Payroll and Benefits Guide Romania
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
2.25%
|
Unemployment Insurance
|
|
4.00%
|
Social Security (pension) contribution
*Under special conditions
|
| 6.25% |
Total Employment Cost |
| Employee Payroll Contributions | |
|
25.00%
|
Pension
|
|
10.00%
|
Health Insurance
|
| 35.0% |
Total Employee Cost |
| Employee Income Tax | |
| 0% | 0-5000 RON monthly |
|
10%
|
above 5,000 RON monthly |
Employer taxes
Employee taxes
Minimum Wage
General
The minimum statutory monthly gross wage is 4,050 RON
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
In Romania, 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
Authority Payments
|
Authority Payment |
Paid To |
Due Date |
Method |
|
Social insurance contribution (CAS) |
Contributia pentru asigurari sociale (CAS) |
25th of the following month |
Treasury |
|
Social health insurance (CASS) |
Contributia pentru asigurari sociale de sanatate (CASS) |
25th of the following month |
Treasury |
|
Unemployment Insurance (CAM) |
Contributia asiguratorie pentru munca (CAM) |
25th of the following month |
Treasury |
|
Revenue Tax |
Impozit pe veniturile din salarii sediu |
25th of the following month |
Treasury |
|
National Solidarity Fund |
Contributia la bugetul Fondului National de solidaritate |
25th of the following month |
Treasury |
|
Wages Income tax |
Impozit pe veniturile din salarii Punct de lucru |
25th of the following month |
Treasury |
Working Hours
General
According to Romania law, the work week is limited to no more than five eight-hour days and a maximum of 48 hours per week. Part-time workers must work a minimum of ten hours per week, two hours per day. For employees under 18, work is limited to six hours a day or 30 hours a week.
Employers must keep a record of the daily work hours performed by each employee, highlighting the start and end hours of the working program, and shall present such records to the labor inspection control when required.
Overtime
| Aspect | Regulation Details | Notes |
| Maximum Ordinary Hours | 8 hours per day and 40 hours per week. Overtime is any work performed beyond these limits. | |
| Absolute Maximum Weekly Hours | Total working time, including overtime, must not exceed 48 hours per week. | This is an absolute cap, but an exception allows the average to be calculated over a 4-month (or up to 12-month by CBA) reference period. |
| Maximum Daily Hours | After working a 12-hour day (only permitted in specific circumstances, including overtime), the employee must be granted a 24-hour rest period. | |
| Consent | Overtime generally requires the employee’s prior consent (except in cases of force majeure or urgent work to prevent accidents or eliminate consequences). | |
| Prohibitions | Overtime is prohibited for employees under 18 years of age and part-time employees. |
Mandatory Overtime Pay Rates
Compensation for overtime is mandatory, but there is a clear priority order: compensatory time off is the primary method, with monetary compensation being the secondary (backup) method.
| Condition | Compensation Method Priority | Minimum Compensation Rate (Supplement) | Total Pay Rate |
| Standard Overtime (Working Days) | First Priority: Paid time off. | Compensatory paid time off equal to the overtime hours worked (1:1). | N/A |
| Standard Overtime (Monetary Backup) | Second Priority: Monetary Pay. | +75% of the base salary for the overtime hours worked. | 175% |
| Rest Day/Public Holiday Work (Compensation) | Paid time off (must be granted within 30 days) OR Monetary Pay. | +100% of the base salary for the overtime hours worked. | 200% |
Key Compensation Rules:
-
Time Off Deadline: Paid compensatory time off must be granted within 90 calendar days following the performance of the overtime work.
-
Monetary Trigger: If compensatory time off cannot be granted within the 90-day period, the employer must compensate the overtime hours monetarily at the minimum 6$\mathbf{175\%}$ rate.
Other Mandatory Premiums
These premiums apply to the normal working week and may be cumulative with overtime pay:
| Premium Type | Time Period | Statutory Minimum Rate (Supplement) | Total Pay Rate |
| Night Work Premium | 10:00 PM to 6:00 AM (if night work is at least 3 hours of the shift). | +25% of the basic salary. | 125% |
| Sunday/Holiday Work (Rest) | If paid time off is not granted within the next 30 days. | +100% of the base salary. | 200% |
Leave
Annual Leave (vacation)
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.
PTO carryover
In Romania, statutory annual leave cannot be forfeited. If it isn’t taken in the year it’s earned, it must be carried over and used within 18 months. A blanket “use-it-or-lose-it” policy is not lawful, and unused leave must be paid out on termination.
