Romania is a southeastern European country known for the forested region of Transylvania, ringed by the Carpathian Mountains. The Romanian landscape is approximately one-third mountainous and one-third forested, with the remainder made up of hills and plains. The climate is temperate and marked by four distinct seasons. Romania is bounded by Ukraine to the north, Moldova to the northeast, the Black Sea to the southeast, Bulgaria to the south, Serbia to the southwest, and Hungary to the west.
The most important sectors of Romania’s economy are industry, wholesale and retail trade, transport, accommodation, food services, public administration, defense, education, human health, and social work activities.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Romania.
Capital :
Bucharest
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Currency :
Romanian Leu (lei, Ron)
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Languages spoken :
Romanian
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Population :
18.96 million (2022 est.)
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Minimum wage 2023 :
RON 3,300 per month
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Cost of Living index :
$$ (102 of 139)
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Payroll Frequency :
Monthly
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VAT - standard rate :
19%
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GDP - real growth rate :
4.8% (2022 est.)
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The national holidays mentioned below are valid for the year 2024.
The approximate time for sharing the contract with an employee in Romania is 3 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal or external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee
Remote work is governed by Law 81/2018 and failure by employers to abide by the provisions of this law attracts fines.
In Romania, a person can only be employed based on a medical certificate, which finds that the person in question is fit to perform that work.
Full-time working hours are eight hours per day and 40 hours per week. Should the daily length of the working time exceed six hours, the employees have the right to a meal break and other breaks, under the terms provided for in the applicable collective labor agreement or in the rules of procedure.
Working hours, including overtime, may exceptionally exceed 48 hours per week, provided that the average number of working hours, calculated for a reference period of three calendar months, does not exceed 48 hours per week.
The probationary period depends on the type of employment agreement. Employees hired based on an individual labor contract for a definite period may be subjected to a probation period according to the following guidelines.
Duration of the Fixed Employment Contract |
Probation Period |
---|---|
Not exceeding 1 month |
2 working days |
Between 1 and 3 months |
5 working days |
Between 3 and 6 months |
15 working days |
Exceeding 6 months |
20 working days |
In the case of employees holding management positions, for employment contracts exceeding 6 months |
30 working days |
Notice periods are stipulated by the parties to individual employment contracts or applicable collective labor agreements, as appropriate. They cannot exceed 20 calendar days for employees in operational positions and 45 days for employees in management positions. The notice period starts within two days of submitting one’s resignation.
Each employee is entitled to paid annual leave for a minimum period of 20 days per year.
The maximum duration of sick leave is 183 days a year or up to 18 months for serious illnesses. Employees are entitled to pay for up to five days of sick leave with a compensation of 75% of their salary from the employer. Compensation is provided by the state for sick leave exceeding five days.
Child-raising leave and benefits are granted to natural parents, adoptive parents and people who have been granted temporary custody of their children pending adoption or legal guardians. Leave and cash benefits are granted for up to the first two years of the child’s life, or for the first three years for disabled children.
Child-raising leave for a disabled child can be extended until the child has reached the age of seven years if one of the natural or adoptive parents or the legal guardian requests this.
A maternity allowance is paid to the mother for 126 calendar days while she is on leave. This period is made up of 63 days of leave before birth (antenatal leave) and 63 days after the child is born (postnatal leave). The first 42 days of leave after the child is born are compulsory. The remaining 84 days need not be taken if the mother does not feel that she needs them or can be taken earlier, before birth, or later, after the birth.
The length of paternity leave is five days, fully paid by the employer. Paternity leave is granted on request, in the first eight weeks after the birth of the child, justified with the child’s birth certificate.
There is the possibility of extending the leave by a further 10 days if the father attends an infant-care course (curs de puericultură).
Type of Leave | Duration |
Marriage of the employee | 5 days |
Marriage of an employee’s child | 2 days |
Death of a spouse, child, parent or parent-in-law | 3 days |
Death of a grandparent or sibling | 1 day |
Blood donation | According to the legal provisions in force |
Relocating to another town | 5 days |
An individual employment contract may be suspended, with the agreement of the parties, in case of unpaid leave for studies or personal interests. The length of the unpaid leave is laid down in the collective labor agreement or in the rules of procedure.
The social security system in Romania finances several benefits in the country such as:
Benefits | Employer Contribution |
Social insurance |
|
Labor insurance |
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Any person who is legally residing in Romania can benefit from the national health insurance system from the date of starting the contribution payment to the fund. Insured people in Romania receive a basic package of medical services through which they are treated for illnesses or accidents from the first day of illness or the date of the accident until they recover.
Healthcare is financed by employee contributions of 10%. There are no employer contributions towards healthcare insurance in Romania.
The insurance system for work accidents and occupational diseases guarantees a set of services and benefits for the benefit of insured persons, with a view to promoting health and safety at work, preventing accidents at work and occupational diseases, and reducing and compensating for the consequences of accidents at work and occupational diseases.
Employers contribute 2.25% towards labor insurance and 5% of that fee is used to finance the accident insurance.
Unemployment Indemnity is an unemployment insurance benefit. It is contributory, not means-tested, and not taxable. The unemployment benefit is paid every month, for a period of between six and 12 months.
20% of the contribution made by employers towards labor/work insurance of 2.25% goes to the unemployment insurance fund.
Old-age pensions are granted to people who have reached the standard retirement age and have completed the minimum period of contribution to the public pension system. The standard retirement age for women is 61 years and six months and will increase gradually to 63 years by January 2030. The standard retirement age for men is 65 years.
The employer makes a social security contribution of either 0%, 4% or 8% towards the pension insurance, depending on their working environment.
Invalidity pensions are paid to people who have lost all or at least half of their capacity to work, either due to work accidents or occupational illnesses or due to other illnesses or accidents which are unconnected with their work.
The employer makes a social security contribution of either 4% or 8% towards the pension insurance, depending on their working environment.
Survivors’ pensions are paid to the children and surviving spouse if the deceased person who supported them was a pensioner or met the requirements to receive any type of pension paid from the public pension system.
Death grants are paid both in the event of the death of an insured person or pensioner under the public pension system and in the event of the death of family members who were supported by them and have no entitlement of their own to social insurance.
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
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