Partner with Lerio to keep employment in Romania legally sound — contracts, payroll and statutory benefits handled against the live rule set.
Every figure below is modelled, not memorised — and traceable to its source via the calculator on the right.
Employee taxes
withheld from grossEmployee Taxes
withheld from grossEmployer taxes
on top of grossEmployer Tax
on top of grossYou can hire in Romania through Lerio’s Employer of Record — no local entity required.
Romania has become an increasingly attractive destination for international companies due to its highly skilled workforce, competitive labor costs, and growing technology and services sectors. However, hiring in Romania involves compliance with local labor laws, payroll obligations, and tax regulations, which can be complex for foreign companies.
An Employer of Record (EOR) in Romania enables businesses to hire employees quickly and legally without setting up a local entity. The EOR serves as the legal employer, handling payroll, contracts, taxes, social contributions, and HR compliance, while the client company manages the employee’s day-to-day work and performance.
Key Benefits of Using an EOR in Romania
Rapid Market Entry – Hire Romanian employees in weeks without establishing a legal entity.
Legal Compliance – Ensure adherence to Romanian labor law, payroll, and tax regulations.
Cost Efficiency – Avoid the administrative and financial burden of creating a local subsidiary.
Access to Talent – Tap into Romania’s skilled workforce, particularly in IT, engineering, finance, and customer support.
Flexibility – Scale teams quickly for short-term projects or market testing without long-term commitments.
How EOR Works in Romania
The EOR becomes the legal employer and manages:
Drafting and maintaining employment contracts compliant with Romanian Labor Code.
Payroll processing, including income tax withholding, social security, and health contributions.
Administration of mandatory benefits, including paid leave, health insurance, and pensions.
Compliance with working hours, overtime, and termination regulations.
Onboarding, HR support, and assistance with employee relations and disputes.
The client company retains control over employee responsibilities, projects, and daily management.
Compliance and Employment Regulations in Romania
Working Hours: Standard full-time workweek is 40 hours, typically Monday to Friday. Overtime is strictly regulated and usually compensated at higher rates.
Minimum Wage: As of 2025, the gross national minimum wage is approximately RON 4,000/month, or around €8.15/hour based on a standard full-time schedule.
Paid Leave: Employees are entitled to 20–21 working days of paid annual leave, plus public holidays.
Sick Leave: Paid by social security after the first day (employer may pay initial days depending on contract).
Probation Period: Typically 90 days, but can vary depending on role.
Termination Rules: Notice periods depend on contract type and length of service; severance may apply in specific cases.
Employer Contributions: Social security, health insurance, and unemployment contributions can total 25–27% of gross salary.
Why Choose an EOR in Romania?
Simplify Compliance – Navigate Romanian labor law, payroll, and tax requirements easily.
Faster Hiring – Onboard employees quickly without creating a legal entity.
Risk Reduction – EOR assumes responsibility for employment compliance, payroll, and taxes.
Cost and Time Savings – Avoid the costs of subsidiary setup and administrative overhead.
Local Expertise – EORs provide knowledge of local labor law, payroll, and HR best practices.
An Employer of Record in Romania is the most efficient way to hire local talent, ensure legal compliance, and scale operations in the Romanian market without the time and cost of setting up a local entity.
What Lerio handles
Typical timeline
via EORStatutory benefits in Romania, plus the supplemental coverage teams usually add.
Mandatory
Commonly added
optionalStatutory / Mandatory Benefits in Romania
Romanian labor law and social security regulations ensure a strong baseline of employee protections:
Paid Annual Leave – Minimum 20 working days per year (can be higher depending on the sector).
Public Holidays – 15 national public holidays per year.
Working Hours – Standard 8 hours/day, 40 hours/week; overtime compensated with pay or time off.
Paid Sick Leave –
First 5 days: paid by employer at 100% of salary.
From day 6 onward: covered by National Health Insurance at ~75–100% depending on illness type and contributions.
Maternity Leave – 126 days paid (6 weeks before birth, 10 weeks after), at 85% of average income; can extend for multiple births.
Paternity Leave – 5 working days paid, with some companies offering additional days.
Parental Leave – Up to 2 years per parent, partially paid by social security (state allowance based on previous earnings).
Childcare Leave – Unpaid leave can continue after parental leave until the child reaches 3 years.
Severance Pay – Legally required in some circumstances (e.g., redundancies), usually 1–3 months’ salary depending on tenure and company policy.
Social Security Contributions – Employers contribute ~23.75% of gross salary (pension, health insurance, unemployment). Employees contribute ~35%.
Occupational Health & Safety – Employers must ensure a safe workplace, provide medical exams, and adhere to safety regulations.
Common Employer-Provided Benefits in Romania
Many employers, especially in IT, finance, BPO, and multinational companies, provide additional perks:
Private Health Insurance – Medical coverage for employees and sometimes family members.
Multisport / Gym Cards – Popular for wellness and fitness benefits.
Performance Bonuses – Annual, quarterly, or project-based incentives.
Flexible / Remote Work – Hybrid or fully remote arrangements are common.
Professional Development – Training budgets, certifications, language courses (English, French, German).
Meal Vouchers (Tichete de Masă) – Common, typically €5–€8 per day.
Commuter / Transport Allowances – Fuel, public transport passes, or parking subsidies.
Wellness Programs – Gym memberships, wellness stipends, mental health support.
Extra Paid Leave – Birthdays, volunteering, seniority, or company-specific events.
Supplementary Pension Plans – Voluntary employer contributions to private pensions.
Life & Disability Insurance – Often included for managerial or key positions.
Stock Options / Equity Plans – Offered by startups and multinational companies.
Employee Discounts – Corporate partnerships with retailers, gyms, or cultural events.
Relocation Support – Housing, flights, and visa support for international hires.