Note:
- For Eurofast, according to Romanian law, vacation leave is taken every year, and if the employee, for justified reasons, cannot take, in whole or in part, the annual vacation leave to which he was entitled in the respective calendar year, the employer is obliged to grant the unused vacation leave within a period of 18 months starting with the year following the year in which the right to annual vacation leave arose. Monetary compensation for unused vacation leave is allowed only in the event of termination of the individual employment contract. The right to annual vacation leave cannot be the subject of any assignment, waiver or limitation.
Public Holidays
Public holidays that fall on the weekend are usually lost.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day (Anul Nou) | Standard holiday |
| 2 January 2026 | Friday | Day after New Year’s Day | Standard holiday |
| 6 January 2026 | Tuesday | Epiphany (Boboteaza) | Standard holiday |
| 7 January 2026 | Wednesday | Synaxis of St. John the Baptist (Sfântul Ioan Botezătorul) | Standard holiday |
| 24 January 2026 | Saturday | Unification Day (Ziua Unirii Principatelor Române) | Standard holiday |
| 10 April 2026 | Friday | Orthodox Good Friday (Vinerea Mare) | Standard holiday |
| 12 April 2026 | Sunday | Orthodox Easter Day (Paștele) | Standard holiday |
| 13 April 2026 | Monday | Orthodox Easter Monday (Doua zi de Paști) | Standard holiday |
| 1 May 2026 | Friday | Labour Day (Ziua Muncii) | Standard holiday |
| 31 May 2026 | Sunday | Orthodox Pentecost (Rusalii) | Standard holiday |
| 1 June 2026 | Monday | Orthodox Pentecost Monday (Doua zi de Rusalii) | Standard holiday |
| 1 June 2026 | Monday | Children’s Day (Ziua Copilului) | Standard holiday |
| 15 August 2026 | Saturday | Dormition of the Theotokos (Adormirea Maicii Domnului) | Standard holiday |
| 30 November 2026 | Monday | Saint Andrew’s Day (Sfântul Andrei) | Standard holiday |
| 1 December 2026 | Tuesday | National Day (Ziua Națională) | Standard holiday |
| 25 December 2026 | Friday | Christmas Day (Crăciunul) | Standard holiday |
| 26 December 2026 | Saturday | Second Day of Christmas | Standard holiday |
Sick Days
As of August 1, 2025, Romania has introduced a new tiered system for calculating sick leave indemnities for temporary work incapacity due to common illnesses or non-work related accidents. Instead of a flat 75% rate, the indemnity is now 55% for up to 7 days of leave, 65% for 8-14 days and 75% for 15 days or more, based on the employee’s average income over the past six months. However, higher rates may apply depending on the illness. Sick leave certificates issued before this date remain subject to the old rules and detailed secondary legislation is still under public consultation.
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.
The first five calendar days are provided by the employer for working days only. From the 6th calendar day, the FUNASS (Unique National Fund of Health Insurances) fund supports the payment of sick leave.
Maternity Leave
A pregnant employee is entitled to 126 days of paid maternity leave.
Maternity leave consists of two periods, prenatal leave, which is the period where a woman must take a minimum of 63 days before the expected due date, and postnatal leave, where the employee must take the remaining 63 days after the birth of the child.
The actual days across the two periods are stipulated by the employee’s physician and reported in the official medical certificate of maternity.
The maternity payment is paid by the FUNASS (Unique National Fund of Health Insurances) at a rate of 85% of the calculation based on the average of the employee’s monthly gross wages during the six months before the maternity leave started.
In addition, employees are entitled to take leave to protect their own and their child’s health and safety. The maternal risk-benefit is completely supported with funds from the Unique National Fund of Health Insurances. The amount of benefit is 75% of the average gross earnings over the last six months. Maternal risk leave is complementary to maternity leave. In these cases, the employee is required to write a request to the employer and provide a medical certificate from the doctor for the child’s sickness.
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. The possibility to benefit from paternity leave is during the first eight weeks after the birth of the child, based on the written request addressed to the employer. The employee is legally required to provide the birth certificate of the child.
The paternity leave allowance is paid from the employer’s salary fund and is included in the taxable income of the employee.
In the case of the death of the child’s mother during childbirth or during maternity leave, the child’s father is entitled to the following benefits, as the case may be:
a) an allowance equal to the maternity allowance due to the deceased mother if the father does not complete the insurance period to benefit from the right to medical leave.
b) a maternity-related allowance granted in accordance with the father’s income, for the case when he fulfills the insurance period to benefit from the right to medical leave.
