Employee Benefits in Romania

Bonuses and additional payments

In Romania, there is no legal mandate for annual bonuses. Nonetheless, performance bonuses and other incentives are commonly provided, as stipulated in employment contracts or collective bargaining agreements.

Annual leave

Employees in Romania are entitled to paid vacation leave after completing one year of service. The statutory entitlement is 20 working days per year, with additional days granted for employees working in hazardous conditions or with disabilities. This leave is fully paid and can be taken throughout the leave year, as agreed between employer and employee.

Additional leave may be offered as part of an employment contract, though it is not required by law. Many employers offer enhanced leave policies to stay competitive and improve retention.

Unused statutory leave must be taken within 18 months after the end of the calendar year it is earned. Payment in lieu of unused leave is only permitted upon termination of employment.

Sick leave

In Romania, personal and sick leave are governed by the Labour Code. Employees contributing to the social insurance system are entitled to up to 183 days of paid sick leave per year, with a possible extension of 90 days. The first five calendar days are paid by the employer, and from the 6th day onwards, the National Health Insurance Fund covers the payment. A medical certificate is required to take sick leave.

Parental leave

Employers must provide eight weeks (126 calendar days) of paid maternity leave, with a maximum of 63 days usable prior to birth and 63 days usable after birth. Maternity leave is paid at 85% of an employee’s average monthly income.

Pregnant employees who have contributed to the social insurance system are eligible for benefits, with written notice required prior to the expected delivery date.

Additional benefits

In addition to the above, employers are legally required to provide several benefits under Romanian labor laws.

• Social Insurance Contribution (CAS): Employees contribute 25% of their gross salary to the public pension system, covering retirement benefits.
• Health Insurance Contribution (CASS): Employees contribute 10% of their gross salary to the national health insurance system, providing access to public healthcare services.
• Work Insurance Contribution: Employers contribute 2.25% of an employee’s gross salary to the Work Insurance Fund, covering unemployment and other labor-related benefits.

Free public healthcare coverage is provided to all Romanian residents through the National Health Insurance House (CNAS), offering services such as doctor visits, hospital stays, and medications. However, many individuals opt for private healthcare to access a broader range of services and reduced wait times.

Employer social costs cover a significant portion of employee benefits in Romania, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance, if needed. As your employer of record in Romania, we may be able to provide optional supplementary medical insurance coverage for professionals and their dependents at a more cost-effective rate.