Romania

Employer of Record (EOR) in Romania

Only 399 EUR per employee per month

Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Romania . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Romania.

Employer of Record people
A coin
Currency
Romanian New Lei
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Capital
Bucharest
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Region
Europe
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Language
Romanian
Hire remote employees
Population
19237691
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GDP
$212 billion
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GDP growth
0.0726
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Ease of doing business
73.3
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World GDP share
0.0026

1. Grow your team in Romania with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Romania , particularly if you don't have established local relationships. You can hire employees in Romania effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Romania is positioned at the intersection of Central, Eastern, and Southeastern Europe. It is bounded to the south by Bulgaria, to the north by Ukraine, to the west by Hungary, to the southwest by Serbia, to the east by Moldova, and to the southeast by the Black Sea. It has a mostly temperate-continental climate, a land area of 238,397 km2 (92,046 sq mi), and a population of around 19 million people. Romania is Europe's twelfth-largest nation and the EU's sixth-most populated member state. Bucharest is the capital and biggest city, while other significant cities include Iași, Cluj-Napoca, Timișoara, Constanța, Craiova, Brașov, and Galaţi.

The Danube, Europe's second-longest river, begins in the Black Forest of Germany and runs southeast for 2,857 kilometers (1,775 miles) until emptying into Romania's Danube Delta. Moldoveanu Peak, with an elevation of 2,544 meters, is part of the Carpathian Mountains, which run across Romania from north to south (8,346 ft).

In 1859, the Danubian Principalities of Moldavia and Wallachia founded the Republic of Romania. In 1877, the new state, formally known as Romania since 1866, declared independence from the Ottoman Empire. After proclaiming neutrality in 1914, Romania fought with the Allied Powers beginning in 1916. Following the conflict, Bukovina, Bessarabia, Transylvania, and portions of Banat, Crișana, and Maramureş were incorporated into the Kingdom of Romania. As a result of the Molotov–Ribbentrop Pact and Second Vienna Award, Romania was forced to surrender Bessarabia and Northern Bukovina to the Soviet Union and Northern Transylvania to Hungary in June–August 1940. Romania accepted the Tripartite Pact in November 1940 and, as a result, entered World War II on the Axis side in June 1941, fighting against the Soviet Union until August 1944, when it joined the Allies and reclaimed Northern Transylvania. Following the war and Red Army takeover, Romania became a communist country and a Warsaw Pact member. Romania started its transition to democracy and a market economy after the 1989 Revolution.

Romania, which ranks 49th in the Human Development Index, is a developing nation with a high-income economy. By nominal GDP, it has the world's 47th biggest economy. Romania witnessed strong economic development in the early 2000s, and its economy is now mostly service-based. Through enterprises such as Automobile Dacia and OMV Petrom, it is a manufacturer and net exporter of machines and electric energy. Since 1955, Romania has been a member of the United Nations, NATO since 2004, and the European Union (EU) since 2007. The majority of Romania's population is ethnic Romanian, who identify as Eastern Orthodox Christians and speak Romanian, a Romance language. The Romanian Orthodox Church is the country's biggest and most traditional church.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Romania is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

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.

5. Employment termination

There is no information about employment information for this country.

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.

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.

Severance pay

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

6. Working hours

There is no information about the working hours for this country.

General working schedule

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

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.

7. Minimum wage

There is no information about the minimum wage for this country.

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.

8. Employee benefits

There is no information about the employee benefits for this country.

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.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

The normal corpoarte income tax rate for Romanian businesses and international companies with a permanent establishment (PE) in Romania is 16%. Unless a double tax treaty (DTT) states differently, resident businesses are taxed on their global revenue. Non-resident corporations are taxed on all revenue received from Romanian taxpayers, regardless of whether the services are provided in Romania or to individuals who are tax residents in Romania owing to the location of effective management.

The CIT payable for nightclubs and gambling businesses is 5% of the income generated by such activities or 16% of the taxable profit, whichever is greater.

