Employer of Record in Romania

How does an Employer of Record work in Romania?

With some of the lowest labor costs in the EU and full access to the European Union market, Romania consistently attracts foreign investment. Added to this are a skilled, available workforce, low operating costs, widespread English language skills, and competitive taxation.

However, Romania’s regularly changing tax and labor rules can present challenges for foreign employers, potentially leading to costly mistakes.

An Employer of Record (EOR) in Romania ensures your hiring activities are in complete compliance by acting as the local employer on your behalf.

Romania labor market: At a glance

The hiring market
Greatest hiring activity:	Bucharest, Cluj-Napoca, Timișoara, Iași, Brașov
Hiring timelines:	4-8 weeks; longer for non-EU hires
In-demand sectors:	Construction, finance and insurance; strongest demand for sales, customer service, and administration roles
Sectors with skills shortages:	AI, specialist IT, cybersecurity, construction, logistics and transport, retail

The salary market
Employer tax contributions:	2.25% (work insurance). All other statutory contributions are paid by the employee, except for roles in hazardous or special working conditions, in which case the employer pays either a 4% or 8% pension contribution.
Monthly minimum wage:	RON 4,325 gross (since 1 July 2026); RON 4,582 in construction.
Average gross annual salary:	Approx. RON 114,000 (based on an average gross monthly salary of RON 9,497, August 2026)
Personal income tax rates:	10% on employment income (after deducting social and health contributions)

What will it cost to hire in Romania?

In addition to base salary, employers need to budget for a statutory contribution, leave entitlements, and other common benefits. We have outlined the current costs below.

Base salary

Employees must be paid at least the statutory minimum of RON 4,325 gross per month, or RON 4,582 for the construction sector. An employee can be paid the minimum wage for a maximum of 24 months with the same employer; after that, their pay must increase.

Statutory employer contributions

Employers only contribute a work insurance contribution (CAM) of 2.25% on gross monthly salary. Under normal working conditions, all other statutory contributions are paid by the employee. The employer withholds these from their salary and pays the contributions to the relevant body. Employee contributions are social security insurance (CAS, 25%) and health insurance (CASS, 10%), alongside their income tax (10% flat).

Allowances

Holiday bonus	Not applicable in Romania (Easter and Christmas bonuses are common but not mandatory)
Annual leave	Employees are entitled to a statutory minimum of 20 working days’ leave. Holiday pay is based on the employee’s average daily earnings over the previous 3 months and is paid at least 5 working days before the leave starts. Holiday pay cannot be lower than the base salary plus permanent allowances.
Sick pay	Until the end of 2027, the first day of sick leave is unpaid, except in specific statutory situations. The employer pays for days 2-6 on presentation of a medical certificate, and the state health fund pays from day 7. For common illnesses, sick pay is 55% of the employee’s average earnings for leave of up to 7 days, 65% for 8-14 days, and 75% for longer periods.
Parental leave	Maternity leave Mothers are entitled to 126 calendar days (up to 63 before the birth and 63 after; at least 42 calendar days after the birth are mandatory). The national health insurance fund pays for maternity leave at 85% of the average gross income over 6 of the past 12 months. Paternity leave Fathers are entitled to 10 working days’ leave, taken within 8 weeks of the birth, plus 5 more with a childcare course certificate. The employer pays these days at full salary. Childcare leave Once maternity leave ends, either parent can take childcare leave until the child turns 2 (or 3 if the child has a disability), as long as they had 12 months of income in the 2 years before the birth. Employers must approve qualifying requests. The state pays a monthly allowance. The employee’s contract is suspended during this period but their job is protected.
Overtime	The normal working hours are 8 hours per day and 40 hours per week. Employees may work a maximum of 48 hours per week on average, including overtime. Overtime is compensated with equivalent paid time off within 90 calendar days; otherwise, it is paid with a minimum premium of 75% of the employee’s base hourly rate. Night workers receive a 25% premium or a 1-hour reduction in working time.
Public holidays	Romania has 17 national public holidays in 2026, but only 16 are days off as 2 fall on the same day. Work on a public holiday is compensated by time off within the following 30 days, otherwise, the employee receives a premium of at least 100% of base salary for the hours worked.

Common extra benefits

Not mandatory but typical benefits include meal vouchers, private health insurance, voluntary (Pillar III) pension contributions, and contributions towards nursery/kindergarten fees.

Severance

There is no statutory severance due for individual dismissals, unless provided for in applicable collective labor agreements, internal policy, or the employment contract.

