☑️ The Basics

Currency: Romanian leu (RON) (Rate)

Public Holidays: 15 public holidays (see here)

Employer Taxes: 6.25% of gross salary

Official Language: Romanian

Payroll frequency: Monthly

13th Salary: (what's this?) ****The 13th month bonus is considered a gratuity and is not required by local law

Three things to know about employing in Romania

Employees get at least 20 paid vacation days per year, of which an employee must take at least one unbroken period of ten working days of vacation each year. All vacation days must be used during the year in which they are earned. The right to annual leave cannot be subject to any waiver, assignment, or limitation.
Employers must pay the employee a monthly stipend during the non-compete period. The total amount paid over the course of the non-compete period cannot be lower than 50% of the employee's gross salary during the last six months of employment.
There is no general statutory requirement for employers to make severance payments to employees whose employment is terminated.

Employment in Romania

Notice Period

In the absence of misconduct, the notice period for employers and employees must be no less than:

20 days for standard positions
45 days for management positions

If the employee resigns, the employer has the right to waive the notice period and terminate the contract at any time before the end of the notice period.

Termination & Severance

Severance pay is not mandated by the country's labour law.

Probationary period

90 calendar days for standard positions
120 calendar days for management positions

Minimum Wage

The minimum wage is RON 2,230 per month. For individuals with higher education and a minimum of one year's work experience, the minimum wage is RON 2,350 per month.

For the employees in the construction field, the minimum wage is RON 3,000 per month.

IP protection and non-compete agreements

Non-compete agreements can only be enforced for a maximum of two years after the termination of the employment contract. The agreement must clearly spell out all obligations and the employee must receive a monthly payment for adhering to the agreement.

Employers must pay the employee a monthly stipend during the non-compete period. The total amount paid over the course of the non-compete period cannot be lower than 50% of the employee's gross salary during the last six months of employment.

Working Hours

Eight hours a day, five days a week (a maximum number of 40 hours per week) with two consecutive days of rest — usually Saturday and Sunday. The maximum legal length of working time may not exceed 48 hours per week, including overtime.

Overtime

Overtime can be compensated by giving the employee paid time off equal to the overtime worked (taken within 60 days of earning the overtime), or by paying a premium of at least 75% of their base salary for the overtime hours worked.

Paid Holidays

Employees are entitled to paid vacation leave of 20 working days per year.

Sick pay and time off

Employees are entitled to five days of sick pay of 75-100% of their base salary (depending on their condition), paid for by the employer. Longer leaves are paid for by the state.

Employees covered by the pension and social insurance system who have made required contributions can take up to 180 days of sick leave per year, paid at 75% of their average monthly income.

Parental leave

Employees who have worked for at least one month in the last 12 months are entitled to maternity leave of 126 calendar days (usually split into 63 days before birth and 63 after birth). The first 42 days of leave after childbirth are compulsory. During this period, employees are paid an allowance equal to 85% of their average salary during the previous six months; this is fully incurred by the National Social Security Fund.

Fathers can take five working days' paternity leave within the first eight weeks of the child's birth, which may be extended to 15 working days if they participate in childcare courses.