Romania
Hire Employees & Contractors

Romania

Compliantly hire your distributed team members in

Romania

Person working on laptop

Hiring in

Romania

isn't so simple. Borderless can help.

To hire new employees in

Romania

, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in

Romania

while staying fully compliant with local laws and compliance.

Primary Language

Romanian

Currency

Romanian leu (L, RON)

Payroll Frequency

Monthly

Public Holidays

15 days

Employer Taxes

2.25% to 10.25%

Cost of Living Index

37.4 (2023)

Statutory Leave

Up to 20 days

Sick Leave

5 days

Maternity Leave

Up to 126 days

Important: Risks of misclassification

In many countries like

Romania

, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

In Romania, there are several minimum-wage classifications: positions that do not require advanced education, those that do, construction work, and all other fields.

The rates are as follows:

  • Non-graduate positions: RON 2300 per month
  • Graduate positions: RON 2350 per month
  • Construction positions: RON 4000 per month
  • All other fields: RON 3,000 per month

Overtime Pay

Working hours are typically 8 hours per day, 40 hours per week. Monday through Friday is the standard workweek.

Overtime pay is required. It can be compensated monetarily or in the form of paid time off. Overtime is defined as hours worked outside of normal working hours. Employees may work up to 48 hours of overtime per month. Employees are compensated for extra hours worked as follows:

  • During the week: 175% of basic pay
  • Public holidays: 100% of basic pay
  • Rest days: 200% basic pay

Additional Pay

Parents may take up to 45 days at 75% pay to care for a sick child up to seven years old, a disabled child up to 18 years old, and a seriously ill child up to 16 years old.

Payroll Cycle

For all Borderless customers, employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Employer Costs & Taxes

  • 2.25%: Labor Insurance 
  • 0 to 8.25%: Pension Insurance (depending on working conditions)

Employee Costs & Taxes

  • 10%: Individual Income Tax 
  • 25%: Pension Insurance 
  • 10%: Health Insurance

Employment Information

Termination Process

Romanian law distinguishes between managerial and operational positions for the purposes of employment contracts.

Employment can be terminated at the end of a contract or probation period, at the employee's request, or at the employer's request.

Termination at the employer's request prior to the end of an employment contract can occur for a variety of reasons, including physical or mental inability to work, professional inadequacy, and redundancy. The employer is required to provide written reasons for dismissal.

Notice period

Employees are entitled to at least 20 days' notice before being terminated. Before leaving an executive-level position, employees should give 20 days' notice, and 45 days for a management position.

Probation Period

For individuals with an open-term employment contract, probation periods cannot be longer than:

  • 30 calendar days for disabled individuals
  • 90 calendar days for operational positions
  • 120 calendar days for managerial positions

In the case of a fixed-term employment agreement, the probation period cannot exceed:

  • 5 working days for an agreement of less than 3 months
  • 15 working days for an agreement of 3 to 6 months
  • 30 working days for agreements longer than 6 months
  • 45 working days for agreements longer than 6 months involving employees in management positions

Severance Details

Severance pay is not required by law in Romania.

Benefits of working in a country abroad

Borderless Benefits Packages in

Romania

When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in

Romania

Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

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