To calculate the salary and taxes in Romania please click here.
What are the minimum wage requirements?
The minimum wage is RON 2,300 per month.
Contributions & Taxes
How much are the contributions & taxes?
The individual income tax rate is 10%. Income tax is calculated according to a flat rate.
The employer cost is generally estimated at 6.25% of the employee salary.
- Labor insurance contribution – 2.25%
- Disability cost – 4.0%
What is the payroll cycle?
The payroll cycle in Romania is generally a monthly cycle, with wages usually paid by the 5th of the next month.
Is there 13th salary in Romania?
There is no statutory requirement for a 13th salary payment in Romania.
What are the main Labor Rules?
Probation period rules
The employer can set a probationary period in the employment contract of up to 30 days for operational positions or up to 90 days for managerial positions.
Compliant terminations include:
- Employee-related reasons:
- Disciplinary misconduct (in case of a severe breach, or more repeated breaches of work discipline rules or of those rules set forth in the individual employment agreement, collective bargaining agreement, or internal regulations)
- Physical/mental incapacity (as ascertained by the relevant medical bodies)
- Professional inadequacy
- Placement in police custody or house arrest for over 30 days
- Reasons unrelated to employee:
- Redundancy following workforce restructuring, based on e.g. economic, financial or organizational grounds
- Mutual agreement
- Probation period
- Expiration of employment contract
The minimum notice period is 20 days and is dependent based on the reason for termination.
- Dismissal – minimum 20 days
- Employee resignation
- Executive positions – Maximum 20 days
- Management/coordination positions – Maximum 45 days
- Termination of contract by mutual agreement – the employer may waive the notice period
Leave and Benefits
Leave and Benefits rules
Employees are entitled to paid sick leave for up to 90 days per year. The first 5 days of sick leave are paid by the employer, and the days following that are paid by the National Insurance (the payment is supported by the employer, and reimbursed by the National Insurance). This leave is paid at different rates based on the disease. The minimum salary payment is 75%, and the maximum is 100% of the salary.
Maternity leave & Paternity leave
Pregnant employees are entitled to at least 126 days of maternity leave at 85% of their average salary during the previous 6 months; leave is paid by the National Social Security fund.
Fathers are entitled to 5 days off for paternity leave within the first 8 weeks of the birth. This can be extended to up to 15 days if they participate in childcare courses.
After the maternity leave has been taken, parents are entitled to up to two years of additional childcare leave at 85% of their average salary during the 12 months prior to taking the leave (this payment is capped at 6.8 times the reference social indicator.)
Parents caring for a disabled child up to 18 years of age or a chronically ill child up to 7 years of age are entitled to 45 days of paid leave for each disabled or ill child at 85% of the employee’s average salary during the previous 6 months (this payment is capped at 12 times the monthly minimum wage).
Employees are entitled to 2 years of parental leave, and employees that are parents of children with disabilities are entitled to 3 years of parental leave. The leave is granted to the father if the mother does not benefit from this parental leave, or if she has used a part of the leave.
The National Agency for Payments and Social Inspection will pay 85% of the average net salary during this period. The minimum amount of salary paid is RON 1,250 and the maximum amount is RON 8,500.
What are the minimum vacation days?
Employees in Romania are entitled to a minimum of 20 days off per year. Employees are also entitled to the following days off for personal reasons.
Health Security & Private Insurance
Romania has compulsory public health insurance.
* Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices*
Relocation and Work Permits
Native Teams will act as your Employer of Record and apply for your work permit in the country. You will be able to upload all the needed documents in our app. Native Teams will support you by giving you regular updates on the progress until you get your work and residence permit.
How long is the Visa / Work Permit process?
2 to 4 weeks depending on the authorities and provided documents.
Which documents do you need?