This allowance is borne from the salary fund of the employer where the father works.
Parental Leave
After maternity leave, one of the parents is eligible for childcare leave of two month (parental leave) until the child reaches two years of age (three years of age in the case of disabled children), provided that the employee has contributed to tax during the past year of employment.
The employee is entitled to receive a monthly allowance from the appropriate Romanian authorities amounting to 85% of the average regular salary received in the last 12 months before childbirth. The employee is legally required to provide the written request from the employee, the birth certificate of the child, and a declaration that the other parent is not on maternity leave. Monthly allowance for children born from twin, triplets or multiples is supplemented by 50% starting with the second child.
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.
Employees are entitled to up to three days of paid bereavement leave in the case of the death of a direct family member. In these cases, the employee is required to provide the death certificate and a request from the employer.
Employees are entitled to five days of paid wedding leave and two days of paid leave in case of the wedding of an employee’s child. In this case, the employee is required to request the employer to go on leave and after the wedding, provide the wedding certificate.
PAID MATERNITY LEAVE (DAYS)
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.
Individual employment contracts can be terminated by means of
- By law
- By mutual consent of the parties
- By either party of the employment contract within the terms and conditions provided by the law
Employers may terminate employment contracts by dismissal for reasons related to the employee e.g. poor performance (with a PIP in place), professional inadequacy as a disciplinary sanction) or for reasons not associated with the employee e.g. job cancellation.
It is common to terminate using a Mutual Termination Agreement (MTA).
| Salary payment interval / date | Final payment on termination | Bank account/payment-method requirement |
|---|---|---|
| The employment contract must specify the pay period (“periodicity and means of payment” must be included). Monthly payments are standard. | On termination, all wages and other sums due must be paid. The law specifies that payments owed must be settled at the time of contract termination or as per contract/collective agreement. | Remuneration must be paid in money. |
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.
Employees may also terminate their employment agreement by resignation with prior notice of a maximum of 20 business days for non-management positions and 45 business days for management positions.
Severance Pay
There is no statutory severance pay in Romania unless conditions have been set in a collective agreement.
Probation Period
The probationary period in Romania is dependent on the type of role and is stipulated within the employment agreement. In general, probation periods are 90 calendar days increasing to 120 calendar days for an employee in a managerial/supervisory position.
Common Benefits
- Meal vouchers- one per worked day for a maximum amount of RON 15.18 per voucher. The monthly number of meal vouchers granted cannot exceed the number of working days. The meal vouchers are subject only to income tax.
- Gifts – includes gift vouchers and holiday gifts. These are non-taxable if the value for each individual person does not exceed 150 RON.
- Cultural vouchers – amounts that do not exceed 150 RON per month, or 300 RON if they are offered on occasion. These vouchers are subject only to income tax.
- Holiday vouchers– can be granted by the employer only if in the previous year the fiscal results indicate profit at a maximum amount of six minimum gross wages guaranteed in payment. The holiday vouchers are subject only to income tax if granted according to the law.
- Transportation to and from work- non-taxable benefit in kind (it is not subject to taxation in Romania).
- Private Health granted by the employer- non-taxable benefit in kind in the limit of 400 EUR per year. The amount exceeding this cap is subject to income tax and social charges.
- Private Pension granted by the employer- non-taxable benefit in kind in the limit of 400 EUR per year. The amount exceeding this cap is subject to income tax and social charges.
- Developmental courses – also includes training offered by the employer related to the work performed by the employee. This is not a taxable benefit as per local law provisions.
- Phone and Internet allowance – between 100 to 200 RON per month
Immigration
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.
Foreign workers must obtain work authorization from the Romanian Office for Immigration via an application from the employer. Employers must prove that they are a legitimate business in Romania and that they have made every effort to recruit a Romanian national to fill the role.
They must also ensure that the proposed employee is suitably qualified, having had suitable education and training, for the role.
There are several types of work permits that may be applied for and subsequently completed and submitted to the General Inspectorate of Immigration by the employer:
- Work permit for permanent workers: For foreign employees who have an indefinite or fixed-term employment contract.
- Cross-border worker: A foreign employee who is from a country that borders Romania and has an indefinite or fixed-term employment contract.
- Highly qualified worker: A foreign employee that has obtained a highly skilled job in Romania. The term of employment must be for at least one year.
