Capital
Bucharest
Currency
Romanian New Lei
Language
Romanian
Population
19,237,691
GDP Growth
7.26%
GDP World Share
0.26%
Payroll Frequency
Monthly
Working Hours
40 hours/week

See how hiring works with an Employer of Record in Romania

MBRemote is your Employer of Record in Romania — hire locally in 3 business days, no entity needed.

Why Romania

Why companies use an Employer of Record in Romania

MBRemote's Employer of Record Romania service lets you hire Romanian employees without establishing a local entity — fully compliant from day one. Romania has emerged as one of Eastern Europe's most compelling hiring destinations, combining a highly educated technical workforce, a flat 10% income tax rate, and significantly lower employment costs than Western EU markets. With major tech hubs in Bucharest, Cluj-Napoca, and Iași, Romania offers deep talent pools in software engineering, finance, and business services — all within EU jurisdiction since 2007.

Low-Cost EU Market

Flat 10% income tax and employer costs among the lowest in the EU — with salaries well below Western European benchmarks.

Strong Tech Talent Pool

Cluj-Napoca, Bucharest, and Iași rank as top emerging tech hubs. Romania produces 8,000+ IT graduates per year.

Full EU Compliance

EU member since 2007. GDPR-compliant by default, with full access to the EU single market and no cross-border trade barriers.

Multilingual Workforce

High English proficiency across technical roles, plus French, German, and Spanish speakers — ideal for multilingual European operations.

Minimum Wage in Romania

The statutory gross minimum wage is RON 4,050 per month (approximately €814/month), applicable to full-time employees across all sectors. The construction sector benefits from a higher sector-specific minimum wage due to additional tax exemptions for that industry.

As your Employer of Record in Romania, MBRemote ensures all salary arrangements meet or exceed the statutory threshold, including applicable updates issued by the Romanian Government.

Individual Income Tax — Romania's Flat Rate

Romania applies a flat individual income tax rate of 10% on taxable income — one of the lowest in the European Union. This flat-rate structure makes Romania exceptionally attractive for both employees and employers, as compensation packages are straightforward to model and highly predictable.

Taxable income is calculated after deducting mandatory employee social contributions (CAS and CASS) from gross salary.

ContributionRatePaid By
Income Tax (impozit pe venit)10%Employee
Social Insurance — CAS (pension)25%Employee
Health Insurance — CASS10%Employee
Work Insurance Contribution — CAM2.25%Employer

Net salary example: For a gross salary of RON 8,000/month, the employee receives approximately RON 5,148 net after deducting CAS (RON 2,000), CASS (RON 800), and 10% income tax on the remaining taxable base. The employer pays an additional 2.25% (RON 180) on top of gross.

Employer Payroll Cost — Romania EOR

Romania's employer contribution structure is among the leanest in the EU. The total employer cost above gross salary is estimated at approximately 2.25% of gross salary plus a set of fixed monthly costs. As your Romania Employer of Record, MBRemote calculates, withholds, and remits all contributions on your behalf.

Employer Contributions & Fixed Costs:

  • Work insurance contribution (CAM) — 2.25% of gross salary
  • Disability fund contribution — RON 162/month (fixed)
  • Teleworking indemnity — RON 400/month (where applicable)*
  • Mandatory medical examination — RON 240/year (≈ RON 20/month)

Note: These costs are estimates for general informational purposes. Actual costs depend on the specific employment agreement, applicable sector rules, and employee circumstances. Contact our Sales team for a precise quote tailored to your hiring needs.

Overtime Pay & Maximum Working Hours

Standard working hours in Romania are 8 hours per day, 40 hours per week, Monday through Friday. Overtime is mandatory to compensate either financially or via paid time off.

Employees may work a maximum of 32 overtime hours per month. Overtime compensation rates are as follows:

  • Weekday and weekend overtime — 175% of average hourly salary
  • Public holiday overtime — 200% of average hourly salary

Weekday overtime must be compensated with paid time off within 90 calendar days. Overtime worked on public holidays must be compensated within 30 calendar days. If time-off compensation cannot be granted within these periods, overtime is converted to salary in the following month.

Important: Overtime worked on public holidays that cannot be compensated through time off must be paid out in the first payroll cycle after the 30-day window expires, with the applicable premium applied to the employee's hourly rate.

Maternity Leave

Pregnant employees who have been insured in the national social security system for at least 6 months in the last 12 months are entitled to 126 calendar days of paid maternity leave.

The leave spans the period before and after birth, with a mandatory minimum of 42 days taken after the birth. Leave is paid by the National Social Security Fund (Casa Națională de Pensii Publice) at 85% of the employee's average insured income over the previous 12 months.

