Employer of Record (EOR) in Romania
Looking to expand your team in Romania or get the benefits of a full-time employee as a freelancer? Our EOR services got you covered in every aspect of your global work!
How does an EOR in Romania work?
If you decide to use EOR provider services when expanding in Romania, the employment duties will be divided between the EOR, Native Teams and you, the client. We’ll act as the employer on paper and take care of the administrative side of things, such as payroll processing, taxes, and salary distribution. At the same time, you’ll retain full control of your employees’ daily management or continue working and providing services to your clients as a freelancer.
Who can use EOR services in Romania?
EOR services in Romania cater to the needs of scaling businesses and freelancers looking to achieve the stability of an employee.
Features of Native Teams EOR services in Romania
Employment status
When hiring through Native Teams, your new employee will be properly employed through our entity and will receive a contract following all the employment laws and regulations of Romania.
HR administration and documentation
We will automate all the HR administration and keep the documentation of all your global employees in your Native Teams dashboard, allowing you to access everything with one click.
Global payroll
Calculating salaries, taxes, benefits, and other deductions for your global workforce can be daunting. Our payroll calculators simplify the process and allow you to manage payroll for all employees on a single platform.
Benefits
We'll ensure that your new employee receives all mandatory benefits, such as healthcare, insurance, and pension. Additionally, you can offer them extra benefits like gym memberships and wellness options!
Explore Romania’s labour laws in our hiring guide.
What legal requirements exist for employment in Romania
Employment contract
The employer must provide a written employment contract for the employee and include the terms and conditions of employment.
Work permit
Non-EU citizens require a work permit to work in Romania, which has to be obtained before they can legally work in the country.
Social security contributions
Employers must make social security contributions on behalf of their employees to the National House of Public Pensions and the National Health Insurance Fund.
Labour laws
Employers must follow Romanian labour laws, which provide minimum wage, working hours, overtime rules, holiday and leave entitlements, and other employment-related regulations.
Personal income tax
The income earned by employees is subject to personal income tax, which is levied at a flat rate of 10%.
Social security contributions
Both employees and employers must make social security contributions. The employee's contribution is 25% of the gross salary, while the employer's contribution is 2.25% of the gross salary.
Tax reporting and filing
Employers must deduct taxes and social security contributions from employee salaries and submit the payments to the relevant tax and social security authorities. Employers must also issue a monthly payslip to each employee and provide an annual tax certificate.
Please note that Romanian laws and regulations can change. So, it’s important to keep abreast of the latest developments regarding labour law.
Why choose Native Teams as your Romania Employer of Record?
With over 70,000 satisfied users and 85+ legal entities worldwide, Native Teams has positioned itself among the top EOR service providers. And here’s how — our team of experts possesses the know-how needed to craft compliant employment contracts, handle social security contributions, and manage taxes. This gives employers and individuals peace of mind, knowing that they’re fully aligned with local labour laws.
Besides the traditional EOR services, we also offer work permit/visa services for you or your employees. We handle the documentation and ensure that the application process matches international regulations. Let our experts handle the administrative tasks so you can focus on what you do best!
``What is an Employer of Record?
An Employer of Record (EOR) is a third-party organisation that assumes the legal responsibilities of employing workers for another company. The EOR manages payroll, tax compliance, and benefits and ensures adherence to local labour laws. It also helps freelancers and remote workers formalise their employment status and gain access to benefits.
What are the costs of using an Employer of Record in Romania?
EOR costs in Romania depend on factors such as the provider, the number of employees, and specific service needs. Native Teams has one of the most affordable and transparent pricing structures for your global work needs. The Employer of Record plan starts at €99 per month per employee, and the Work Payments plan starts at €19. Both plans cover all the essential tools and features needed for legal employment.
What is the difference between PEO and EOR?
An EOR takes on full responsibility for legal employment matters like payroll, taxes, and compliance, whereas a PEO shares these responsibilities in a co-employment model with the client. EORs are ideal for companies expanding into new regions without setting up a legal entity, while PEOs are better for businesses already operating in a country to optimise HR functions.
What are the responsibilities of an Employer of Record (EOR) service provider?
EOR providers act as the legal employer, managing payroll, benefits, and employment contracts while ensuring compliance with labour laws. They mitigate risks by assuming liability for employment-related issues and offer HR support, enabling businesses to concentrate on their operations.
Is using an Employer of Record in Romania legal?
Yes, using an EOR in Romania is entirely legal and aligns with Romanian labour regulations. Many international companies use EOR services to enter the Romanian market, and freelancers often depend on them to formalise their employment.
Why should I use EOR instead of opening my own company or an office in Romania?
An EOR allows companies to avoid the complexities of setting up a legal entity in Romania. The EOR handles tasks like payroll and compliance and offers the flexibility to scale operations without the difficulties of dissolving a company if plans change.
How many people can I employ in Romania?
There is no legal cap on the number of employees a company can hire in Romania as long as labour laws are followed. The number of employees you can hire depends on your business needs, financial capacity, and the ability to manage your workforce effectively.