Payroll and Benefits Guide - Romania

Romania
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Currency

Romanian Leu (RON)
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Capital

Bucharest
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Employer Taxes

6.25%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Romania is home to the legendary Bran Castle, often associated with the fictional character of Count Dracula.

The ancient kingdom of Dacia was located in present-day Romania and was conquered by the Romans in the early 2nd century AD.

The Palace of the Parliament in Bucharest is the world’s heaviest and most expensive administrative building.

The life-saving drug insulin was discovered by Romanian scientist Nicolae Paulescu in 1916.

Romania is home to some of Europe’s last remaining large carnivores, including brown bears, wolves, and lynxes.

The Scarisoara Ice Cave in Romania contains a glacier and is the second-largest ice cave in Europe.

Romania

Contributions

Employee Payroll Tax

Contribution TypeRate
Pension25.00%
Health Insurance10%

Employer Payroll Tax

Contribution TypeRate
Unemployment Insurance2.25%
Social Security4.00%

Payroll

Payroll Cycle

The payroll frequency is monthly. Work between the first and last day of the month is typically paid on the last working day of the month.

13th Salary

There is no statutory requirement for a 13th salary payment in Romania

Work Hours and Week

The work week is limited to no more than five eight-hour days and a maximum of 48 hours per week. Monday–Friday

Overtime

Employees are entitled to up to 20 days of paid annual leave by law per year pro-rated with the worked period. Employers are required to pay employees their allowance at least five working days before the leave starts.
Romania

Leave

Paid Time Off

Employees are entitled to up to 20 days of paid annual leave by law per year pro-rated with the worked period. Employers are required to pay employees their allowance at least five working days before the leave starts.

Sick Days

Under the labor code, employees covered by the pension and social insurance system who have made required contributions are entitled to sick leave of up to 180 days within one year with a possible 90-day extension.

Maternity Leave

Under the labor code, employees covered by the pension and social insurance system who have made required contributions are entitled to sick leave of up to 180 days within one year with a possible 90-day extension.

Paternity Leave

The father/partner, who effectively participates in a child’s care is entitled to 10 days of paid leave, irrespective if the child is born of marriage, out of wedlock, or adopted; this leave increases to 15 days if the employee participates in an infant care course.

Parental Leave

The father/partner, who effectively participates in a child’s care is entitled to 10 days of paid leave, irrespective if the child is born of marriage, out of wedlock, or adopted; this leave increases to 15 days if the employee participates in an infant care course.

Other Leave

Depending on the collective agreement/employment contract terms, an employee may be allowed additional leave types, which must be approved between the employer and employee.

Termination

Termination Process

The termination process varies according to how the employment agreement and collective agreement are in place and is based on the type of contract and reason for termination.

Notice Period

Notice period in the case of an employee dismissal is a minimum of 20 working days for all jobs regardless of the employment contract.

Severance Pay

There is no statutory severance pay in Romania unless conditions have been set in a collective agreement.

Probation Period

Probation Period

The probationary period in Romania is dependent on the type of role and is stipulated within the employment agreement.

VISA

VISA

EU citizens wishing to work in Romania should apply for a registration certificate from the Romanian Office for Immigration for a stay of more than 90 days. Non-EU citizens need to obtain a residency permit if the stay is longer than 90 days

VAT

VAT is 19% standard rate.