the local employment for your new employees and therefor save you the complicated process of opening your own entity and managing payroll directly. We offer cost effective, risk free, compliant solutions to your hiring needs in Romania with our EOR / PEO services
Payroll, Benefits & Tax in Romania
- Minimum Wage : 2,300 RON per Month
- Employer Tax in Romania is usually 6.25%
- This includes the Social Insurance Contributions at 2.25%
- The Disability tax insurance at 4%
- Employee Tax in Romania can be high:
- Social Security (Pension) contributions at 25%
- Income Tax is at a flat rate of 10%
- Health Fund Contributions at 10%
- Overtime in Romania is accepted and payment is mandatory, which can be done in the form of extra payments or extra time off. Those can be compensated up to 150% of the standard hourly rate of the employee during the week and up to 200% during the Weekend.
- Payroll Frequency in Romania is Monthly over 12 months
- Paternity Leave is 5 days only during which the employee will get 100% of the salary.
- Maternity Leave in Romania is 126 days maximum of Paid Leave, which can only be activated for employees with at least 6 months of work in the last 12 months. Of those 126 days, 42 days after the birth of the child are mandatory. The employer will have to pay up to 85% of the salary during the leave.
- Parental Leave is up to 2 years in Romania (up to 3 years if the child has a disability). If the mother doesn’t use the allowance then the father can use it instead.
- Sick Leave is covered for up to 90 days per year for all employees. The first 5 days are paid in full by the employer and the following ones are paid by the employer but reimbursed by the National Insurance scheme. Those 90 days can be extended to 180 days in particular medical situations.
- Statutory Leave is 20 days minimum per year up
- Bank holidays: there are 15 national days in 2023 in Romania
- Termination can only be done for a valid cause in Romania, see below and through this Article
- Notice period is usually 20 days
The Romanian Labor Code is setting the framework for employment in Romania. This covers all individual and collective working relationships, Compensation and Benefits, Workers rights as well as Leave (Sick, Parental), employment Termination and Discrimination.
Onboarding and Termination in Romania
- Probation period are not mandatory under Romanian Labour Law
- Probation period in Romania however can be of a maximum of 3 months or 90 days for individuals, and up to 120 days for Management roles. Probation periods also depend on the length of the contract in Fixed Term Contract situations
- You can hire through Fixed Term Contracts, Indefinite / Permanent contract or BtoB contracts
- Employment Contracts are drafted in Romanian but can also be in English (but then has to be both at the same time)
- Learn about Work Permits in Romania here (KPMG source)
- For employment opportunities in Romania, click here (Government page)
- Termination is Romania is generally a complicated process and requires particular care. In order to be compliant, Termination can occur only for “Just Cause” as:
- By mutual agreement
- By resignation of the employee
- By expiration of contract
- By the employer on grounds of disciplinary dismissal, failure to perform in probation period, reduction of work or end of the activity, Professional Incapacity
- It is always advised to reach a Mutual Agreement to validate a Termination in Romania
- The minimum notice period in Romania is 20 days both side. Please note that Employees cannot be terminated while on Leave
- Severance payments in Romania are not mandatory
- For more detailed information on how to Terminate an employment contract in Romania, please see this article on our Resources page
Fixed Management Fee
We charge a fixed monthly fee depending on the level of the salary of the hired employee
- Local Contract Management
- Payroll Management
- Tax and Compliance
- HR Support
Employee Nomad set up fee
Everything to get you started on Nomad and ensure piece of mind for you and your new hire
- Sign up to the NOMAD Services
- Benefits Setup (if available)
- Tax authority liaisons
- An initial Deposit will be required
Estimated Employer tax costs
Employer Tax in Romania is estimated around 6.25% (may vary depending on circumstances)
- Social Insurance Contributions
- Disability Tax insurance
- Others
GET IN TOUCH