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Global Expansion Guide

Romania

Manage and pay your employees easily with BIPO in Romania and 170+ other markets. Build your international teams today with our global Employer of Record service!

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Currency

Romanian Leu (RON)

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Language

Romanian

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Capital

Bucharest

Employer of Record Romania

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Romania

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Employer of Record Romania

Embark on your business expansion in Romania with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Romanian market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

This guide was last updated on 30 March 2026. The content in this guide is current as of this date and based on common business practices.

Employment Contract

Employment contracts must generally be concluded on an open-ended basis. Fixed-term contracts are permitted only in specific circumstances defined by law. All contracts must be mutually agreed upon, executed in writing, and drafted in Romanian. At a minimum, they must include:

  1. Identification details of both parties;
  2. Place of work, or a statement allowing work across multiple locations where no fixed site applies;
  3. Employer’s registered address or domicile;
  4. Job title, duties, and responsibilities;
  5. Role-specific risks;
  6. Contract commencement date;
  7. Duration (for fixed-term or temporary contracts);
  8. Paid annual leave entitlement;
  9. Notice period and applicable terms;
  10. Basic salary, additional remuneration components, and payment frequency;
  11. Working hours (daily and/or weekly);
  12. Applicable collective agreement, if any;
  13. Probation period.

Note: Any amendments to the above must be agreed upon in writing and formalised through a supplementary agreement within 15 days, unless otherwise stipulated by law or a collective agreement.

Statutory Contributions

Scope of Application: Applicable to employees of private enterprises.

Type of Social Insurance Contribution Base Employee Contribution Employer Contribution
Pension Insurance Total salary 25% 4% or 8% (special conditions)
Health Insurance 10% 0%
Work Injury Insurance 0% 2.25%

Minimum Wage

As of 1 January 2025, the minimum wage in Romania is RON 4,050 per month.

Public Holidays

The public holidays listed below are national public holidays observed across Romania. Please refer to official government announcements for the latest updates./p>

  • New Year’s Day
  • Second Day of New Year
  • Epiphany
  • Saint John the Baptist
  • Union of the Romanian Principalities
  • Good Friday
  • Easter
  • Second Day of Easter
  • Labour Day
  • Pentecost
  • Second Day of Pentecost
  • Children’s Day
  • Assumption of Mary
  • Saint Andrew’s Day
  • National Day
  • Christmas Day
  • Second Day of Christmas

Note: If a public holiday falls on a weekend, employers are not required to grant an additional day off, unless otherwise provided for in a collective bargaining agreement or internal company regulations.

Working Hours

Normal Working Hours

Category Daily Weekly
Full-time employee 8 hours 40 hours
Juvenile employee 6 hours 30 hours

Work Break

  • Employees working more than 6 hours are entitled to a break, as provided under collective agreements or internal company rules.
  • Juvenile employees working more than 4.5 hours are entitled to a minimum 30-minute rest break.

Daily Rest

Employees are entitled to at least 12 consecutive hours of rest between working days and at least 8 hours between shifts.

Weekly Rest

Employees are entitled to 2 consecutive rest days, typically Saturday and Sunday.

Overtime Limits

The statutory maximum working time is 48 hours per week, inclusive of overtime.

Overtime Compensation

  • Overtime must be compensated with paid time off within 30 days. If time off is not granted within this period, overtime must be paid as a salary supplement.
  • The supplement is subject to agreement under collective or individual employment contracts and must not be less than 75% of the basic salary.

Exemptions from Overtime Compensation

Certain sectors, entities, or professions may agree to daily working hours above or below 8 hours through collective agreements, individual contracts, or specific regulatory provisions.

Leave

Annual Leave

  • Employer Type: Single employer
  • Eligibility: All employees

  • Entitlement:

    • Minimum of 20 working days per year; actual entitlement is determined by applicable collective agreements or individual employment contracts and is prorated based on annual working time.
    • An additional 3 working days per year is granted to employees working in arduous, dangerous, or harmful conditions, employees with visual impairment or other disabilities, and employees under 18 years of age.
  • Allowance: Full salary paid by the employer
  • Cash-out: Unused annual leave must be fully compensated upon resignation

Sick Leave

  • Eligibility: Minimum of 6 months of state health insurance contributions in the preceding year
  • Duration: Up to 183 days per year, extendable to 1.5 years in special cases; may be extended until recovery in cases of tuberculosis

  • Allowance: 55% – 75% of the average monthly salary (based on the previous 6 months)

    • Day 1: Unpaid
    • Days 2 – 6: Paid by the employer
    • From Day 7 onwards: Paid by state health insurance

Maternity Leave

  • Eligibility: Minimum of 6 months of state health insurance contributions in the preceding year
  • Duration: 126 days in total (63 days prenatal and 63 days postnatal), adjustable based on medical recommendation, with a mandatory minimum of 42 postnatal days
  • Allowance: 85% of the average monthly salary (based on the previous 6 months), paid by state health insurance

Other Leave Types

  • Maternity Risk Leave: Paid leave granted where the employer cannot adjust working conditions or hours to eliminate risks; up to 120 consecutive or split days, certified by a family or specialist physician
  • Prenatal Medical Check-up Leave: Up to 16 hours per month for pregnant employees; paid
  • Breastfeeding Leave / Reduced Working Time: At least two 1-hour breaks per day until the child turns 1 year old, or an option to reduce working hours by 2 hours per day; fully paid

  • Childcare Leave (two categories):

    • Standard (until child turns 1) and disabled child (until child turns 3): 85% of average net salary (past 12 months), subject to minimum 1.2 ISR and maximum 6.8 ISR
    • Standard (until child turns 2): 85% of average net salary (past 12 months), subject to minimum 1.2 ISR and maximum 2.4 ISR
    • Note: ISR = Indicator Social de Referință (Reference Social Indicator); 2026 ISR = RON 660
  • Child Sick Care Leave: For children under 7 (ordinary illness) or under 18 (serious illness/disability), subject to at least 6 months of health insurance contributions; paid at 85% of salary by state health insurance
  • Special Family Leave: Paid leave for specific family-related events, as defined by law, collective agreement, or internal company policy
  • Personal Leave: Unpaid leave granted for personal reasons, with duration determined by collective agreement or internal rules

  • Vocational Training Leave:

    • Unpaid: Granted upon employee request (submitted at least 1 month in advance) for self-initiated training
    • Paid: Granted by the employer if training opportunities were not previously provided; up to 10 days

Termination and Compensation

Notice Period

  • Except in cases of probationary dismissal for incompetence, employees dismissed due to medical unfitness, professional incompetence, or redundancy are entitled to a minimum notice period of 15 days.

  • Employees may resign without providing a reason, subject to the following notice periods:

    • Ordinary positions: Up to 15 days
    • Management positions: Up to 30 days
  • No notice period is required where the employer materially breaches contractual obligations.

Compensation

There is no statutory uniform framework for termination compensation. Any compensation payable is determined in accordance with applicable collective agreements or internal company regulations.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Romanian regulations.
  • Contributions and Taxes: Our expertise in managing local social statutory contributions and local income tax ensures your business complies with financial obligations in Romania.
  • Compliance with Working Hours: We guarantee that your employment practices adhere to Romania’s working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with Romania’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in Romania

Unlock your growth potential with BIPO’s Employer of Record service in Romania. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions (FAQ)

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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