Romania Employment Law & Compliance Guide for Employers
Key employment laws in Romania: what employers need to know
Employment in Romania is governed mainly by Law 53/2003, the Codul muncii [Labour Code], with contributions and income tax set by the Fiscal Code and every contract recorded in the REGES-ONLINE register of employees kept by the Labour Inspectorate. Foreign employers are often surprised that the employee, not the employer, pays almost all social contributions, that dismissal grounds are strictly limited, and that hiring non-EU workers moved in 2026 to a new online system under GEO 32/2026. This page summarises the core employer rules with official sources.
Romania employment rules at a glance
| Topic | What the rule is | Official source |
|---|---|---|
| Minimum wage | RON 4,325 gross a month for full-time work from 1 July 2026 (RON 4,050 from January to June 2026), about RON 25.85 an hour. Construction has a higher sector minimum of RON 4,582. | EURES – living and working conditions in Romania (European Commission) |
| Standard working hours | 8 hours a day, 40 hours a week. Including overtime, the week may not exceed 48 hours on average over a reference period of up to 4 months, which a collective agreement can extend. | Labour Code – Law 53/2003 (legislatie.just.ro) |
| Overtime pay | Overtime must first be compensated with paid time off within 90 calendar days. If that is not possible, it is paid with a supplement of at least 75% of base salary. Overtime generally needs the employee's consent. | EURES – living and working conditions in Romania (European Commission) |
| Paid annual leave | At least 20 working days a year, with at least 10 consecutive working days taken in one block. At least 3 extra days apply to employees under 18, people with disabilities and those in harsh or dangerous conditions. | EURES – living and working conditions in Romania (European Commission) |
| Public holidays | 17 public holidays: 1–2 Jan, 6–7 Jan, 24 Jan, Orthodox Good Friday, Easter Sunday and Monday, 1 May, 1 June, Orthodox Pentecost Sunday and Monday, 15 Aug, 30 Nov, 1 Dec, 25–26 Dec. Holiday work earns time off or a 100% supplement. | Labour Code – Law 53/2003, art. 139 (legislatie.just.ro) |
| Sick leave | Medical leave needs a doctor's certificate. The employer pays the indemnity for the first 5 calendar days, then the health insurance fund (FNUASS) pays. Rates are up to 75% of average gross earnings, and 100% for certain serious illnesses. | EURES – living and working conditions in Romania (European Commission) |
| Maternity and parental leave | 126 calendar days maternity leave at 85% of average gross earnings, then paid childcare leave until the child turns 2 (3 if disabled) at 85% of average net income, within limits. Fathers get at least 10 working days of paid paternity leave. | EURES – living and working conditions in Romania (European Commission) |
| Probation period | Up to 90 calendar days for regular roles and 120 days for management roles. Fixed-term contracts have shorter caps of 5 to 45 working days depending on length. Either party can end the contract during probation by written notice. | Labour Code – Law 53/2003 (legislatie.just.ro) |
| Notice period | At least 20 working days when the employer dismisses for reasons not related to the employee or for professional unsuitability. An employee who resigns gives up to 20 working days, or up to 45 for management roles. | Labour Code – Law 53/2003 (legislatie.just.ro) |
| Severance pay | None required by law. Severance is owed only if a collective agreement, the employment contract or an internal redundancy plan provides it. Collective redundancies require consultation and notice to the labour inspectorate and employment agency. | Labour Code – Law 53/2003 (legislatie.just.ro) |
| Employer social contributions | 2.25% work insurance contribution (CAM) on gross pay, with no cap. An extra pension contribution of 4% (particular conditions) or 8% (special conditions) applies to certain hazardous jobs. | PwC Worldwide Tax Summaries – Romania, other taxes (reviewed September 2026) |
| Employee social contributions | 35% of gross pay, with no cap: pension (CAS) 25%, of which 4.75% goes to the private pension pillar, and health insurance (CASS) 10%. The employer withholds and pays both. | PwC Worldwide Tax Summaries – Romania, other taxes (reviewed September 2026) |
| Income tax on salaries | Flat 10% on gross pay minus contributions and any personal deduction, withheld monthly by the employer. Minimum-wage earners have RON 200 a month exempt from tax and contributions from 1 July 2026 (RON 300 before). | EURES – living and working conditions in Romania (European Commission) |
| Mandatory bonuses and 13th-month pay | None required by law. Mandatory extras are the overtime supplement (at least 75% if no time off), night-work supplement (25% or shorter hours) and public-holiday supplement (100% if no time off). Meal vouchers and bonuses are optional. | Labour Code – Law 53/2003 (legislatie.just.ro) |
| Work permits for foreign nationals | Under GEO 32/2026, registered or authorised employers file a single online application on WorkinRomania.gov.ro for a D/AM1 (highly qualified and some nationalities) or D/AM2 (shortage occupations) work visa, then the worker obtains a residence permit. | WorkinRomania.gov.ro – employers (Government of Romania) |
| Employment contract requirements | Written contract in Romanian, signed before work starts, with a copy for the employee. Register it in REGES-ONLINE, the electronic register of employees, no later than the day before the start date. | Labour Inspectorate – REGES-ONLINE register |
Employer obligations in Romania, topic by topic
Filter by primary service relevance
Does an employment contract in Romania have to be in writing and registered?
What are the working hours and overtime rules in Romania?
What is the minimum wage in Romania in 2026?
How much leave do employees get in Romania?
How much does an employee cost in Romania on top of gross salary?
How can an employer dismiss an employee in Romania, and is severance required?