The maternity leave period cannot be extended beyond the statutory entitlement.

Paternity Leave

Employees who are insured in the state social insurance system are entitled to 10 working days of paid paternity leave following the birth of a child. This leave is paid at 100% of salary from the employer's payroll fund.

If the employee obtains a certificate of completion of a state-recognized childcare course (curs de puericultură), paternity leave can be extended by an additional 5 days, for a total entitlement of 15 working days.

Parental Leave

Either parent is entitled to 2 years of parental leave following maternity leave. For parents of children with disabilities, this entitlement extends to 3 years. The leave is granted to the father if the mother does not exercise her right, or if she uses only a portion of the entitlement.

During parental leave, the state provides a childcare allowance set at 85% of the parent's average net income earned over the last 12 consecutive months within the 2 years prior to birth. Minimum and maximum caps apply as set by Romanian legislation.

Flexibility: Either parent can take parental leave, and it can be shared between both parents — a provision designed to promote equal parenting responsibilities. Employers must keep the employee's position available upon return.

Sick Leave

Employees are entitled to paid sick leave for up to 90 calendar days per year. Payment responsibilities are split between the employer and the National Health Insurance House (Casa Națională de Asigurări de Sănătate — CNAS):

  • Days 1–5 of sick leave: paid by the employer
  • Days 6–90: paid by the employer and reimbursed by CNAS

The applicable payment rate depends on the illness code specified in the medical certificate issued by a doctor or hospital. Minimum rate is 55% and maximum rate is 75% of the employee's average salary over the previous 6 months.

Sick leave can be extended up to a maximum of 183 days within a calendar year, counted from the first day of illness, subject to approval by a social insurance specialist physician.

Termination Framework — Romania EOR

Terminations must respect complex rules and the regulations of the employee's employment country. Off-boarding is always handled by the Employer with the primary stakeholders and may include ad-hoc fees as well as required or recommended steps specific to each termination case.

There is no at-will termination in Romania for employers. All employer-initiated terminations must be based on just cause and comply with Romanian Labor Code (Codul Muncii) provisions. As your Employer of Record in Romania, MBRemote manages the full termination process in compliance with local law.

Valid grounds — employee-related reasons:

  • Disciplinary misconduct — severe breach or repeated violations of work discipline rules, employment agreement provisions, collective bargaining agreement, or internal regulations
  • Physical or mental incapacity — as certified by the relevant medical authorities
  • Professional inadequacy — documented inability to meet the requirements of the role
  • Pre-trial detention or house arrest exceeding 30 days

Valid grounds — operational/organizational reasons:

  • Redundancy following workforce restructuring, based on economic, financial, technological, or organizational grounds

Other valid termination grounds:

  • Mutual agreement (acord al părților)
  • Termination during or at the end of the probationary period
  • Natural expiration of a fixed-term employment contract

Protected categories: Employees cannot be terminated during periods of sick leave, temporary disability, quarantine, maternity leave, or pregnancy — provided the employer was aware of the pregnancy at the time of the intended termination decision.

Notice Period Requirements

Notice period requirements in Romania depend on the reason for termination and the party initiating it:

  • Employer-initiated dismissal — minimum 20 working days
  • Employee resignation (executive positions) — maximum 20 working days
  • Employee resignation (management/coordination positions) — maximum 45 working days
  • Termination by mutual agreement — the employer may waive the notice period entirely

Payroll note: Under Romanian legislation, the official termination date differs from the last working day — the last working day is typically the calendar day before the termination date. For example, if the last working day is June 29th, the termination date is June 30th. Salary for the final month is paid within the standard payroll cycle.

Severance for Employees

Romanian law does not impose a general statutory severance obligation on employers. Severance payments are only required if they have been expressly provided for in:

  • The individual employment agreement
  • An applicable collective bargaining agreement (contract colectiv de muncă)
  • A separately negotiated termination settlement

In cases of redundancy or collective dismissal, a negotiated severance or social plan is common practice and may be expected by employees, particularly in larger organizations.

Paid Annual Leave

Both full-time and part-time employees are entitled to a statutory minimum of 20 working days of paid annual leave. Leave accrues at a rate of approximately 1.66 days per month. Employees may take accrued leave as soon as it is earned — no waiting period applies.

Romanian law requires that employees take a minimum of 10 consecutive working days of paid annual vacation per calendar year. Unused leave may be carried over to the following year by mutual agreement, but employers are legally encouraged to ensure full utilization within the year.

Public Holidays in Romania

Romania observes 17 national public holidays per year — one of the highest counts in the EU. Employees are entitled to paid time off on each of these days. Work on public holidays is compensated at 200% of the employee's average hourly salary, or with equivalent compensatory time off.

