What Should I Know About Hiring in Romania?
There are a few crucial aspects concerning Romania’s labor laws and regulations that you should be aware of if you’re thinking about hiring remote workers. To ensure that you are in compliance with all rules and regulations and that you are providing a productive and good work environment for your employees, it is essential to be informed of local legal requirements and cultural norms.
First, you need to know that employment contracts in Romania are required by law and must include specifics like the job’s description, compensation, hours worked, paid time off, notice requirements, and termination clauses.
The employer must provide a legal reason for termination, and the amount of notice required varies according to the employee’s level of seniority. Employees in Romania are safeguarded from arbitrary termination by law.
Why Is Romania a Good Choice for Finding Remote Employees?
When thinking about the long-term feasibility of a remote workforce, Romania’s stable political environment is a significant consideration. This reliability is reassuring for businesses that want to keep their remote workers for the long haul.
The Romanian labor force is highly educated and talented, with many workers possessing advanced degrees in subjects like engineering, computer science, and mathematics. Many people in Romania are also fluent in more than one language, making them an excellent fit for distant roles that involve liaising with customers in other countries.
In addition, Romania boasts an advanced technological infrastructure, including fast and dependable internet connections and cutting-edge means of communication. This facilitates communication and teamwork amongst remote employees and their clients.
How Can Native Teams Help You Hire in Romania
Finding the right remote worker in Romania can be difficult, especially for companies unfamiliar with the local job market and employment laws. That’s why at Native Teams, we offer employer-of-record services to ensure that your business is in full compliance with all Romanian regulations, from hiring new employees to handling all of their payroll and benefits.
Hire your first Romanian employee with Native Teams.
Legal Requirements for Hiring in Romania
To calculate the salary and taxes in Romania please click here.
The current minimum wage in Romania is RON 3,000.00 per month.
Contributions & Taxes
How much are the contributions & taxes?
The employer cost is estimated at 6.25% of the employee’s salary.
Companies based in Romania, foreign corporations with a permanent establishment (PE) in Romania, and foreign companies that are tax residents of Romania due to the place of effective management all pay a standard CIT rate of 16%.
The total employee cost is 35.00%.
The rate of individual income tax is 10%. The income tax is computed using a flat rate.
What is the payroll cycle?
Payday in Romania occurs once a month, on the last business day of the month, and covers the preceding month.
Is there a 13th salary in Romania?
In Romania, the payment of a 13th salary is not mandated by law.
What are the main Labor Rules?
In Romania, the length of an employee’s probationary period is determined by the nature of the position and is outlined in the employment contract. Employees in managerial and supervisory roles typically have a longer probationary period of 120 days.
In the event of termination, a minimum of 20 calendar days’ notice is required from all employees regardless of the terms of their employment agreement.
It is also possible for employees to resign from their positions, with a maximum of 20 business days’ notice for non-management positions and 45 business days’ notice for management positions.
In the absence of a collective agreement, severance pay is not guaranteed by law in Romania.
Workers over 18 are restricted to working no more than 8 hours per day and 40 hours per week, while those under 18 are only permitted to work 6 hours per day and 30 hours per week.
Leave and Benefits
Leave and Benefits rules
There are 15 officially recognized holidays in Romania:
- New Year’s Day
- Day after New Year’s Day
- Day of the Union of Romanian Principalities
- The Good Friday
- Orthodox Easter
- Orthodox Easter Monday
- Labour Day
- Orthodox Whitsun (First day of Pentecost)
- Orthodox Whit Monday (Second day of Pentecost)
- Children Day
- Assumption Day
- St. Andrew’s Day
- National Holiday
- Second Day of Christmas
Workers who pay into the pension and social insurance system are eligible for up to 180 days of sick leave per year, with a 90-day extension available if necessary, under the country’s Labor Code terms.
Maternity leave & Paternity leave
5–10 days of paid leave for the father/partner, with an additional 5–10 days available if the employee completes an infant care course. There is no set timeframe for when the paternity leave must be taken.
Employees who lose a close relative are eligible for up to 3 days of paid mourning time off.
After an employee has taken their maternity leave, they may take additional time off to care for their child(ren) until the child turns 2 or 3 in the case of a disabled child.
What are the minimum vacation days?
Every employee is guaranteed at least 22 paid days off in the calendar year. Their vacation time is extended through April 30 of the following year.
Health Security & Private Insurance
Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.
* 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 apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.
How long is the Visa / Work Permit process?
2 to 4 weeks depending on the authorities and provided documents.
Which documents do you need?
To apply for a visa/work permit in Romania, upload the documents from our onboarding list (relocation to log in/pricing).
Why use Native Teams for Hiring in Romania?
Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:
- No paperwork: We will handle all the necessary paperwork for you.
- Save on taxes: We help you handle your taxes.
- No company set up: You can expand your business using our company entitles.
- Online onboarding: We’re here to ensure your onboarding process is trouble-free.
- No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
- Increase your profit: We assist you in growing your business and maximizing your profits.
- Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
- Local support: We can assist you in understanding and complying with the relevant local laws.
*Note: The provided information was accurate at the time of writing.