Romania Employer of Record

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Romania, an employer of record may be the best option for achieving your global growth objectives.
An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Romania―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.
Learn about the hiring, employment, payroll and benefits requirements for workers in Romania and how our employer of record service, Global Employment Outsourcing (GEO), and local HR experts can help you manage your international employment needs.
Hiring in Romania
The cost of living in Romania is very low compared to the rest of the EU. Salaries there are also among the lowest in the EU and, as a result, many trained workers such as doctors and nurses leave the country in search of better pay. The government has tried to rectify this lack of skilled labor by raising the minimum wage, which has gone up every year since 2007.
Employment relations in Romania are governed primarily by the Labor Code and they are largely favorable to employees, who cannot waive any rights provided by law. Employment relationships are established by individual contracts or collective bargaining agreements.
Since employment in Romania is highly regulated, it is essential that your employment practices and contracts are compliant. As your employer of record and PEO in Romania, we can ensure that every contract, for every worker, meets all requirements. We can also provide you with guidance about cultural norms and hiring best practices and keep you up-to-date with employment regulations as they change.
Employment contracts in Romania
As you look to hire employees in Romania, here are some common regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.
Working hours
The regular workweek consists of five eight-hour days for a total of 40 hours per week. Employees are entitled to two days off in a row. Employees who work more than six hours a day are entitled to a rest break and a meal per shift. The length and timing of both are determined by collective bargaining agreements.
Night shift work is defined as any shift where at least three hours are performed between 10 p.m. and 6 a.m., or when night work is done at least 30% of the month. A night shift cannot exceed eight hours when averaged over a three-month period.
Employees working at least three night shift hours per day require the following:
- A medical exam given at the employer’s expense at the beginning of the job and periodically thereafter
- Either a one-hour reduction in regular work time without reduction of salary for the days when the employee works at least three hours at night, or a bonus equal to at least 25% of their base salary.
Compensation
As you consider the appropriate salary to offer new employees, keep in mind:
- Minimum wage is 2,230 lei per month for full-time employees, 2,350 lei per month for positions requiring a college degree and 3,000 lei per month for construction industry employees.
- Overtime is limited to eight hours a week and must be compensated with paid time off in the next 30 days, or at a rate no lower than 175% of base salary.
- Collective agreements may regulate the legal salary range.
As your employer of record in Romania, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.
Bonuses
Year-end bonuses are voluntary and governed by employment contracts or collective bargaining agreements.
Employees who are transferred to another location or a different employer are entitled to a transfer bonus.
Probationary period
A probation period of up to 120 days for executives or 90 days for non-executives is permitted. During this time, the contract can be terminated without notice.
Termination and severance
An employer can terminate an employee for four reasons:
- Repeatedly violating work rules
- Being in preventative custody for more than 30 days
- No longer able to perform the duties for medical reasons
- Does not meet professional requirements for the position
Dismissal must occur within 30 days of the employer learning or deciding that the employee warrants termination.
If an employee can no longer perform their duties or no longer meets professional requirements, the employer must offer them another position or offer 20 days’ notice. Payment in lieu of notice is not permitted.
Additionally, termination for violating work rules requires an investigation of charges.
Employees cannot be terminated under the following circumstances:
- While temporarily incapacitated
- While on quarantine leave
- While pregnant or on maternity leave
- While raising a child up to 2 years old or a disabled child up to 3 years old
- While taking care of a child up to 7 years old or a disabled child up to 18 years old
- While holding a union office (except in cases of serious or repeated misconduct)
- While on annual leave
Employees are required to give 20 days’ notice of departure for non-management positions and 45 days for management positions.
As your employer of record in Romania, we can work with you to quickly handle the unforeseen event of an employee termination, providing legal guidance and a personalized process that ensures you stay out of labor court.
Employee benefits and paid leave in Romania
When negotiating terms of an employment contract with a candidate in Romania, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.
Maternity leave
A pregnant employee who has been employed for at least one month of the previous 12 is entitled to 126 days of maternity leave, starting 63 days before the due date. A minimum of 42 days must be taken after the child’s birth. While on maternity leave, employees earn 85% of their average income over the previous 12 months. Maternity pay is paid by the National Social Security Fund. Employees on maternity leave cannot be terminated.