Most work permits are valid for one year, however, permits for highly skilled workers are valid for two years.
VAT
General
VAT is 19% standard rate.
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Payroll and Benefits Guide
in Romania
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day (Anul Nou) | Standard holiday |
| 2 January 2026 | Friday | Day after New Year’s Day | Standard holiday |
| 6 January 2026 | Tuesday | Epiphany (Boboteaza) | Standard holiday |
| 7 January 2026 | Wednesday | Synaxis of St. John the Baptist (Sfântul Ioan Botezătorul) | Standard holiday |
| 24 January 2026 | Saturday | Unification Day (Ziua Unirii Principatelor Române) | Standard holiday |
| 10 April 2026 | Friday | Orthodox Good Friday (Vinerea Mare) | Standard holiday |
| 12 April 2026 | Sunday | Orthodox Easter Day (Paștele) | Standard holiday |
| 13 April 2026 | Monday | Orthodox Easter Monday (Doua zi de Paști) | Standard holiday |
| 1 May 2026 | Friday | Labour Day (Ziua Muncii) | Standard holiday |
| 31 May 2026 | Sunday | Orthodox Pentecost (Rusalii) | Standard holiday |
| 1 June 2026 | Monday | Orthodox Pentecost Monday (Doua zi de Rusalii) | Standard holiday |
| 1 June 2026 | Monday | Children’s Day (Ziua Copilului) | Standard holiday |
| 15 August 2026 | Saturday | Dormition of the Theotokos (Adormirea Maicii Domnului) | Standard holiday |
| 30 November 2026 | Monday | Saint Andrew’s Day (Sfântul Andrei) | Standard holiday |
| 1 December 2026 | Tuesday | National Day (Ziua Națională) | Standard holiday |
| 25 December 2026 | Friday | Christmas Day (Crăciunul) | Standard holiday |
| 26 December 2026 | Saturday | Second Day of Christmas | Standard holiday |
What happens if our employee works the standard 40 hours + 8 hours in overtime a week?
In Romania, a standard workweek is 40 hours, and an additional 8 can be worked in overtime. Above this, employers can be fined 3,000 RON when an employee works more than this. However, it is important to note that the employee is not entitled to overtime compensation when they chose to work overtime on their own, either the employer must request this or overtime must be carried out due to an emergency and work could not have been completed during normal working hours. In addition, the average work hours per week is taken over a period of 4 months, so this means that an employee could technically work more than 48 hours in one week.
Deduction of Social insurance contribution – 25% from the expact(non EU national) will that refund to employee when contact period over or what happen with it?
Hi, Anju. It depends on the country where the ex-pat is from. Usually, the contribution is recognized in the resident country where retirement/pension funds will come from and with which Romania has an agreement.
Hi David, thank you for your question. The purpose of this service is to provide answers to general questions in the world of employment. Specific questions about Papaya’s services should be addressed to this page https://www.papayaglobal.com/contact-us/
In what cases can an employer unilaterally change the terms of an employment agreement?
Hi Nicholai, thank you for your question. In general, any changes to the employment agreement must be agreed upon by the employer and employee through an addendum to the original contract. There are only 2 things that an employer can change without the employee’s consent, which are relocation and secondment.
Is there any special taxation policy for IT companies
Hi Tatevik, taxation on companies is not in the scope of what we offer, I suggest that you speak with someone who specializes in that.
How much is the travel allowance? The maximum non-taxable amount
Hi, in Romania, the minimum daily travel allowance is 20 RON, and the maximum non-taxable daily travel allowance is 50 RON.
what is the mileage reimbursement rate in Romania
The rate is determined by the number of kilometres travelled and the consumption of the vehicle type.
Is paid paternity leave paid by the employer or the state?
Paternity leave is paid for the first five days by the employer. From the 6th day on, the state will pay them.
hello there,just wanna ask if a worker can request a copy of his payslip during salary day so that he can compute how much wage they gained during their work plus overtime.thank u
Yes, they can.
Hello, What net expense allowances may I give an employee and how much are they?
There are different allowances or common benefits that employers may opt to provide. Usually, a taxable allowance is given.
How much would the transportation (commuting) allowance be?
Hi, in Romania, the minimum daily travel allowance is 20 RON, and the maximum non-taxable daily travel allowance is 50 RON.
what it the average budget for Developmental courses and training gym subscription
There is not specific budget on developmental training courses, it really depends on the type of training that is required. For Gym membership, a common allowance would be around 45/50 Euros per month.