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How to hire and pay employees in Romania
Slasify
Jun 21, 2025
| Key Takeaways |
|---|
| 1 Romania offers a tech-savvy workforce and a favorable business environment, making it ideal for companies scaling in Central and Eastern Europe. |
| 2 Employers must comply with Romania's payroll, tax, and contribution system, including a flat 10% personal income tax and mandatory employee contributions for health and social insurance. |
| 3 Payroll is processed monthly, with salaries paid on the agreed date in the employment contract or internal regulations. |
| 4 The national minimum wage is RON 3,700 per month, with no statutory bonuses required. |
| 5 Termination rules differentiate between reasons related or unrelated to the employee, with notice periods typically 20 days and severance pay terms agreed between employer and employee. |
| 6 Standard working hours are 40 hours per week, with a maximum of 48 hours including overtime. Employees are entitled to breaks, daily rest, and weekly rest periods. |
| 7 Employees receive 20 working days of paid annual leave plus public holidays, with compensatory rules for unused leave due to sickness or other reasons. |
| 8 Romania provides family leave including 126 days maternity leave, 10 days paternity leave, and parental leave for childcare up to 2 years (or 3 years for disabled children). |
| 9 Probation periods last up to 90 days for execution roles and 120 days for management roles, with written termination allowed during this period without notice. |
| 10 For seamless hiring, payroll, compliance, and EOR support in Romania, Slasify provides end-to-end HR solutions across 150+ countries. |
Discover the global hiring and employment landscape in Romania – one of Europe's fastest-growing economies, offering a competitive edge with its tech-savvy workforce and favorable business environment. Romania is an attractive destination for companies seeking to scale in Central and Eastern Europe.
Personal Income Tax
Personal income in Romania is taxed at a flat rate of 10%.
Local Tax
There are no local taxes on employment income in Romania.
Statutory Contributions
Employer Contributions
| Contribution rate | Note | |
|---|---|---|
| Labor Insurance (CAM) | 2.25% | |
| Social Insurance (CAS) | N.A. | Employers are only required to make contributions for social insurance under certain working conditions (4%–8%). |
Employee Contributions
| Contribution rate | |
|---|---|
| Health Insurance (CASS) | 10% |
| Social Insurance (CAS) | 25% |
Payment of Wages
An employee's salary must be paid at least once a month, on the date established in the individual employment contract, collective agreement or internal regulations, as the case may be.
Minimum Wage
Effective July 1, 2024, the minimum wage in Romania is set at RON 3,700 per month.
Statutory Bonus
There are no statutory bonuses in Romania.
Termination
An employment contract may be terminated by law, following a mutual agreement or as a result of the unilateral will of one of the parties, in the cases and under the limiting conditions provided by law.
| Dismissal for reasons unrelated to the employee | Dismissal for reasons related to the employee |
|---|---|
| Refers to those determined by the termination of the job held by the employee, provided that the termination is effective and have a real and serious cause. | The employee has committed a serious violation or repeated violations of the rules of labor discipline or the employment contract, collective agreement or internal regulation |
| The employee is under preventive or house arrest for more than 30 days, under the conditions of the Code of Criminal Procedure | |
| The employee are not able to fulfill the duties corresponding to the job held due to a physical and/or mental unfitness; or | |
| The employee does not correspond professionally to the workplace in which they are employed. |
Prior to dismissing employees for reasons related to the employee, the proper procedure as laid out in Articles 62–64 Labor Code must be followed.
On the other hand, resignations can be done by written notice, with the employer being obligated to register the employee's resignation. No justification is needed for resignations.
Notice Period
Employers dismissing their employees for reasons not attributable to the latter shall observe a notice period that is not less than 20 days.
Employers are also obligated to observe the 20-day notice period if the reason for dismissing an employee is their inability to fulfil their duties due to physical and/or mental unfitness, or when the employee is not professionally compatible with the workplace in which they are employed.
For resignations, the notice period shall be as agreed in the employment contract, though it cannot be longer than 20 working days for employees with executive functions or 45 working days for employees in management positions.
Severance Pay
The minimum level of severance required are not expressly provided by Law. The parties to an employment contract may come to agreement on the terms relating to the provision of severance payment.
Probationary Period
A probationary period to check the employee's skills at the conclusion of the individual employment contract can be established once for up to the following limits:
| Execution functions | Management functions |
|---|---|
| 90 calendar days | 120 calendar days |
During or at the end of the probationary period, the individual employment contract can be terminated exclusively by a written notification, without notice, at the initiative of either party, without the need to give reasons.
The employee may be subject to a new probationary period in the situation where they start, with the same employer, in a new position or profession, or are to perform the activity in a workplace with difficult, harmful or dangerous conditions.
It is prohibited to establish a new probationary period if, within 12 months, a new individual employment contract is concluded between the same parties for the same position and with the same duties.
Work Time Rules
Standard Working Hours
Normal working hours in Romania are subject to a maximum of 8 hours per day and 40 hours per week.
The maximum legal working time, including overtime, cannot exceed 48 hours per week unless the employer chooses to average the employee's working time over a specified reference period.
Break Period
In cases where the daily duration of working time is greater than 6 hours, employees have the right to a meal break and other breaks, under the conditions established by the applicable collective labor agreement or by internal regulations.
Unless otherwise provided in the applicable collective labor agreement and internal regulations, breaks shall not be included in the normal daily duration of working time.
Furthermore, employers are also obligated to grant nursing employees break periods of an hour each, twice a day, until their child is a year old. These breaks shall be included in the employee's working time and do not reduce salary income.
