Guide to employment, payroll and benefits in


Rivermate offers complete payroll, benefits and compliance services for


01. Overview

Last updated: 

August 19, 2021

Romanian New Lei
Ease of doing business
GDP growth

02. Grow your team in


with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in


, particularly if you don't have established local relationships. You can hire employees in


effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Romania is situated at the intersection of Central, Eastern, and Southeastern Europe. It has land boundaries with Bulgaria in the south, Ukraine in the north, Hungary in the west, Serbia in the southwest, and Moldova in the east, as well as a Black Sea opening. It has a climate that is mostly temperate and continental. With a total area of 238,397 km2, Romania is Europe's twelfth-largest country and the European Union's sixth-most populous member state, with approximately 19.26 million people. Bucharest is the country's capital and largest city. Cluj-Napoca, Timișoara, Iași, Constanța, Craiova, Brașov, and Galaţi are some of the other major cities. The Danube River, Europe's second-longest river, rises in Germany's Black Forest and flows 2,857 kilometers southeast before emptying into Romania's Danube Delta. Moldoveanu Peak, at an elevation of 2,544 meters, is located in the Carpathian Mountains, which run from north to south through Romania. Modern Romania was established in 1859 through a personal union of the Danubian Principalities of Moldavia and Wallachia. In 1877, the new state, known as Romania since 1866, declared independence from the Ottoman Empire. Following the outbreak of World War I, Romania declared neutrality in 1914 and began fighting on the side of the Allies in 1916. Following that, the independent Kingdom of Romania annexed Bukovina, Bessarabia, Transylvania, as well as parts of Banat, Crișana, and Maramureș. Romania was forced to cede Bessarabia and Northern Bukovina to the Soviet Union, and Northern Transylvania to Hungary, as a result of the Molotov–Ribbentrop Pact and Second Vienna Award in June–August 1940. Romania signed the Tripartite Pact in November 1940 and, as a result, entered World War II on the Axis side in June 1941, battling the Soviet Union until August 1944, when it allied with the Allies and reclaimed Northern Transylvania. Romania became a socialist republic and a member of the Warsaw Pact after the war, when it was occupied by Red Army troops. Romania started its transition to democracy and a market economy after the 1989 Revolution. Romania is a developing nation with a high-income economy, ranking 49th in the Human Development Index. With an average economic growth rate of 3.5% as of 2020, it is the world's 45th largest economy by nominal GDP. Following rapid economic growth in the early 2000s, Romania now has a mostly service-based economy and is a manufacturer and net exporter of machines and electric energy, with companies such as Automobile Dacia and OMV Petrom leading the way. Since 1955, it has been a member of the United Nations, a NATO member since 2004, and a member of the European Union since 2007. The vast majority of the population is ethnically Romanian and Eastern Orthodox Christian, and speaks Romanian, a Romance language, as a first language.

04. Public holidays

05. Types of leave

Paid time off

The minimum amount of vacation time required by law is 20 days per year, prorated according to the number of days worked. Vacation days must be used throughout the working year. If the employee is unable to take all or part of the annual leave in that calendar year for reasonable reasons, the Employer is required to provide the annual leave not taken within 18 months of the year in which the right to vacation time originated.

Public holidays

Romania recognizes fifteen public holidays.

Sick days

Sick leave is only paid if the employee has been a member of the Health House for at least six months and obtains a medical certificate from a physician.Within 24 hours after receiving the medical certificate, the employee must notify his employer of his condition. If the employee's illness happened on a non-working day, he or she must notify the employer on the first working day.The Employer pays for the first five calendar days. The National Health Fund begins to cover the medical allowance on the sixth day. In practice, the Employer pays the amount provided by the National Health Fund as well, and then asks the Health House for reimbursement.In the event of a sick leave allowance, the payout percentage varies between 75% and 100% of the calculation basis (average of the employee's monthly gross salary for the previous 6 months prior to the month the medical leave is given).

Maternity leave

Maternity leave lasts 126 days (typically 63 days before and 63 days after the child's birth). It accounts for 85 percent of the calculation basis (the average of the employee's monthly gross income for the six months before the commencement of maternity leave). The maternity leave is awarded based on the physician's medical certificate.The National Health Fund provides the maternity allowance (in practice the Employer pays the maternity leave and afterward he requests the reimbursement of the amount from the Health House).

