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Localised employment contracts
Romania is a developing talent hub in Eastern Europe, recognised for its highly skilled, multilingual workforce and strong educational background, particularly in STEM fields. With a growing tech ecosystem, competitive labour costs, and EU membership, Romania presents an attractive opportunity for businesses seeking to expand operations or hire remote talent efficiently and compliantly.
Located in Eastern Europe, Romania is recognised for its highly educated workforce and cost-effective employment conditions for international businesses. Employers are required to comply with local regulations regarding minimum wage, employment contracts, and social security contributions.
Discover key insights on salaries, employment costs, and legal requirements for hiring in Romania. Get the full hiring guide now!
In Romania, employment contracts must be in writing and in the Romanian language. They can be unlimited, fixed-term, or part-time. Key elements include identification details, contract duration, job position, salary, payment frequency, leave entitlements, and notice period.
Notice periods: Ranging from a month to two months
Termination of employment: In Romania, employment termination can occur automatically, by mutual agreement, or through notice by one party. Dismissal must be based on genuine reasons, categorised as objective or economic.
Want to learn more about employment contracts in Romania? Get our full template now!
Employee benefits include mandatory contributions to social security, covering retirement, disability, and health insurance. Employees contribute 25% of their gross salary to social security and 10% to health insurance. Employers pay a 2.25% work insurance contribution. Additional benefits may include meal vouchers, private pension contributions, and teleworking allowances.
Want a full breakdown of all the employee benefits available in Romania?
Romania has a well-defined tax system applicable to both individuals and legal entities. Employers are responsible for withholding and remitting personal income tax and social security contributions on behalf of their employees. The current flat income tax rate is 10%, while mandatory contributions cover pension (CAS), health insurance (CASS), and the labour insurance contribution. In addition, Romania applies a standard VAT rate of 19%, with specific rules for registration and reporting based on turnover and activity.
Personal income tax rate: 10%
VAT: 19%
Tax allowances: Personal allowances, private pension contributions, and charitable donations.
Additional tax reliefs: Mandatory contributions, voluntary health insurance, trade union membership.
Employers in Romania are required to pay salaries according to the terms set out in individual or collective employment contracts, ensuring they meet or exceed the national minimum wage established by the government. Salaries are typically paid on a monthly basis, unless another arrangement is agreed upon.
Salary payment deadline: Usually the last day of the month.
Taxes and contributions payment deadline: By the 20th of the following month.
Payroll declarations deadline: By the 25th of the following month
Payroll currency: RON or EUR.
In Romania, employment is primarily governed by the Labour Code, which outlines regulations on contracts, working hours, employee rights, and termination. Key legal regulations include a standard 40-hour workweek, a minimum of 20 days of paid annual leave, and protections against unfair dismissal.
Total employment cost:
Minimum wage: RON 4,050 per month
Probation period: Up to three months
In Romania, non-EU citizens require a work permit and visa to work legally. The employer must first obtain a work authorisation from the Romanian Immigration Office. Once approved, the employee can apply for a long-stay visa for employment purposes at a Romanian consulate.
Want to learn more about obtaining visas and work permits in Romania? Get our full country handbook now, or click here to find out more!
In Romania, utilising EOR services enables you to employ individuals legally without establishing a local entity. The EOR takes over all the legal responsibilities as an official employer, including:
In Romania, using PEO services provides HR and administrative support, allowing you to remain the legal employer. PEO services are ideal for employers who already have legal entities in Romania but need support to manage their workforce operations, including:
Native Teams provides a payroll calculator tailored according to Romania’s labour laws. Using the calculator, you can easily estimate net and gross salaries, employer/employee contributions, and other mandatory deductions in the country.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
Last update: July 30, 2025
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When hiring a freelancer or gig worker in Romania, it’s important to understand that they typically operate as independent contractors and are responsible for their own tax and social security obligations. Most freelancers register as authorised individuals (PFA) or set up a small business entity. As a client, you're not liable for their contributions, but to avoid misclassification risks, it’s crucial to maintain clear boundaries—such as not imposing fixed working hours, direct supervision, or company benefits typical of an employment relationship.
