Romania employment law, Romania payroll and Romania EOR planning begin with the national minimum gross base salary and the employee’s actual role, industry, workplace and contract type. The general minimum increased from RON 4,050 to RON 4,325 on 1 July 2026, while certain industries may have a different wage floor.

Before hiring employees in Romania, international employers should confirm the effective date, occupational classification, collective bargaining coverage, REGES-ONLINE registration, tax treatment and work-authorisation position. This guide explains the 2026 rules for contracts, payroll, working time, leave, social contributions, termination and Employer of Record arrangements.

1. Romania Employment Compliance at a Glance in 2026

The contractual employer remains responsible for compliant documentation, registration, payroll, working-time records, health and safety, leave, discipline and termination. In an EOR arrangement, the client should not independently change pay, discipline the employee or issue dismissal notice.

2. Three Employment and Payroll Changes Requiring Action in 2026

General minimum salary increased on 1 July. Government Decision No. 146/2026 increased the nationwide minimum gross base salary from RON 4,050 to RON 4,325 per month from 1 July 2026. Based on an average 166.667 monthly hours, the corresponding hourly rate is RON 25.949. Allowances and other additions are not included in the minimum base salary.

Conditional RON 200 tax-base relief applies from July to December. Under the conditions established by OUG No. 89/2025, up to RON 200 per month may be excluded from income tax and mandatory contribution bases for qualifying full-time minimum-wage employees. The employee’s contractual base salary must normally equal the statutory minimum and monthly gross income must not exceed RON 4,600. This is a conditional tax treatment, not permission to reduce agreed gross pay.

A temporary sickness-benefit rule reduces payment by one working day. For relevant medical certificates issued from 1 February 2026 through 31 December 2027, a temporary rule reduces the payable sickness period by one working day. Payroll teams must examine the medical-leave code, duration, payment rate and responsible payer rather than treating every sickness absence as ordinary full-pay leave.

3. Romania’s Employment Law and Regulatory Framework

Employment relationships are mainly governed by the Labour Code, Law No. 53/2003, the Fiscal Code, social-dialogue legislation, occupational health and safety rules, equality law and data-protection requirements.

The Labour Inspection Authority and territorial labour inspectorates supervise employment compliance and REGES-ONLINE reporting. ANAF administers payroll tax declarations, including Form D112. CNAS manages the health-insurance and medical-leave framework, while ANOFM administers public employment services.

An applicable collective bargaining agreement may provide rights above the statutory minimum concerning wages, allowances, hours, leave or termination. Employers should establish the legal employer, workplace, occupational classification and applicable collective agreement before finalising a contract template or payroll package.

The employment contract, payroll data and daily working arrangements must remain consistent. An English-language business summary may support the parties, but mandatory Romanian documentation and registrations should be prepared and maintained as required locally.

4. Recruitment, Offers and Onboarding

Recruitment requirements should be connected to the genuine needs of the role. Employers must avoid unlawful discrimination based on sex, age, ethnicity, religion, disability, family status or another protected ground.

An offer should distinguish gross base salary from fixed allowances, bonus or commission, meal benefits, workplace, remote-work percentage, hours, probation, contract term and intended start date. A market salary estimate is not the statutory minimum-wage analysis.

For non-EU candidates, the work-permit and residence pathway must be verified separately before onboarding. A signed offer or an EOR arrangement does not automatically provide work authorisation.

5. Employment Contracts, Contract Types and Probation

Indefinite employment is the default. A fixed-term contract is permitted only in temporary or objective circumstances recognised by law. A single fixed-term arrangement generally cannot exceed 36 months.

The same parties may generally enter into no more than three successive fixed-term contracts. A new contract concluded within three months after the previous contract ends is normally treated as successive, and subsequent contracts are generally limited to 12 months. Employers should not use repeated fixed terms to cover a permanent role.

Part-time contracts must be in writing and state the working schedule and distribution of hours. Part-time employees generally cannot be required to perform overtime, subject to narrow emergency exceptions.

Probation must be included in the employment contract. The usual maximum is:

During probation, either party may normally end employment through written notification without the ordinary notice period or a detailed statement of reasons. Final salary, accrued unused leave, earned variable pay and expenses must still be settled, and the decision must not be discriminatory or retaliatory.

6. Wages, Minimum Wage and Gross-to-Net Payroll

Salary must be paid at least monthly. The general minimum gross base salary was RON 4,050 per month from January through June 2026 and increased to RON 4,325 on 1 July.

The construction-sector reference remains RON 4,582 per month, subject to confirmation of the employer’s activity, employee coverage and current official rules.

Allowances, overtime premiums and other additions do not form part of the statutory minimum base salary.

Under the Labour Code’s 24-month rule, the national minimum base salary generally may be paid under the same individual employment contract for no more than 24 months. After that period, the employee’s base salary must be set above the applicable national minimum.

Illustrative payroll for an ordinary employee earning RON 10,000 gross per month with no personal deduction or special relief:

This example excludes personal deductions, tax relief, medical leave, benefits, special working conditions and cross-border social-security treatment.

A 13th salary, annual bonus, meal vouchers and private medical cover are not universally mandatory. They become binding when required by a collective agreement, employment contract, company policy or established practice.

7. Working Time, Overtime and Records

Standard working time is generally 8 hours per day and 40 hours per week. Average working time, including overtime, normally cannot exceed 48 hours per week, generally measured over a four-month reference period.