Individual income tax

Personal income tax (PIT) is usually levied at a flat rate of 10%. However, there are several exceptions to this rule (e.g. the tax rate for dividends, the tax rate for income from the transfer of immovable property, the tax rate for income from gambling activities depends on the income level).

VAT, GST and sales tax

VAT is charged at a normal rate of 19%. All supply of goods and services (including imports) that do not qualify for an exemption (with or without credit) or a lower VAT rate are subject to the normal VAT rate.

The reduced VAT rate of 9% is levied on the supply of prosthesis and related accessories defined by specific legislation, with the exception of dental prosthesis, which are tax exempt; the supply of medicines for human and veterinarian use; the supply of food, including non-alcoholic beverages, for human and animal consumption; domestic animals and livestock; seeds, plants, and other ingredients used in the manufacture of prosthesis and related accessories.

The provision of school manuals, books, newspapers, and certain periodicals, as well as the supply of living spaces as part of social policy (including the land on which they are constructed), are subject to a 5% VAT rate.

10. VISA and work permits

There is no information about VISA and work permits for this country.

Romania Visa Policy consists of the laws and restrictions that nationals from all other countries must follow in order to visit Romania. The permit to enter the nation is only granted if the individual follows the mandatory laws and regulations. Travelers from all around the globe must get a visa to enter Romania.

A visa is an approved document that a person from a foreign nation must receive in order to be permitted to enter any foreign country. Visitors may enter, stay, and leave the nation lawfully if they have a visa. A visa is attached to a person's passport by gluing or stamping it.

The regulations of the Romania Visa Policy fluctuate from person to person since they are depending on the individual's nationality. To acquire a legitimate visa, they must fulfill all of the conditions outlined in the Romania Visa Policy, or their admission would be rejected. The regulations are determined by criteria such as the length of the traveler's stay, the purpose of the visit, and so on.

There are various types of visas available to visitors visiting Romania, but the two most essential are the tourist visa and the business visa. People visiting Romania must get a visa depending on their intended purpose.

People from all over the globe must get a visa before entering Romania, according to the Romania Visa Policy. Nationalists from over 110 nations, territories, and regions, on the other hand, do not need a visa to visit Romania. Brazil, Argentina, Fiji, Chile, South Korea, and other nations are among them.

Romania is set to join the EU's 26 member states very soon. This implies that individuals from the existing visa-exempt nations for Romania will have to apply for an ETIAS online before visiting the country. ETIAS is an acronym that stands for European Travel Information and Authorization System. Because nationals from visa-exempt countries may visit Romania and stay for up to 90 days, this visa waiver system will prescreen all foreigners going to Romania to ensure that they do not pose a health or security danger to the country.

According to the Romania Visa Policy, all European Union nationals have the right to enter and remain in Romania for as long as they like since they enjoy freedom of movement in the country. The only paperwork they need to bring with them is a valid identification card or document proving their identity.

According to the Romania Visa Policy, citizens from over 35 countries and areas of the globe must get a visa before visiting the country. They are not permitted to apply for a visa online or to get a visa upon arrival. China, North Korea, Iraq, Cameroon, and Chad are among the nations where admission may be barred if they do not get a visa prior to their travel.

Tourists from all over the globe must get a visa to enter Romania, with the exception of EU nations and visa-exempt countries, which do not need a visa to enter Romania according to the Romania Visa Policy. There are three methods to get a visa for Romania.

The first method of acquiring a visa offered to nations such as India, Pakistan, Angola, and others is to fill out an internet form known as an eVisa. This online application form is incredibly simple and takes very little time. VOA, which stands for Visa On Arrival, is the second method of acquiring a visa. Bolivia, Bangladesh, Iran, Jamaica, and other nations may take advantage of this. Countries that are eligible for a VOA may also be eligible for an eVisa.

The third method of obtaining a visa is to go to the Romanian Embassy and secure a consular visa before entering Romania. They must get a visa through the embassy in their home country since they cannot obtain a visa in any other manner.

