Currency
Romanian Leu (RON)
EOR IN Romania
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A guide to employing and growing your team in Romania
Fast and compliant market entry. Hire top local talent without the need for a legal entity
Romania is a fast growing economy. It also has one of the lowest costs of living in the EU. Romania’s labor market in 2026 is characterized by a shift toward high-skill industries like IT, cybersecurity, and automated manufacturing. Governed by the Romanian Labour Code (Law 53/2003), the system is noted for its “Tax Shift,” where the majority of social security burdens were moved from the employer to the employee in recent years. As of July 1, 2026, the gross national minimum wage is legislated to increase to RON 4,325 per month.
Employer Contributions
Work Insurance Contribution (CAM): 2.25%
Unemployment indemnities: 0.38%
Medical leave indemnities: 0.47%
Work accident/professional disease: 0.05%
Romanian guarantee fund: 0.27%
Residual collection: 1.08%
Mandatory Health Check: RON 84.00 (Annual flat payment per employee).
Safety Training (SSM): RON 209.00 (Annual flat payment per employee).
Total Employer Contribution: ~2.25%
Employee Payroll Taxes
Social Security (CAS – Pension): 25.00%
Health Insurance (CASS): 10.00%
Income Tax (Flat Rate): 10.00%
Total Employee Contribution: ~45%
Employee Income Tax Rates
Romania maintains a 10.00% flat tax rate on individual income.
Statutory Leave
Employees are entitled to a minimum of 20 working days of paid annual leave per year. In practice, many professional sectors offer 21-25 days. Romania observes 15 to 17 public holidays. If a holiday falls on a weekend, it is typically lost, though the government occasionally decrees “bridge days” to create long weekends.
Pregnancy and Maternity Leave
Female employees are entitled to 126 calendar days of maternity leave, usually split as 63 days before and 63 days after birth.
Payment: Paid at 85% of the average gross income from the last 6 months, funded by the National Health Insurance Fund (FNUASS).
Childcare Leave: Following maternity leave, either parent can take leave until the child reaches age 2 (or age 3 for children with disabilities). This is paid at 85% of average net income, capped in 2026 at RON 8,500 per month.
Paternity Leave
Fathers are entitled to 10 working days of paid paternity leave (increased from the previous 5 days). This can be extended by an additional 5 working days (total of 15 days) if the father completes a certified childcare course, applicable once per child.
Work-Related Injury Leave
Sick Leave: Employees receive between 75% and 100% of their salary depending on the illness. The employer pays for the first 5 days, and the state covers the remainder. Family Events: Paid leave is granted for specific events: 5 days for marriage, 3 days for the birth of a child (separate from paternity leave), and 3 days for the death of a close relative.
Termination Process
Dismissal must be justified by objective grounds (redundancy) or subjective grounds (professional inadequacy or misconduct). “At-will” termination is not recognized. For professional inadequacy, the employer must conduct a formal evaluation process. All dismissals must be documented and issued in writing.
Notice Period
Notice periods are mandatory and based on the role, provided the employee has passed probation:
Non-management positions: Minimum 20 working days.
Management positions: Minimum 45 working days.
Resignation: Employees must also provide 20 (non-mgmt) or 45 (mgmt) days of notice to the employer.
Probation Period
Probation must be clearly stated in the written employment contract:
Execution positions: Maximum 90 calendar days.
Management positions: Maximum 120 calendar days.
Termination: During probation, either party can terminate the contract immediately (0 days notice) and without providing a justification.