National public holidays:

  • New Year's Day — 1 January
  • Day after New Year's Day — 2 January
  • Epiphany (Baptism Day) — 6 January
  • St. John's Day — 7 January
  • Day of the Union of Romanian Principalities — 24 January
  • Orthodox Good Friday — variable (Friday before Orthodox Easter)
  • Orthodox Easter Sunday — variable
  • Orthodox Easter Monday — variable
  • Labor Day — 1 May
  • Children's Day — 1 June
  • Orthodox Pentecost Sunday (Whit Sunday) — variable
  • Orthodox Pentecost Monday (Whit Monday) — variable
  • Assumption of the Virgin Mary — 15 August
  • St. Andrew's Day — 30 November
  • Romania National Day — 1 December
  • Christmas Day — 25 December
  • Second Day of Christmas — 26 December

Orthodox calendar note: Several Romanian public holidays follow the Orthodox ecclesiastical calendar, meaning their dates vary annually. MBRemote tracks and communicates applicable holiday dates to clients each year to ensure accurate payroll scheduling.

Onboarding Timeline — Employer of Record Romania

The Romania Employer of Record onboarding process is completed within 3 business days following client execution of the Statement of Work and submission of all required employee documentation.

Required Documents

MBRemote collects and verifies all required documentation prior to contract issuance. Standard onboarding documentation for Romania includes:

DocumentRequired FromPurpose
Romanian ID card (CI) or valid passportAll employeesIdentity verification and contract registration
Personal Numeric Code (CNP)All Romanian residentsTax registration and payroll processing
Social security number / proof of insuranceAll employeesCAS & CASS enrollment
Proof of right to workNon-EU nationalsWork authorization compliance
Romanian bank account details (IBAN)All employeesSalary disbursement
Medical fitness certificateAll employeesMandatory pre-employment medical check

REVISAL registration: All employment contracts in Romania must be registered in the national electronic register (REVISAL — Registrul General de Evidență a Salariaților) before or on the employee's first working day. MBRemote handles REVISAL registration as part of the standard onboarding workflow.

Work Authorization

Employee OriginWork Authorization RequiredProcessing Time
EU / EEA / Swiss nationalsNo permit required — free movement of workers appliesImmediate
Romanian citizens abroadNo permit requiredImmediate
Non-EU nationalsWork permit (aviz de angajare) + long-stay visa required30–90 days
Highly skilled non-EU workersEU Blue Card or ICT permit via Romanian Immigration (IGI)30–60 days

Annual quota: Romania sets an annual quota for non-EU work permits. Applications must be submitted within the approved quota limits. MBRemote monitors quota availability and advises clients on optimal timing to avoid delays in non-EU hiring.

Employment Contract Requirements

Employment contracts in Romania must be written in Romanian. Bilingual contracts (Romanian + another language) are permitted and common for international organizations. Contracts must be signed by both parties before or on the first working day.

Mandatory contract elements:

  • Identity of both parties (employer and employee)
  • Workplace address and employer headquarters
  • Job title, position, and detailed job description
  • Performance evaluation criteria
  • Working conditions (in accordance with applicable legislation)
  • Contract commencement date and type (indefinite or fixed-term)
  • Annual leave entitlement
  • Notice period obligations for both parties
  • Gross salary and any variable compensation elements
  • Working hours (daily and weekly)
  • Duration of the probationary period, if applicable
  • Termination procedures and conditions

REVISAL obligation: Every employment contract must be registered in REVISAL before the employee's first working day. Any amendments (salary changes, role changes, schedule modifications) must also be registered in REVISAL within 20 working days of the change taking effect.

Probationary Period

Probationary periods are not mandatory in Romania but are widely used in practice. During the probationary period, either party may terminate the contract with no required notice period.

Maximum probation periods — indefinite-term contracts:

  • Executive / individual contributor positions — 90 calendar days
  • Management and coordination positions — 120 calendar days
  • Employees with recognized disabilities — 30 calendar days

Maximum probation periods — fixed-term contracts:

  • Contracts under 3 months — 5 working days
  • Contracts between 3 and 6 months — 15 working days
  • Contracts longer than 6 months (non-managerial) — 30 working days
  • Contracts longer than 6 months (managerial positions) — 45 working days

Collective Bargaining & Internal Regulations

Companies employing 10 or more employees in Romania are required to adopt an Internal Regulation (Regulament Intern) — a binding document that establishes workplace rules, disciplinary procedures, and employee rights. The Internal Regulation must be consulted with employee representatives and registered with the territorial labor inspectorate.