Paternity leave

Fathers are entitled to 5 days of paid paternity leave, which they can spend until their kid becomes 8 weeks old. The father's leave can be extended for an extra 10 days if he decides to engage in childcare classes. This extension is only valid for the first kid and can only be used once.

Parental leave

Parental leave is granted until the kid reaches the age of two. A handicapped youngster is entitled to depart until he or she reaches the age of three. The payment is paid directly by the state institution and is equivalent to 85 percent of the employee's average earnings over the previous 12 months. The job contract is suspended at this time.

Other leave

Bereavement Absence: An employee who has experienced a death in their immediate family is entitled to two days of unpaid leave.Marriage leave is five days for an employee and two days for a child's marriage.

06. Employment termination

Termination process

There are three sorts of termination: legitimate; based on the parties' consent, on the date agreed upon by them; and as a result of one of the parties' unilateral will, under the circumstances and within the time limits specified by law (resignation, dismissal, etc).

Except for terminations during the trial period, the Employer's written decision is always necessary. The employment contract may be terminated during the trial period upon the written request of either party (the Employer or the employee), and no notice period is necessary.

Notice period

For all job titles, regardless of whether the employment contract is for a limited or unlimited duration, the notice period in the event of dismissal is a minimum of twenty working days. Notice period for non-management positions: no more than twenty working days. For management positions, the notice period cannot exceed 45 working days.

Severance pay

In Romania, there is no statutory severance pay unless specified in a collective bargaining agreement.

Probation period

Romanian labor agreements must be indefinite in duration (i.e. as permanent contracts). When an employment contract is indefinite in duration, the probation period cannot exceed 30 calendar days for disabled individuals, 90 calendar days for operational positions, and 120 calendar days for management positions.

Fixed-term employment agreements may be used in certain circumstances, as defined by the law, including the replacement of an employee whose labor agreement has been suspended, the temporary modification of the employer's activity, the progression of certain seasonal activities, and the employee meets retirement requirements within five years of employment.

In the case of a fixed-term employment agreement, the probation period cannot exceed 5 working days for a fixed-term employment contract lasting less than 3 months, 15 working days for a fixed-term employment contract lasting between 3 and 6 months, 30 working days for a fixed-term employment contract lasting more than 6 months, and 45 working days for a fixed-term employment contract lasting more than 6 months.

07. Working hours


The standard workweek is 40 hours spread over five days, but employees under the age of 18 may work up to 30 hours spread over six days. The standard workday is eight hours, but some flexible scheduling arrangements that spread out time throughout the week are permitted.


Overtime requires the employee's consent and is limited to eight hours per week unless exceptional circumstances exist. Employees who work overtime are entitled to paid time off within 60 days to compensate for the additional hours worked, or, if this is not possible, to be compensated at 175 percent of the employee's standard hourly rate for the additional time worked. If the employee works on a weekend, a public holiday, or compensatory time off, the employee is compensated at 200 percent of their standard hourly rate.

Employees who work a minimum of three hours per day between the hours of 10:00 a.m. and 10:00 p.m. between 6 a.m. and 6 a.m. or work 30% of their monthly hours receive one hour of paid time off or compensation equal to 125 percent of their standard hourly rate. Over a three-month period, an employee's night hours may not exceed eight hours on average.

08. Minimum wage


Romania has two minimum gross wages guaranteed in payment. For full-time employees or those who work schedule of 8 hours per day, from Monday to Friday, the minimum wage is RON 2,230 a month. For employees assigned in positions for which higher education studies are required and have at least one year of seniority in the higher education area, the minimum wage is RON 2,350 a month.

The minimum gross wage is amended yearly under the conditions of law.

09. Employee benefits


Romania has universal free healthcare, although many treatments must be paid for in advance and then reimbursed. Private clinics and providers are also available. As an employee benefit, several companies offer private health insurance. Furthermore, the quality of treatment in government institutions is not always up to Western standards, therefore workers may want to consider purchasing private health insurance.

Employers generally do not offer additional private health insurance coverage. Meal coupons are a tax-free incentive that is often provided to workers in Romania.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in


to hire a team takes time, money, and effort. The labor law in


has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into


simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in


give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in


via our Employer of Record / PEO solution.

Ready to get started? Our friendly staff is ready to assist you with all your questions, let's connect.