Worked example

An employee earning the national average of RON 9,497 gross per month plus the statutory employer CAM contribution RON 213.68 (2.25% of gross monthly salary) equals a total employer cost of RON 9,710.68 monthly or RON 116,528 annually. This figure excludes any applicable allowances, benefits, or EOR costs.

Calculate employment costs

Use our handy calculator below to quickly calculate the total employment costs for your hire.

What does hiring really look like in Romania?

Market condition	Current reality
Hiring momentum	🔴 Weak
Talent availability	🟢 Improving
Specialist talent	🔴 Competitive
Salary pressure	🟡 Moderate
Candidate expectations	🟡 Moderate-high

Hiring momentum

The current economic slowdown has led to sector-specific layoffs (such as IT) and a decrease in hiring intentions. General professionals are widely available, but skilled trades and specialist technical workers are in short supply. This presents opportunities for foreign employers hiring professionals in Romania. Blue-collar roles have traditionally relied on non-EU workers, but this route is currently disrupted due to the suspension of work visa D/AM2 (see ‘Hiring non-EU nationals’ below).

Talent availability (general and specialist)

Romania’s unemployment rate was 6.3% in September 2026, and youth unemployment is especially high (30.8% among 15-24-year-olds in Q2 2026). IT layoffs have also added these experienced professionals to the market. Those still employed feel cautious about the current economy, particularly about layoffs. This tallies with the PwC Hopes and Fears 2026 survey, which found that just 18% are likely to change employers in the next 12 months.

Salary pressure

58% of employees state they have no money left at the end of each month after paying bills, pointing to the rising cost of living. An attractive offer from a stable employer offering a competitive salary plus additional benefits such as hybrid or remote working, private medical insurance, and meal vouchers has the edge, especially for specialist talent from in-demand sectors.

Candidate expectations

Current economic conditions mean that candidates value stability; they will not move for below-par offers or to less stable companies. In fact, PwC found that 61% would not move for lower pay or benefits. Employers should therefore anticipate salary, benefits, and work condition negotiations.

Country-specific problem that employers must know about

Hiring non-EU nationals

Romania introduced a new system for hiring non-EU workers under Emergency Ordinance 32/2026, in force since 27 April 2026. Every employer must now be registered on a centralized platform (WorkinRomania.gov.ro) before hiring any non-EU national not already resident in Romania with work rights. Two visa types for non-EU workers were introduced: D/AM1 and D/AM2.

Under the new system, employers hiring non-EU nationals must also provide Romanian language courses (including social and cultural integration) for at least 6 hours per week for a minimum of 6 months from the employee’s start date. Non-compliance can lead to fines of RON 5,000-10,000 per worker.

Visa Types

Visa Type	Who it applies to	What employers should know
D/AM1	Highly qualified staff; full-time employees from Moldova, Ukraine, and Serbia; and certain special categories	Applications are filed directly by the registered employer. Workers in this category do not count towards the annual quota. Note: currently only available to employers already registered on the platform.
D/AM2 (suspended since September 2026)	Permanent, seasonal, and cross-border workers for shortage occupations.	Hires in this category can only go through an authorized employer or placement agency. Authorized employers must have at least 50 staff, 24 months’ activity, no tax debts, and provide a financial guarantee. D/AM2 visas have an annual quota limit (90,000 in 2026).
D/DT	Intra-company transfers who remain employed by a non-EU group company	Applied for directly at a Romanian consulate, not WorkinRomania.gov.ro

Important note: Since September 2026, employer registration, employer authorization, and D/AM2 applications have been temporarily suspended on the platform, pending a new shortage occupation list. Employers that are not currently registered on the platform cannot currently start the process, even for D/AM1 hires.

Which route applies to your hire?

EU/EEA/Swiss citizen	No visa required; they just need to register their residence with the authorities after 3 months
Non-EU; already resident with work rights	No WorkinRomania.gov.ro registration needed
Non-EU; highly-qualified, hired on a Romanian contract	D/AM1 (only for already-registered employers on the platform, for now)
Non-EU; shortage occupation worker	D/AM2 - currently suspended
Intra-company transfer	D/DT

Compliance risks that employers must know about

Onboarding paperwork needs to be completed before Day 1

Compliant employment contracts must be written in Romanian. It must be signed, dated, and submitted to the REGES-ONLINE labor inspectorate platform by no later than the day before the start date, otherwise it is treated as undeclared work, which carries fines. The employee must also receive their signed copy before Day 1. Foreign employees must receive a version in a language they understand. Note: The Constanța Court of Appeal annulled the Romanian government decision introducing REGES-ONLINE, but as the ruling is not final, REGES-ONLINE remains in use.

