Romania’s work authorisation requirements depend on the employee’s nationality and immigration status.

• EU/EEA and Swiss Citizens: Generally have the right to work in Romania without a work permit, although registration requirements may apply.
• Non-EU Nationals: Usually require a work authorisation and the appropriate long-stay visa and residence permit, unless an exemption applies.
• Employer Responsibilities: Romanian employers generally apply for work authorisation on behalf of eligible foreign nationals and must comply with immigration reporting requirements.
• Highly Qualified Employees: Eligible employees may apply through the EU Blue Card route, subject to salary, qualification and other statutory requirements.
• Residence Permits: Non-EU employees must maintain valid immigration status throughout their employment.

The correct procedure should be confirmed before an employee begins work, as exemptions and application requirements differ by category.

Romania operates a payroll system in which employers calculate and withhold personal income tax and employee social contributions, then remit the amounts to the tax authorities.

• Payroll Frequency: Salaries are commonly paid monthly. Payment dates should be specified in the employment contract or applicable internal rules.
• Income Components: Taxable employment income includes basic salary, bonuses, allowances and taxable benefits in cash or kind.
• Personal Income Tax: The standard rate on employment income is 10%, calculated after eligible deductions and mandatory employee social contributions.
• Employee Social Contributions: Employees generally contribute 25% towards social insurance and 10% towards health insurance.
• Employer Contributions: Employers generally pay a work insurance contribution of 2.25%. Additional pension contributions apply to certain special or particular working conditions.
• Tax Reporting: Employers generally submit the monthly tax and social contribution declaration and pay the relevant amounts by the 25th of the following month.
• Minimum Wage: From 1 July 2026, the national gross minimum wage is RON 4,325 per month, subject to applicable sector-specific provisions.
• Payroll Records: Employers must maintain employee and payroll records and register employment contracts in the General Register of Employees before work begins.

The applicable contribution treatment may differ for employees covered by international social security arrangements or specific statutory exemptions.

‍

Romanian employment relationships are governed by the Labour Code. Employment contracts must be concluded in writing, in Romanian, and registered before the employee starts work.

• Contract Types: Contracts may be indefinite-term or fixed-term. Fixed-term contracts are permitted only in circumstances established by law.
• Probation Period: Up to 90 calendar days for executive positions and 120 calendar days for management positions.
• Working Hours: Standard full-time employment is generally 8 hours per day and 40 hours per week.
• Overtime: Overtime is generally compensated with paid time off within the statutory period. Where time off is not provided, a premium of at least 75% of basic salary is generally required.
• Notice Period: For resignation, the notice period cannot generally exceed 20 working days for executive positions or 45 working days for management positions. Employer-initiated termination has separate statutory rules.
• Termination: Employers must comply with the legal grounds, documentation and procedures applicable to the type of termination.
• Minimum Wage: Employees must receive at least the applicable statutory minimum gross salary, proportionate to their working schedule.

Employment contracts should clearly define the job, salary, workplace, working hours, leave entitlement and notice period.

Romania provides statutory paid leave and social insurance benefits, with additional entitlements applying in certain circumstances.

• Annual Leave: At least 20 working days of paid annual leave per year. Additional leave applies to certain employee groups and working conditions.
• Sick Leave: Eligible employees may receive sickness benefits subject to medical certification and social insurance rules. Payment rates and qualifying conditions depend on the reason and duration of leave.
• Maternity Leave: Generally 126 calendar days, usually divided into prenatal and postnatal leave. At least 42 days of postnatal leave must be taken.
• Paternity Leave: Eligible fathers are entitled to 10 working days of paid paternity leave, with an additional five working days available following a childcare course, subject to statutory conditions.
• Parental Leave: Eligible parents may take childcare leave until the child reaches two years of age, or three years for a child with a disability, subject to the applicable benefit rules.
• Public Holidays: Employees are entitled to statutory public holidays. Where work is required and a day off cannot be provided, additional compensation generally applies.
• Social Insurance: Mandatory contributions support pensions, healthcare and eligible sickness, maternity and other statutory benefits.

Annual leave is generally taken as time off rather than paid out, except when the employment contract ends.

• Tax Residency: Individuals may be considered Romanian tax residents based on domicile, their centre of vital interests or presence in Romania for more than 183 days during a 12-month period, subject to the applicable rules.
• Residents: Generally taxed on worldwide income, subject to domestic exemptions and applicable double taxation treaties.
• Non-Residents: Generally taxed on Romanian-source income until they become tax residents, subject to treaty provisions.
• Tax Year: 1 January – 31 December.
• Personal Income Tax: Employment income is generally taxed at a flat rate of 10%, after applicable deductions.
• Employee Social Contributions: Standard rates are 25% for social insurance and 10% for health insurance.
• Employer Contributions: The standard work insurance contribution is 2.25%, with additional employer pension contributions for certain working conditions.
• Double Taxation Treaties: Romania has an extensive treaty network, which may affect the treatment of cross-border employment income.

Employers should assess tax residency, work location and any applicable international social security or tax treaty provisions when hiring employees who work across borders.