How does a company hire a non-EU national in Romania in 2026?
Is it risky to use contractors instead of employees in Romania?
Key employment laws in Romania and official sources
- Law 53/2003 – Labour Code (Codul muncii) — Contracts, working time, leave, pay, dismissal grounds and procedures, and the register of employees.
- Law 227/2015 – Fiscal Code — Income tax, CAS, CASS and CAM rates, payroll withholding and the criteria for independent activity.
- Government Emergency Ordinance 32/2026 on foreigners’ access to the labour market — D/AM1 and D/AM2 work visas, registered and authorised employers, placement agencies and the WorkinRomania.gov.ro platform.
- Government Emergency Ordinance 194/2002 on the regime of foreigners in Romania — Visas, residence permits and their extension, including on change of employer.
- General register of employees (REGES-ONLINE) — Electronic recording of every hire, change and termination with the Labour Inspectorate.
FAQs: hiring employees in Romania
Can a foreign company hire employees in Romania without a local entity?
It is possible but complex: the employer must register for Romanian tax and contribution purposes and record every contract in REGES-ONLINE, which requires a Romanian employer account. Sponsoring non-EU workers under GEO 32/2026 also requires a registered employer. Most foreign companies therefore hire through an Employer of Record, which employs the person locally and runs payroll, or set up a subsidiary or branch.
How much does an employee cost in Romania on top of gross salary?
Very little: the employer adds the 2.25% work insurance contribution (CAM), or 4–8% more for jobs in particular or special working conditions. Romania moved pension (25%) and health (10%) contributions to the employee in 2018, so they come out of gross pay together with 10% income tax. Optional costs include meal vouchers, private health cover and any collective-agreement bonuses.
What is the minimum wage in Romania in 2026?
The national gross minimum wage is RON 4,325 a month for full-time work from 1 July 2026, up from RON 4,050 in January–June 2026. That is about RON 25.85 an hour and about RON 2,699 net. Construction has a higher sector minimum of RON 4,582 a month. Part-time staff receive the minimum pro rata.
How much notice and severance does an employer owe when dismissing an employee in Romania?
The employer must give at least 20 working days’ notice when dismissing for professional unsuitability, medical incapacity or job elimination; dismissal for serious misconduct needs no notice but requires a disciplinary investigation. The Labour Code does not require severance pay, but collective agreements or contracts often provide it. Collective redundancies need consultation and notice to the authorities.
Can a company hire a foreign national in Romania, and what permit is needed?
Yes. EU, EEA and Swiss citizens need no permit. Others need a D/AM1 or D/AM2 work visa under GEO 32/2026, requested through a single online application on WorkinRomania.gov.ro, followed by a residence permit from IGI. D/AM1 covers highly qualified workers and some nationalities; D/AM2 covers shortage occupations and is currently paused because a court suspended the shortage-occupation list.
Is it risky to engage contractors instead of employees in Romania?
Yes, if the contractor works like an employee. The Fiscal Code treats an activity as independent only if it meets at least 4 of 7 criteria, such as freedom to set hours, several clients and own equipment. Otherwise ANAF can reclassify the income as salary and collect contributions and tax with penalties, and the Labour Inspectorate can fine undeclared work at RON 20,000 per person.
Related NNRoad resources for Romania: Employer of Record in Romania · Payroll in Romania · Hiring foreign employees in Romania · Contractors and on-demand talent in Romania · Romania employer cost calculator
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Regulation Updates in Romania
Government Emergency Ordinance No. 32/2026 on the access of foreigners to the Romanian labour market
What it is: A new government ordinance introduces a unified digital platform and related compliance requirements for accessing the Romanian labor market by foreigners.
What it changes: It establishes WorkinRomania.gov.ro as a single digital platform, introduces a List of Shortage Occupations, and imposes new employer registration, financial guarantee, reporting, and compliance obligations tied to work permits that employers must operationalize.
Who is affected:
- Employers
- Foreign workers (implied by access to labor market)
What employers should do:
- Prepare for and implement the new digital platform requirements and registration processes.
- Align hiring practices with the List of Shortage Occupations and associated permit reporting and compliance obligations.
Notes: Effective month: 2026-05.
Emergency Ordinance No. 32/2026 on the access of foreigners to the labor market in Romania and for the amendment and completion of certain normative acts
What it is: Emergency Ordinance No. 32/2026 establishes a new digital single-application system (WorkinginRomania.gov.ro) for access of foreigners to the labor market and requires employer registration and authorization of placement agencies, with new employer obligations and sanctions tied to work permits.
What it changes: The policy introduces a digital single-application system for foreigners seeking to work, mandates registration of employers, and requires authorization for placement agencies, along with new employer obligations and sanctions related to work permits.
Who is affected:
- Employers
- Placement agencies
- Foreign workers seeking access to the labor market
What employers should do:
- Register with the system as required
- Ensure authorization for placement agencies involved in recruitment
- Comply with any new obligations related to work permits
Notes: Effective month: 2026-04.
Sep 2025: Immigration Enforcement: Romanian Foreign Nationals Removal & Employer Sanctions
In September 2025, Romania intensified its immigration enforcement efforts, focusing on the removal of foreign nationals under escort and imposing sanctions on non-compliant employers. This policy update emphasizes Romania’s commitment to maintaining strict immigration controls and ensuring legal compliance for foreign workers operating within its borders.
Update first published on NNRoad in Sep 2025. The current rules are summarised in the sections above.
Discover the latest employment and compliance updates in Romania — helping you stay ahead in a changing regulatory landscape.