In addition, the employee must also have an occupational health check before starting, confirming that they are fit for the role. This is arranged and paid for by the employer.

Strict dismissal procedure

Either side can end the employment agreement with written notice (no reason needs to be given) during the probationary period. Probation can last up to 90 calendar days (or 120 days for managers), with shorter limits for fixed-term contracts.

After probation ends, the main legal grounds for dismissal are professional unfitness, misconduct, physical/mental unfitness, and redundancy. Protected employees such as pregnant workers or those on parental, childcare, or sick leave cannot be dismissed unless due to the company’s bankruptcy, judicial reorganization, or dissolution.

Disciplinary dismissal requires a prior disciplinary investigation with a written summons plus the right to a defense.

For dismissals related to physical, mental, or professional unfitness, the employer must first offer any suitable vacant role. These must be listed in the dismissal decision.

Every dismissal needs a written decision that states the reasons and notice period. Disciplinary dismissal decisions must also state the legal grounds, plus the deadline and court for a challenge.

At least 20 working days’ notice must be given for dismissal due to redundancy or unfitness. No notice is required for a disciplinary dismissal.

Employees then have 45 calendar days to challenge a dismissal decision (or 30 days where the dismissal is a disciplinary sanction).

If these steps are not followed correctly, a court can cancel the dismissal and award back pay, plus reinstatement if the employee requests it.

Teleworking agreement

Teleworking is uncommon (only 1.3% of Romanian employees worked from home in 2025, according to Eurostat), although hybrid working is popular in office sectors. Remote work requires a written telework agreement. The employer must provide the equipment, and the agreement must state how telework costs are covered.

Benefits of hiring employees through an EOR in Romania

An Employer of Record acts as your legal employer on the ground, saving you the cost and time of setting up a local entity.

Rivermate has deep expertise in handling hiring in Romania for foreign companies. On your behalf, we:

• ensure employment contracts are signed, dated, and registered with REGES-ONLINE before Day 1, in accordance with Romanian law
• take care of HR administration, payroll set-up, payroll management, tax filings, compliance management, and official communications
• handle every stage of the dismissal process, ensuring full compliance with local labor laws
• manage WorkinRomania registration and visa applications for non-EU hires and notify you well before renewals
• keep you updated on Romania’s regularly changing employment rules and local regulations

Ready to hire in Romania?

Hiring in Romania involves more than finding the right candidate. From managing payroll, taxes and benefits administration to ensuring full compliance with Romanian Labor Law, Rivermate handles the complexities so you can hire with confidence.

Talk to a Romania Hiring Expert

Sources:
PwC Worldwide Tax Summaries: Romania, other taxes (social security contributions)
PwC Worldwide Tax Summaries: Romania, income determination
InfoTVA: telework allowance no longer tax-exempt from 2024
Economedia: minimum wage RON 4,325 from 1 July 2026
Labor Inspectorate Employment Contracts in the Construction Field
Adevărul: minimum wage unchanged on 1 January 2027
Labour Inspectorate: 24-month minimum wage rule
Rubinian: Labour Code art. 76 (dismissal decision)
Rubinian: Labour Code art. 150 (holiday pay)
Rubinian: Labour Code art. 142 (public holiday work)
Av. Tuca Maria: Labour Code consolidated text
Avocatnet: sick leave rules 2026
Playtech: sick leave, who pays which days
StartupCafe: sick leave exceptions (Law 64/2026)
Capital.ro: maternity leave 2026
Avocatnet: paternity leave 2026
PwC Romania: OUG 32/2026 alert
KPMG Romania: OUG 32/2026 Tax Newsflash (quota)
Ministry of Labour: 2026 foreign worker quota
WorkinRomania: employer registration
Ministry of Foreign Affairs Types of Visa
Economedia citing EY: D/AM2 suspension
Labour Inspectorate: REGES-ONLINE
Economedia: REGES-ONLINE court ruling
Economedia: INS unemployment, September 2026
Profit.ro: youth unemployment
ManpowerGroup Q3 2026 outlook via Recruiting Headlines
Undelucram: IT sector 2026
Undelucram: PwC Hopes and Fears 2026 Romania
Romania Insider: Eurostat home working 2025
Ministry of Labour: shortage occupations behind the 2026 quota
EY Attractiveness Survey Romania 2026
Eurostat: hourly labour costs 2025
Romania Insider: EF English Proficiency Index 2025
Undelucram: pay transparency bill status
Economedia: pay transparency draft obligations