Romania at a glance
Taxes in Romania
Employer Contributions
| Contribution | Rate |
|---|---|
| Employer tax (work insurance contribution) | 2.25% |
| Total employer tax | 2.5% |
Note: Romania's employer-side social contributions are among the lowest in Europe — the majority of the social insurance burden falls on the employee.
| Contribution | Rate |
|---|---|
| Employer tax (work insurance contribution) | 2.25% |
| Total employer tax | 2.5% |
Note: Romania's employer-side social contributions are among the lowest in Europe — the majority of the social insurance burden falls on the employee.
| Contribution | Rate |
|---|---|
| Social insurance (CAS) | 25% |
| Health insurance (CASS) | 10% |
| Income tax (flat rate) | 10% |
| Total employee tax | ~45% |
Employer of Record in Romania
How Remote& EOR Works
Standard EOR structures are not permitted in Romania — a temp agency licence is required. Remote& holds this licence, enabling compliant employment of Romanian workers without you needing a local entity.
| Party | Role |
|---|---|
| Your Company | Directs work, manages performance, allocates tasks |
| Remote& | Holds temp agency licence; runs payroll, files taxes, ensures compliance |
| Employee | Signs contract with Remote& and fulfills work obligations for your company |
Ask Remi:
"Hire a backend engineer in Romania — RON 12,000/month, starting next month" Remi handles everything: compliant contract, ANAF tax registration, payroll setup, and CNAS health enrollment.
Benefits in Romania
- Preliminary medical examination at hire and periodic intervals based on age
- Unemployment indemnity for eligible categories (paid by Local Occupational Authority)
- Work-from-home allowance
- Supplementary health insurance
- Stock options
- Meal tickets (tichete de masă)
- Private pension (Pillar III)
- Private health insurance
- Gift tickets and cultural tickets
- Travel allowance
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 20 days + public holidays |
| Sick Leave | Unlimited |
| Maternity Leave | 126 days |
| Paternity Leave | 10–15 days |
| Parental Leave | Until child's 2nd birthday |
Employment conditions
Probation
Maximum probationary periods under indefinite-term contracts:
- Managerial positions: 120 days
- All other roles: 90 days
- Employees with disabilities: 30 days
Non-Compete
Maximum duration: 2 years from termination date. No specific penalty amounts may be written into contracts. Employers must prove financial loss through legal action to enforce the clause.
Employee Rights & Protections
Romanian workers are entitled to: written employment agreement, personal data protection, union membership, safe workplace, whistleblower protection, reasonable accommodation, equal treatment, anti-discrimination protection, redundancy payment rights, and pay transparency.
Payments
End of employment in Romania
Employment may be ended for valid, justified reasons: de jure termination, probation expiration, mutual agreement, or gross misconduct.
Protected periods: Employees cannot be dismissed during illness leave, pregnancy, parental leave, or military service.
Protected classes: Termination cannot be based on race, sex, language, political views, union membership, or religion.
Employee challenge rights: Workers may contest termination in court. If successful, the court declares the termination invalid and may order reinstatement, back pay from termination to reinstatement, and court expense coverage.
Frequently asked questions
Four paths: run payroll from HQ (generally non-compliant); use contractors (not valid for full-time exclusive workers); establish a local entity (complex and time-consuming); or partner with Remote& as a licensed temp agency — the only compliant EOR-style route in Romania.