Employees usually receive at least 12 consecutive hours of daily rest and 48 consecutive hours of weekly rest. Employers must maintain records showing each employee’s daily starting and finishing times.

Overtime should first be compensated with equivalent paid time off within 90 calendar days. If compensatory time cannot be provided, the employee must receive a premium of at least 75% of basic salary for the overtime hours.

Night work generally covers 22:00 to 06:00. A qualifying night worker may receive reduced working time or a premium of at least 25%, depending on the statutory conditions.

Work performed on a public holiday should be compensated with time off within 30 days. If that is not possible, the employee generally receives a premium of at least 100% of basic salary for the public-holiday hours.

An all-in salary or managerial title does not automatically remove working-time and overtime protections. Remote work, travel, training and cross-border meetings must be recorded according to the employee’s actual working time.

8. Public Holidays, Annual Leave and Other Statutory Leave

Employees receive at least 20 working days of annual leave per year, accrued according to the actual employment period. Collective agreements and contracts may grant more.

Annual-leave pay is generally calculated using the daily average of base salary and permanent salary additions from the preceding three months. It must normally be paid at least five working days before leave begins.

Annual leave not taken for justified reasons should be granted during the 18 months beginning in the following calendar year. Leave cannot be replaced with cash while employment continues; compensation is permitted when the employment relationship ends.

A statutory holiday falling on a weekend does not normally generate an automatic substitute weekday. Although two holidays fall on 1 June 2026, they do not create two separate working days of leave.

Maternity leave is generally 126 calendar days. Paternity, parental, caregiver, bereavement and medical leave have separate eligibility, notice, documentation and payment rules.

For 2026 medical leave, payroll must account for the temporary one-working-day reduction rule where applicable.

9. Employer Social Security, Mandatory Benefits and Tax

Employers normally report monthly payroll taxes and contributions through Form D112. The employee’s CAS and CASS should not be described as direct employer on-costs, even though the employer calculates, withholds and remits them.

For part-time pay below the full-time minimum salary, minimum social-contribution base rules may require an employer-funded difference unless an exemption applies. Payroll should assess the employee’s circumstances each month.

Employers reaching 50 employees must also assess the disability employment quota, commonly 4%, and the applicable alternative-payment or procurement mechanism.

10. Local Employees and Foreign Employees

Romanian employees, EU/EEA/Swiss nationals and non-EU employees generally receive the same statutory employment protections. Their immigration documentation, however, differs.

Non-EU nationals usually need the appropriate work authorisation and residence status. Permission may be linked to the employer, job and workplace, so a transfer, role change or termination can affect immigration status.

Before issuing an offer, the employer should verify:

• Nationality
• Current residence purpose
• Permit validity
• Change-of-employer rules
• Approved role and workplace
• Applicable salary conditions
• Realistic onboarding date

Cross-border assignees also require review of A1 or other social-security evidence, tax residence, payroll withholding and permanent-establishment exposure.

Foreign nationality cannot justify paying below the applicable minimum wage or reducing working-time, leave, health and safety or dismissal protection.

11. Remote Work, Data Privacy and Record Retention

Under Telework Law No. 81/2018, remote work should be documented in the employment contract or an addendum.

The document should address:

• Approved remote locations
• Remote-working days
• The method for checking working time
• Equipment provision and maintenance
• Reimbursable expenses
• Occupational health and safety
• Confidentiality and information security
• Cross-border working restrictions

Working from home does not remove the employer’s obligation to maintain daily time records or manage occupational health and safety.

Cross-border remote work requires advance assessment of immigration, tax residence, permanent establishment, social security and payroll.

Employee information is protected by the GDPR and Law No. 190/2018. Health, disciplinary, performance and family information must follow purpose limitation, data minimisation, access-control and retention requirements.

Before transferring employee data to China or another country outside the EEA, the employer must implement a lawful international transfer mechanism and appropriate security safeguards.

12. Termination, Severance and Final Settlement

An employer cannot ordinarily dismiss an employee without legal grounds simply by paying notice.

Redundancy must be based on a genuine, effective and serious elimination of the position. Professional inadequacy, medical incapacity and disciplinary dismissal each require a distinct substantive ground and procedure.

Romania has no universal statutory severance formula for all ordinary employees. Severance can arise under legislation, a collective bargaining agreement, the employment contract or a social plan.

Collective redundancy rules generally apply where, within 30 days, the proposed dismissals reach:

Where the threshold is met, consultation and notification procedures involving employee representatives or the union, the labour inspectorate and the employment agency apply.

Final settlement should cover:

• Salary through the termination date
• Unused annual leave
• Earned commission or bonus
• Approved expenses
• Notice entitlements
• Contractual or collective severance
• Required employment documentation
• Applicable payroll deductions

13. Hiring Model: Entity, EOR or Payroll Outsourcing

The choice should consider team size, expected duration, role management, client-site arrangements, immigration, permanent-establishment exposure and exit cost.

The commercial label “EOR” does not replace a Romanian licensing and substance analysis. EOR feasibility must be assessed separately from work-permit sponsorship.

sailglobal can support employment-structure assessment, payroll and employee-lifecycle management. The final model must be confirmed against the actual role, workplace, contractual parties and management arrangements.

14. Common Romania Employment Risks for Chinese Companies