According to the Romania Visa Policy, a tourist may stay in the nation for 90 days for both tourism and business reasons by applying for a visa in any of the above-mentioned methods.

ETIAS is not a visa, but rather a travel document that persons from visa-exempt nations must hold in order to stay in Romania for 90 days or three months. The ETIAS program is quick and easy to use, and it allows tourists to travel to other Schengen regions in Europe.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

Employment contracts must be in written, in Romanian, and signed before the employment relationship begins, and the employer must register the agreement with the government labor inspectorate's General Register using its computerized system (known as REVISAL) before employment begins. The contract must mention the following:

The employer's and employee's identity and identifying information

The place of employment and its registered address

A position description

A description of potential workplace dangers The start date of work

The amount of yearly leave that the employee will be granted

The employee's basic wage, any extra remuneration, and the duration of the pay period

Normal working hours, measured in hours per day or weeks per week

Information about any collective bargaining agreements that may apply to the employment.

A probationary term may also be included in the employment contract. The maximum probation term under an indefinite contract is 90 days for most employment and 120 days for management positions. The maximum probation time under a fixed-term contract is five days if the contract is for less than three months, 15 days if the contract duration is three to six months, 30 days if the contract term is six months or more, and 45 days for a management post.

Before employment can begin, candidates for employment must undergo a preliminary medical examination and be certified as fit for work. The applicant must also provide proof of identification, diploma(s), and any other evidence confirming they have the necessary credentials for the position.

With Rivermate being your Employer of Record (EoR) in Romania, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

In Romania, employment contracts are either indefinite or for a set period of time. Indefinite contracts are preferred; fixed contracts are often only permitted for project-based or other short-term work. A fixed-term contract may not be longer than 36 months and may be renewed up to two times; however, after the third renewal or after 36 months, the employment agreement is automatically changed into an indefinite contract.

Payment currency

Romanian New Lei

13.Opening a subsidiary in Romania

There is no information about the working hours for this country.

How to set up a subsidiary

If you decide to establish up a Romania subsidiary on your own, you must examine various variables that may influence your choice. You must investigate any current commercial links as well as the industry you intend to enter. These factors may determine where you establish your Romanian headquarters.

Romanians speak a variety of languages depending on where you are in the nation. Hungarian, Romani, Ukrainian, German, Russian, Turkish, Tatar, Serbian, Slovak, Bulgarian, and Croatian are all spoken at the national or local level. When you incorporate, you must determine which language is most generally spoken in the region and recruit staff or translators who speak that language.

Various laws may apply in different areas or cities of a nation. Set up your Romania subsidiary in a region that has minimal formation expenses and is welcoming to international enterprises. An adviser or other local business experts can assist you in locating the optimal location for your headquarters.

A limited liability corporation is a popular subsidiary form (SRL). The following steps are required to establish an SRL:

1. Obtain a minimum of 40 EUR in share capital.

2. Obtain a certificate of good standing from the parent firm.

3. Complete the parent company's Memorandum and Articles of Association.

4. Resolve the parent company's choice to establish a Romania subsidiary. Register a physical office.

5. Assign an administrator to be the subsidiary's signatory.

6. To formally register, file documentation with the Trade Register.

Subsidiary laws

Subsidiary rules in Romania vary depending on the kind of business you choose to form. An SRL requires at least one shareholder and a director who does not have to be a resident of Romania or the European Union (EU).

Limited liability subsidiaries must submit financial statements and tax reports to the Romanian tax office every year. An audit is only necessary if your subsidiary has more than 15 shareholders or meets the following criteria:

1. Over 7.3 million in yearly revenue

2. Over 3.6 million dollars in assets

3. There are more than 50 workers.

13. Why choose Rivermate as your Employer of Record / PEO in Romania

Establishing an entity in Romania to hire a team takes time, money, and effort. The labor law in Romania has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Romania 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 (EOR) solutions in Romania 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 Romania via our Employer of Record (EOR) / PEO solution.

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