Collective bargaining agreements (contracte colective de muncă) may apply at the unit level (company), sector level, or group level. Where applicable, these agreements set additional minimum standards above the statutory floor — including enhanced leave entitlements, additional pay scales, or supplementary benefits.

GDPR & Data Privacy

Romania is subject to full EU GDPR jurisdiction, enforced by the National Supervisory Authority for Personal Data Processing (Autoritatea Națională de Supraveghere a Prelucrării Datelor cu Caracter Personal — ANSPDCP). As the legal employer of record, MBRemote acts as Data Controller for all employee personal data and ensures:

  • Documented lawful basis for all HR data processing activities
  • Data Processing Agreement (DPA) provided to all clients as standard
  • Employee data retention limited to legally required minimum periods
  • Cross-border data transfers handled under Standard Contractual Clauses (SCCs)
  • Employee privacy notices delivered in plain language at onboarding

GDPR fines can reach €20 million or 4% of global annual turnover — whichever is higher. MBRemote's employment infrastructure is fully GDPR-compliant by design, eliminating this risk from your Romanian hiring operations.

Total cost of employment

What does an Employer of Record in Romania really cost?

Based on a full-time employee earning RON 8,000/month gross (≈ €1,610/month). Estimates only — contact MBRemote for a precise quote.
Cost Component Monthly Annual
Gross salary RON 8,000 RON 96,000
Work insurance contribution — CAM (2.25%) RON 180 RON 2,160
Disability fund contribution (fixed) RON 162 RON 1,944
Teleworking indemnity (where applicable)* RON 400 RON 4,800
Mandatory medical exam (annual, pro-rated) RON 20 RON 240
Total employer cost ≈ RON 8,762 ≈ RON 105,144

This does not include the MBRemote service fee. *Teleworking indemnity applies where remote work is stipulated in the employment contract. Romania's employer contribution rate is among the lowest in the EU — total employer-side cost represents approximately 10% above gross salary, versus 30–40% in Western Europe. Contact MBRemote for a custom quote based on the specific salary, role, and work arrangement.

Compliance risks

Hiring in Romania without an Employer of Record — what can go wrong

Romanian labor law is highly procedural and employee-protective. Errors in contract registration, termination procedures, or contribution filings expose employers to significant financial penalties and legal liability. Using a Romania Employer of Record eliminates these exposures entirely.

Permanent Establishment Risk

Employing staff in Romania without a registered entity may inadvertently create a taxable corporate presence, triggering Romanian corporate income tax obligations and complex cross-border reporting requirements.

REVISAL Non-Compliance

Failure to register or update employment contracts in the REVISAL system before the employee's start date can result in fines up to RON 20,000 per employee, issued by the territorial labor inspectorate (ITM).

Unlawful Termination Claims

Romania's strict "just cause" requirement means any termination without documented legal grounds can be challenged in court. Courts routinely order reinstatement and award full back-pay for the entire litigation period.

Misclassification Liability

The Romanian Tax Authority (ANAF) actively audits contractor arrangements. Reclassification as employment triggers retroactive CAS, CASS, and income tax obligations — plus penalties — going back up to 5 years.

Ready to use an Employer of Record in Romania?

Get your employee onboarded in 3 business days via MBRemote's Romania Employer of Record service — fully compliant, no local entity required.

EU-compliant entity 3-day onboarding REVISAL registered GDPR ready

How it works

Your Global Hiring Process

We take care of employing your team, so you can focus on growing

You choose the talent

You select the candidate you want to hire, anywhere in the world.

We employ them for you

MB Remote becomes the legal employer and handles contracts, payroll, and local labor laws.

Your team starts working

Your employee works directly with you, just like an in-house team member.

We manage compliance

We ensure ongoing payroll, taxes, and legal compliance in the employee’s country.

Frequently Asked Questions

These are the most commonly asked questions about the Employer of Record Can’t find what you’re looking for? Get in touch with an expert

Is it free to contact MB Remote?

Yes. Contacting us is completely free and without obligation. We’ll discuss your needs and explain how our EOR solution works before anything else.

Hiring can usually be completed within a few days, depending on the country and local requirements.

An Employer of Record is a legal entity that employs workers on your behalf. MB Remote handles contracts, payroll, taxes, and local labor law compliance, while you manage the day-to-day work.

MB Remote is the legal employer, but the employee works exclusively for you as part of your team.

We support hiring in multiple countries. Contact us to check availability for a specific location.

We manage payroll, taxes, and social contributions in compliance with local regulations. You receive one simple monthly invoice.

Yes. You manage tasks, schedules, and performance. We handle the legal and administrative side.