Employer of Record (EOR) in Romania: How to Hire, What It Costs, and How to Stay Compliant

An Employer of Record (EOR) in Romania lets a foreign company hire Romanian employees legally without setting up a local entity. The EOR becomes the legal employer — running payroll in lei, withholding tax, and filing contributions — while you keep operational control. Romania is unusual: the employer pays just 2.25% on top of gross (among the lowest in the EU), because almost all social contributions sit with the employee, alongside a simple flat 10% income tax.

Romania is one of Europe’s fastest-growing markets, with a large, skilled, multilingual workforce and competitive costs. Employment is governed by the Labour Code, and every contract must be registered before work begins. An EOR is a fast, low-risk way to hire and stay compliant while you focus on your business.

Key benefits of hiring in Romania through an EOR

• No need to establish a Romanian subsidiary
• Full compliance with Romanian labour and tax legislation
• Streamlined payroll, HR, and statutory reporting
• Quick market entry and flexible workforce management
• Access to local HR and legal expertise

Why choose an EOR in Romania?

An EOR acts as the legal employer of your team while you keep full control of daily operations. It is ideal for building a team, testing the market, or hiring a key individual — without incorporating and taking on Romanian payroll, ReviSal registration, and reporting obligations directly.

How much does it cost to employ someone in Romania in 2026?

Romania stands apart: the employer pays only a 2.25% labour-insurance contribution (CAM) on top of gross — almost nothing by European standards — because pension and health contributions are paid by the employee. The trade-off is that the employee’s deductions are high (35% contributions plus 10% tax), so net pay is proportionally lower. The example below uses RON 8,000/month gross (≈€1,570).

Romania at a glance

Employment framework

Employment contracts

Employment is governed by the Labour Code. Contracts must be in writing and in Romanian, and must be registered in ReviSal (the General Register of Employees) before work begins. Contracts may be indefinite or fixed-term.

Probation period

Up to 90 calendar days for execution (standard) positions and 120 calendar days for management roles.

Working hours

The standard is 8 hours per day, 40 hours per week, with a maximum of 48 hours per week including overtime, averaged over 4 months.

Minimum wage (2026)

The gross minimum wage is RON 4,050/month in the first half of 2026 (the January increase was postponed), rising to RON 4,325/month from 1 July 2026 (about €850, up roughly 7%). A higher minimum applies in construction. Employees paid exactly at the minimum wage benefit from a tax-free allowance — RON 300/month until June and RON 200/month from July — exempt from income tax and contributions.

Payroll & taxation

Income tax & contributions

Romania applies a flat 10% personal income tax. Social contributions are unusual in that they fall almost entirely on the employee: 25% pension (CAS) + 10% health (CASS), deducted from gross, while the employer pays only the 2.25% labour-insurance contribution (CAM). Income tax is charged at 10% on the base remaining after CAS and CASS. Standard VAT is 21% (raised in 2025) and corporate income tax is 16%.

Employee benefits & leave

• Annual leave: a minimum of 20 paid days per year, with part taken as a continuous block.
• Public holidays: around 15 national holidays (expanded in recent years), including New Year, Epiphany, Union Day, Easter, Labour Day, Children’s Day, National Day, and Christmas.
• Sick leave: the employer pays the first 5 days at 75% of salary; the state covers longer absences (subject to a contribution history of at least 6 of the previous 12 months).
• Maternity leave: 126 days at 85% pay, funded by the state.
• Paternity leave: 5 days (up to 15 with a childcare course).
• Common extras: meal vouchers, private health insurance, transport allowances, and training are frequently offered.

Termination & notice periods

Employment can be ended by either party with written notice. The employer must give a minimum of 20 working days’ notice; an employee resigning gives 20 days (non-managerial) or 45 days (managerial). There is no statutory severance unless provided by a collective agreement. An EOR ensures all termination steps follow the Labour Code and documentation standards.

Work permits & immigration

EU/EEA and Swiss citizens work freely in Romania. Non-EU nationals generally need a work and residence permit, subject to an annual quota. An EOR can coordinate permit applications and registration with the Romanian authorities.

NDA & IP rights

Confidentiality clauses are enforceable where reasonable. Non-competition clauses are valid only if limited in time and scope and accompanied by monthly compensation of at least 50% of average earnings. Intellectual property created during employment generally belongs to the employer.

What changed for 2026

• Minimum wage rises mid-year: frozen at RON 4,050 for January–June, then RON 4,325 from 1 July 2026 (about +7%).
• Higher VAT: the standard VAT rate is 21% (raised from 19% in August 2025).
• Dividend tax up: the tax on dividends increased to 16% from 2026.
• Minimum-wage allowance tapering: the tax-free allowance for minimum-wage earners reduces from RON 300 to RON 200/month mid-year.
• Tougher enforcement: fines for undeclared work rose to RON 40,000 per person (up to RON 1 million), making compliant employment essential.

Frequently asked questions