Romania Employment Guide

Romania is in Eastern Europe, adjacent to the Black Sea and located at a major European transportation hub. It has ~19 million people; key industries include auto manufacturing, IT, energy, agriculture and services, with Bucharest as the capital and economic center. As an EU member state, it has relatively low labor costs but high education levels and multilingual capabilities, attracting many foreign-funded enterprises. Its labor laws are mainly regulated by the Labor Code, emphasizing the written form of labor contracts. The standard workweek is 40 hours, and employers are required to guarantee minimum wages and social insurance. Employment relations are relatively stable, with dismissals requiring valid reasons and compliance with dismissal procedures.

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Currency

Romanian Leu (RON)

Capital

Bucharest

Official language

Romanian

Salary Cycle

Monthly

Our Employment Guide in Romania

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Minimum Wage Requirements in Romania

Romania maintains a statutory minimum wage of 3,700 Romanian Leu per month for full-time employees. This baseline compensation is subject to annual review and adjustment based on economic factors.

Personal Income Tax Structure

Romania employs a flat-rate income tax system with a consistent 10% rate applied to employee earnings. This simplified tax approach provides predictability for both workers and employers in payroll calculations.

Employer Social Contribution Costs

Beyond gross salary expenses, employers should anticipate additional social contribution costs averaging approximately 2.25% of employee compensation. These mandatory contributions fund various social security programs.

Standard Working Hours and Overtime Regulations

The Romanian labor framework establishes a standard workweek of 40 hours, typically distributed across five eight-hour days from Monday through Friday.

Overtime Compensation Requirements

Overtime work is strictly regulated and requires mandatory compensation. Employees may work up to 32 overtime hours monthly, with two primary compensation methods:

Paid time off equivalent to overtime hours worked
Additional monetary compensation

Overtime Compensation Timelines

Romanian law specifies clear deadlines for overtime settlement:

Overtime Type	Compensation Deadline
Regular weekday overtime	90 calendar days via paid leave
Public holiday overtime	30 calendar days via paid leave

If paid leave cannot be provided within these timelines, employers must convert overtime to monetary compensation at premium rates in the following pay period.

Practical Considerations for International Employers

Companies like SailGlobal frequently encounter scenarios where Romanian employees work on international projects requiring flexible scheduling. In one recent case, a technology firm successfully implemented a compensatory time-off system that complied with Romanian regulations while meeting project deadlines.

For comprehensive guidance on employment compliance and cost structures, SailGlobal's HR specialists provide tailored consultations to navigate Romania's labor landscape effectively.

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