Note: At the employee's request, these breaks may be replaced by the reduction of their normal working hours by 2 hours daily.
Overtime
Overtime work cannot be performed without the employee's consent, except in the case of force majeure or for urgent work aimed at preventing accidents or removing the consequences of an accident.
Overtime work shall be compensated by a compensatory paid time off within 90 calendar days after the performance of the overtime work.
If the granting of compensatory time off is not possible, the employee shall be paid an overtime premium of at least 75% of their basic salary.
Weekly Rest Days
Employees shall be entitled to a daily rest period of 12 consecutive hours and a weekly rest period of 48 consecutive hours, which usually falls on Saturday and Sunday.
Employees may be required to work on their weekly rest days in the following circumstances:
| Circumstances | Compensation for work on rest days |
|---|---|
| In case the rest on Saturdays and Sundays would harm the public interest or the normal performance of the activity, the weekly rest may be granted on other days established by the applicable collective agreement or by internal regulations. | A alary increase established by the collective agreement or, as the case may be, by the employment contract |
| In exceptional situations, weekly rest days may be granted cumulatively after a period of continuous activity that cannot exceed 14 calendar days. This must be done with the authorization of the territorial labor inspectorate and with the agreement of the union or the employees' representatives. | Double the compensation due for overtime, i.e. a premium of at least 150% of their basic salary. |
| In the case of urgent works, the immediate execution of which is necessary to organize measures to save the employer's persons or property, to avoid imminent accidents or to remove the effects that these accidents have produced on materials, installations or buildings unit, the weekly rest period may be suspended for the personnel required to carry out these works. | Double the compensation due for overtime, i.e. a premium of at least 150% of their basic salary. |
Holiday and Leave Entitlements
Public Holidays
If days off are not granted for justified reasons, employees shall benefit from at least a 100% increase to their basic salary for the work performed on public holidays. There are 17 days of public holidays in Romania for 2024.
| Holiday | Date |
|---|---|
| New Year Holidays | January 1–2 |
| Epiphany | January 6 |
| Synaxis of St. John the Baptist | January 7 |
| Union of the Romanian Principalities | January 24 |
| Labor Day | May 1 |
| Orthodox Good Friday | May 3 |
| Orthodox Easter Sunday | May 5 |
| Orthodox Easter Monday | May 6 |
| Children's Day | June 1 |
| Orthodox Whit Sunday | June 23 |
| Orthodox Whit Monday | June 24 |
| Assumption | August 15 |
| Feast of St. Andrew | November 30 |
| Great Union Day | December 1 |
| Christmas Holiday | December 25–26 |
Annual Leave
Employees shall be entitled to at least 20 working days of paid annual leave, with employees working in difficult, dangerous or harmful conditions, disabled employees and minor employees being entitled to at least 3 additional days of annual leave.
| Unused annual leave due to sickness | Unused annual leave due to other reasons |
|---|---|
| In the situation where the employee's temporary incapacity for work is maintained for the entire period of a calendar year, the employer is obligated to grant the annual leave in a period of 18 months starting from the year following the one in which the employee was on medical leave. | If the employee, for justified reasons, cannot take, in whole or in part, the annual leave to which they were entitled in the respective calendar year, the employer is obligated to grant the unused leave in a period of 18 months starting from the year following the one in which the right to annual leave arose. |
Sick Leave
Employees covered by the social insurance system shall be entitled to 183 days of sick leave per year, with a possible 90-day extension.
The pay during a qualifying employee's sick leave period shall be covered by the employer for the first 5 days, and by the National Social Security Fund for the remaining days.
Maternity Leave
Employees shall be entitled to 126 days of maternity leave, of which 42 days must be taken after giving birth. The employee shall be obligated to notify their employers of their condition in writing and submit any relevant medical documents attesting to their condition.
Moreover, up to 120 days of maternity risk leave may be granted for the protection of the employee's health and safety and/or those of their fetus or child.
The pay during a qualifying employee's maternity leave period shall be covered by the National Social Security Fund.
Paternity Leave
Employed fathers of newborn child shall be entitled to 10 days of paid paternity leave, which can be extended by 5 days for fathers who have obtained the relevant certificate of completion of a childcare course.
This leave shall be granted upon request during the first 8 weeks after the child's birth, justified by the child's birth certificate, which shows the employee's paternity.
Parental Leave
The individual employment contract can be suspended at the employee's initiative to raise a child up to 2 years old or, in the case of a disabled child, until reaching the age of 3. The right to suspend an employment contracts also apply to leave for the care of a sick child up to 7 years old or, in the case of a disabled child, for intercurrent conditions, until the age of 18.
The pay during a qualifying employee's parental leave period shall be covered by the National Social Security Fund.
Other Leave
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Carer's Leave | Paid | 5 working days per year | For employees to provide care or support to a relative or a member of their household who requires such care due to a serious medical problem |
| Family Emergency Leave | Paid | 10 working days per year |
For family emergencies caused by illness or accident that requires the employee's presence, provided that the employer is informed in advance. The period of absence shall be recovered in accordance with the agreement between the parties. |
| IVF Leave | Paid | 3 days per year |
For employees undergoing in vitro fertilization procedure, and the leave shall be distributed as follows: 1 day on the date of the ovarian puncture, and 2 days starting from the date of the embryo transfer. The request for this leave must be accompanied by a medical letter. |
| Pregnancy Checkup Leave | Paid | 16 hours per month | For employees to have pre-natal consultations, as regulated under Emergency Ordinance No. 96/2003. |
| Professional Training Leave | Both | - | This leave may be granted upon the employee's request, with or without pay. Refer to Articles 154–158 of the Labor Code for more information. |
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