In Romania, the government mandates employers to provide a minimum level of benefits to their employees. These statutory benefits, also known as mandatory benefits, are essential components of an employment package in the country.

Social Security Contributions

A significant portion of mandatory employee benefits in Romania falls under the umbrella of social security. This system provides financial support to employees in various situations, including retirement, unemployment, sickness, and disability. The social security system in Romania is a three-pillar system, with contributions from both employers and employees.

• Public Pension System: This is the mandatory state-run pension plan. Employees contribute 25% of their gross salary, while employers contribute 0% for standard working conditions (increased contributions apply for difficult work conditions).
• Private Pension Funds: Employees are mandated to contribute 3.75% of their gross salary to a private pension fund on top of the public pension contributions.

Paid Time Off

Romanian employees are entitled to various forms of paid time off, ensuring periods of rest and recuperation. These include:

• Annual Leave: Employees receive a minimum of 20 paid vacation days per year.
• Sick Leave: Employees are entitled to paid sick leave for up to 180 days within a year, with the employer covering the first five days and the National Health Insurance Fund covering subsequent days. The level of sick pay depends on the illness category and can range from 75% to 100% of the average monthly income.
• Maternity Leave: Mothers are entitled to 180 days of paid maternity leave at 100% of their salary.
• Paternity Leave: Fathers are entitled to 10 days of paid paternity leave at 100% of their salary.
• Parental Leave: Parents can share an additional 45 days of parental leave at 65% of their salary until the child reaches one year old.

Other Mandatory Benefits

• Minimum Wage: The Romanian government mandates a minimum wage, which is reviewed and adjusted periodically.
• Overtime Pay: Employees are entitled to additional compensation for working overtime hours.
• Severance Pay: Under certain circumstances, employees may be entitled to severance pay upon termination of their employment.

In Romania, many employers offer additional benefits to attract and retain top talent. These optional benefits can significantly enhance employee satisfaction and well-being.

Financial and Retirement Benefits

• Supplementary Pension Contributions: Some employers contribute additional amounts to their employees' private pension plans, boosting their retirement savings.
• Life and Disability Insurance: Employers may offer life insurance and disability insurance to provide financial security to employees and their families in case of unforeseen circumstances.

Health and Wellness Benefits

• Private Health Insurance: Some employers offer private health insurance to provide access to a wider range of medical services and shorter waiting times.
• Wellness Programs: Companies may offer wellness programs to promote employee health and well-being. These programs can include gym memberships, fitness classes, or health screenings.

Work-Life Balance Benefits

• Flexible Working Arrangements: This could include flexible working hours, remote work options, or compressed workweeks, allowing employees to achieve a better work-life balance.
• Additional Paid Time Off: Some employers offer additional paid vacation days, personal leave days, or paid time off for birthdays or other special occasions.

Other Perks and Benefits

• Meal Vouchers: Many employers in Romania provide meal vouchers to their employees, allowing them to purchase meals at subsidized prices.
• Company Cars or Transportation Allowances: Employers may offer company cars or transportation allowances to facilitate commuting or travel for work purposes.
• Mobile Phones and Internet Access: Providing company phones and internet access can be beneficial for employees who need to stay connected for work outside the office.
• Professional Development Opportunities: Employers may offer opportunities for employees to attend training courses, conferences, or workshops to develop their skills and knowledge.

Offering optional employee benefits can be a strategic move for companies in Romania. By providing attractive benefits packages, employers can differentiate themselves in the competitive job market, improve employee morale and productivity, and build a strong employer brand.

In Romania, the healthcare system is universal, meaning all Romanian residents are entitled to basic healthcare coverage. This coverage is provided by the National Health Insurance Fund (NHIF) funded through mandatory social security contributions from both employers and employees.

Mandatory Health Insurance

Employees in Romania contribute 5.5% of their gross salary towards health insurance through social security contributions. On the other hand, employers contribute a minimum of 6% of an employee's gross salary towards health insurance, with a higher contribution rate applicable for employees working in hazardous conditions.

These mandatory contributions finance the NHIF, which provides basic medical services to Romanian residents. This includes access to general practitioners and specialist care, inpatient and outpatient hospital care, and medications included in a national list of reimbursable drugs.

Optional Private Health Insurance

Many employers in Romania offer private health insurance plans as an optional employee benefit. These plans typically provide access to a wider range of services compared to the NHIF, including shorter waiting times for specialist consultations and elective surgeries, coverage for a broader range of medications, and private hospital rooms.

Employees can also choose to purchase individual private health insurance plans to supplement their NHIF coverage.

Romania's retirement system is a multi-pillar structure designed to provide income security for retirees. This system combines mandatory public and private plans with optional savings options to cater to individual needs.

Building the Foundation

The foundation of Romania's retirement system is built on two mandatory pillars:

• Public Pension System (Pay-As-You-Go): This is the state-run pension plan funded through social security contributions. Employees contribute 25% of their gross salary. Benefits are calculated based on contributions and average salary during the contribution period.

• Private Pension Funds (Mandatory): Individuals born after July 1, 1971, are mandated to contribute 3.75% of their gross salary to a privately managed pension fund on top of public pension contributions. This pillar aims to supplement the public pension and offers more investment options.

Eligibility for Pension Benefits

To qualify for a pension from these mandatory pillars, individuals must meet specific contribution requirements and reach the retirement age, which is currently 65 years for men and 63 years for women (gradually increasing to 63 years for women by 2030). The minimum contribution period is 15 years, with a full pension awarded for 35 years of contributions.

Boosting Retirement Savings

• Private Pension Funds (Voluntary): A voluntary scheme through private companies allows individuals to contribute any amount they choose to these plans, allowing them to save for retirement beyond the mandatory contributions. These plans often offer tax benefits and various investment options for potential growth.

Additional Considerations

• Early Retirement: Early retirement is possible under specific circumstances, but it typically leads to reduced pension benefits.
• International Agreements: Romania has social security agreements with some countries. These agreements may impact how contributions and benefits are calculated for individuals who have worked in multiple countries.