Vacation
Employees are entitled to a minimum of 20 days of paid vacation each year. Collective bargaining agreements and employment contracts may provide additional leave. Employees cannot forfeit their right to paid vacation.
Annual vacation must be taken in at least one block of no fewer than 15 days. Unused vacation may be used within 18 months starting the following year.
At minimum, vacation pay must equal the base salary as well as permanent benefits and bonuses as per the contract or labor agreement. Vacation pay must be given five days before leave begins.
Employees in the following circumstances are entitled to additional leave of no fewer than three extra days per year:
- Employees under 18
- Employees working under heavy, hazardous or harmful conditions
- Disabled or blind employees
In the case of a family emergency, employees are entitled to additional paid leave. The number of days varies depending on the industry and is established by collective agreement or internal regulation.
Holidays
The Labor Code provides 12 public holidays:
- New Year’s Day and the day after
- The first two days of Easter
- Labor Day
- The first two days of Pentecost
- Assumption
- Saint Andrew’s Day
- National Day
- The first and second days of Christmas
Employees who practice a religion other than Christianity are entitled to two days off for each of three established religious holidays, provided that the religious body that determines those holidays is recognized by the Romanian government.
Employees required to work on a public holiday are entitled to one day off within the following 30 days. If the employer is unable to grant the day off, the employee is entitled to double pay.
Sick leave
Employees who have made the required contributions to Romania’s pension and social security system are entitled to sick leave of up to 183 days a year with a possible 90-day extension. Sick pay is 75% of the average monthly income they earned during the previous six months. The employer pays sick leave for the first five days and the social security fund pays for the remainder. An employee on sick leave cannot be terminated.
Health coverage
Healthcare in Romania is financed by employee contributions equal to 5.5% of salary and employer contributions of 5.2%. In theory, services provided by state hospitals and clinics are free, but in practice citizens often have to pay out of pocket or give bribes in exchange for favorable treatment. Private medical care and private insurance also exist, although neither is widespread.
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.
Pension
Employees are eligible to retire with a full pension at age 60 for women and 65 for men, as long as they have made at least 15 years of contributions to the social security system. (The retirement age for women will gradually increase to 65 by 2030.)
Pensions are funded by a mix of employer and employee contributions. Employers pay 15.8% to 25.8% of total payroll, depending on the working conditions their employees face. Employees must pay 10.5% of their gross monthly salary into the social security and pension fund.
Workers’ compensation
To qualify for workers’ compensation, employees must suffer at least a 50% loss in working capabilities resulting from a workplace injury or occupational disease. Temporary disability benefits equal 80% of the employee’s average wages for the six months before the disability began and are paid beginning on the first day of disability for up to 180 days a year. The employer covers these benefits until the employee recovers or receives a certificate of permanent disability.
Employer social costs will cover a large 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.
Employee onboarding with an employer of record in Romania
We write and validate all local employment contracts, streamlining the onboarding process for you and your Romania employees—all you have to do is provide relevant information and review and approve the employment agreement.
As your employer of record in Romania, we will:
- Schedule a welcome call to discuss HR and employment information for Romania, as well as answer any questions
- Prepare a customized employment contract in English and in Romanian (or other local language)
- Share the employment contract and benefits information with the new employee for signature and review
- Gather tax and banking information from the employee to set up payroll
- Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll
The entire onboarding process for the employee is often completed in as little as two weeks.
Partner with Safeguard Global as your Romania employer of record and PEO
With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on Global Employment Outsourcing (GEO) to expand and hire in over 179 countries around the world, quickly and compliantly.
We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Romania. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.
Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations—in more than 150 countries and can accommodate the payroll outsourcing needs of any size organization.
Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.
The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.
Related content
- Payroll in Romania
- Why employ in Romania?
- Global expansion: Entering the Romania market
- International employment contracts
- Legal entity or GEO?
- Thinking about international expansion?
- International salary benchmarking: A how-to guide
Let's talk about your employment needs in Romania
"*" indicates required fields
Learn more about Global Employment Outsourcing
Ready to employ in Romania?