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Employer of Record Romania
Hire staff and expand your business in Romania with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Romania designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Romania. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Romania takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Romania
A Brief Guide to Romania
In Romania, the business culture values professionalism, relationships, and a certain level of formality. Being punctual, dressing appropriately, and engaging in small talk are essential. Decision-making is often hierarchical, and trust is crucial in business dealings. Romanians respect expertise and thorough preparation for meetings.
Category | Information |
Location | Southeastern Europe |
Capital | Bucharest |
Official Language | Romanian |
Area | 238,397 square kilometers |
Population | Approximately 19 million |
Currency | Romanian Leu (RON) |
Major Cities | Bucharest, Cluj-Napoca, Timisoara, Iasi, Constanta |
GDP (2021) | $248 billion USD |
Major Industries | Automotive, IT, energy, tourism, agriculture, textiles |
Business Culture
Business Culture in Romania
Romania is known for its picturesque landscapes, rich history, and vibrant culture. The country is home to the Carpathian Mountains, the Danube Delta, and the legendary region of Transylvania. Romania is a semi-presidential republic and a member of international organizations such as the European Union, the Schengen Area, and the United Nations.
Adherence to proper business etiquette, such as exchanging business cards and addressing individuals by their titles, is customary. Success in Romanian business culture requires adaptability, respect, and a focus on relationship-building.
Payroll and Taxes
Payroll and Taxes in Romania
There is no statutory requirement in Romania to pay a 13th or 14th month salary.
Employee Taxation
In Romania, income tax rates are flat:
Gross Annual Income | Tax Rate (%) |
Up to RON 360,000 | 10% |
Employer Taxation
Employers in Romania are also responsible for various employer costs, which include:
| Fund Type | Percentage |
|---|---|
| Social Security | 2.25% |
Pension and Healthcare
Romania Pensions
In Romania, there is a mandatory state pension system, funded by social security contributions from both employees and employers. The contribution rates, as a percentage of an employee’s gross salary, are as follows:
- Employees: 25% for pension and disability insurance
- Employers: 0-8% depending on the working conditions
Healthcare in Romania
Romania’s public healthcare system provides comprehensive medical services to its residents, including primary care, specialist services, hospital care, prescription medications, dental care, maternity care, and mental health services. The system aims to ensure equal access to essential healthcare services for all residents, regardless of their financial status or geographical location.
Employees contribute to the system through a 10% contribution from their salary. This mandatory contribution is collected by the Romanian tax authorities and allocated to the healthcare system.
The system’s funding structure, which combines social health insurance contributions, government subsidies, and general tax revenues, helps maintain its stability and sustainability.
Employment Law
Employment Law in Romania
Relevant Legislation: The regulation of employment matters in Romania is primarily guided by the 2003 Labour Code, which covers aspects such as working hours, holidays, rest periods, wages, overtime, and employment relationships.
Employment Contracts: Romanian employment contracts should be in writing and include essential information such as duration of employment, working hours, salary, and termination notice periods.
Working Hours: The maximum working time in Romania is 48 hours per week inclusive of overtime.
Leave: Employees in Romania are entitled to various types of leave, including paid annual leave (minimum of 20 working days per year), maternity leave, paternity leave and sick leave.
Overtime: Overtime refers to any work carried out beyond 40 hours per week or 8 hours per day, and the employee is entitled to additional compensation in the form of paid time off or an equivalent benefit amounting to at least 75% of their basic salary.
Termination: Termination of employment in Romania requires proper notice, which varies depending on the length of employment. Employers can terminate an employee’s contract if there is a just cause, such as poor performance, misconduct, or redundancy. Employers must provide a written explanation for the termination based on just cause. Unjustified termination can lead to claims for damages or reinstatement.
Notice: Both employers and employees must give a notice before terminating an employment contract. The notice period varies depending on the employee’s length of service. Generally, the notice period ranges from 15 days to three months.
Severance Pay: Employees may be entitled to severance pay if they are terminated due to redundancy, restructuring, or other reasons that are not related to their performance or behavior. Severance pay is typically not provided in cases of termination due to misconduct, resignation, or the end of a fixed-term contract. The amount of severance pay an employee is entitled to often depends on their length of service with the employer. In Romania, employees must have worked for a minimum of one year to qualify for severance pay, and the amount increases with the number of years of service.
IMMIGRATION
Work Permits in Romania
The immigration process in Romania is organized and systematic, similar to most countries worldwide. Prospective immigrants usually need to apply for a specific visa or residency permit that corresponds to their reasons for relocating, such as work, education, or joining family members.
Romania offers several types of work permits for foreign nationals who wish to work in the country. The specific type of work permit required depends on the applicant’s qualifications, the nature of the job, and the intended duration of the stay. Some of the main types of work permits in Romania include:
- Skilled Worker Permit: This permit is designed for individuals who have specialized skills or qualifications that are in high demand in Romania. Applicants must have a valid job offer from a Romanian employer and must meet certain educational and professional requirements.
- Temporary Work Permit: This permit is issued for short-term employment and is generally valid for up to 12 months. Temporary work permits are typically granted for seasonal work, internships, or other temporary job opportunities.
- Family Reunification Work Permit: Foreign nationals who are married to or in a registered partnership with a Romanian citizen or a person with a permanent residence permit may be eligible for a work permit through family reunification. This permit allows the holder to work in Romania without restrictions.
Citizens of European Union (EU) countries generally do not need a work permit to work in Romania, as they benefit from the freedom of movement within the EU. However, they are required to register with the local Romanian authorities if they plan to work and stay in Romania for more than three months.
Public Holidays
Romania Public Holidays
| Holiday | Date |
|---|---|
| New Year’s Day | January 1 |
| Day after New Year’s Day | January 2 |
| Unification Day | January 24 |
| Orthodox Good Friday | Movable date |
| Orthodox Easter Day | Movable date |
| Orthodox Easter Monday | Movable date |
| Labour Day | May 1 |
| International Children’s Day | June 1 |
| Orthodox Pentecost | Movable date |
| Orthodox Pentecost Monday | Movable date |
| St. Mary’s Day | August 15 |
| Feast of St. Andrew | November 30 |
| National Day | December 1 |
| Christmas Day | December 25 |
| Second day of Christmas | December 26 |
Wondering if expanding
in Romania is right for you?
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The Benefits
Romania Employer of Record Benefits
When you choose Agility EOR to expand in Romania, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Romania so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Romanian authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Romanian payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.