Employer of Record in Romania

Brain Source International helps you save time and reduce costs by allowing you to hire in Romania without establishing an entity. Our Employer of Record (EOR) solution handles onboarding, payroll, immigration, and benefits so you can hire your employees faster and grow your business compliantly.

What is an Employer of Record in Romania?

An Employer of Record (EOR) in Romania is a strategic partner that acts as the legal employer for your employees residing in Romania. The EOR takes on all employment responsibilities and liabilities on your behalf, handling payroll, benefits, taxes, and regulatory compliance.

By partnering with an EOR, you can hire employees in Romania without the need to establish a local entity or navigate complex labor laws.

Employer of Record (EOR) in Romania: Key Aspects of the Romanian Labour Code

General Information

• Capital: Bucharest
• Currency: Romanian Leu (RON)
• Fiscal Year: 1 January – 31 December
• Payroll Frequency: Monthly

Minimum Wage

General: The minimum statutory gross wage is  3,300 RON

Payroll

Payroll Cycle: In Romania, payroll is processed on a monthly basis. Salaries for work performed between the first and last day of the month are typically paid on the last working day of the month.

13th Salary

In Romania, there is no statutory requirement for a 13th salary payment.

Taxation

Would you like to know the approximate cost of employment in Romania?

Working Hours

General: According to Romanian law, the standard workweek is limited to a maximum of five eight-hour days and a total of 48 hours per week. Part-time workers must work at least ten hours per week, with a minimum of two hours per day. Employees under 18 are restricted to working no more than six hours per day or 30 hours per week.

Employers are required to maintain records of daily work hours for each employee, including start and end times. These records must be made available to labor inspectors upon request.

Overtime: In Romania, employees can work a maximum of 48 hours per week, including overtime. After working a 12-hour day, employers must provide a 24-hour rest period. Any work performed beyond the standard eight hours per day or 40 hours per week must be compensated with paid time off within 60 calendar days of the overtime. If providing time off is not feasible, the overtime must be compensated with an additional payment of at least 75% of the basic wage, prorated to the amount of overtime worked.

Workers under 18 years of age, part-time employees, and pregnant employees who are unable to work regular hours for health reasons are not permitted to work overtime.

Leave

Annual Leave (Vacation):

In Romania, employees are entitled to up to 20 days of paid annual leave per year, prorated based on the period worked. Employers are required to pay the leave allowance at least five working days before the leave starts.

If an employee is unable to take all or part of their annual leave within the calendar year, the employer must carry over the unused leave to the first six months of the following year. If the employee still cannot take the leave within this period (e.g., due to long-term sickness), the employer must grant the unused leave within 18 months, starting from the end of the year in which the leave was accrued, with the employee’s consent.

Public Holidays

Public holidays that fall on the weekend are usually lost.

Sick Leave

Under the labor code in Romania, employees who are covered by the pension and social insurance system and have made the required contributions are entitled to sick leave of up to 180 days within a year, with a possible extension of an additional 90 days.

For the first five calendar days of sick leave, employers provide compensation only for working days. From the 6th calendar day onward, the Unique National Fund of Health Insurances (FUNASS) covers the payment of sick leave.

Sick pay ranges from 75% to 100% of the average monthly income over the previous six months, depending on the type of illness. Employees must provide a medical certificate from a doctor to qualify for sick leave compensation.

Maternity Leave

In Romania, a pregnant employee is entitled to 126 days of paid maternity leave, divided into two periods: 63 days of prenatal leave before the expected due date and 63 days of postnatal leave after the birth of the child. The specific distribution of these days is determined by the employee’s physician and documented in the official medical certificate of maternity.

Maternity pay is provided by the Unique National Fund of Health Insurances (FUNASS) at a rate of 85% of the average monthly gross wages over the six months preceding the maternity leave.

Additionally, employees may take maternal risk leave to protect their own health and the health of their child. This benefit is fully funded by FUNASS and is set at 75% of the average gross earnings over the last six months. Maternal risk leave is supplementary to maternity leave. To qualify, the employee must submit a request to the employer and provide a medical certificate from a doctor.

Paternity Leave

In Romania, the father or partner who actively participates in the care of a child is entitled to 10 days of paid paternity leave, regardless of whether the child is born within marriage, out of wedlock, or adopted. This leave extends to 15 days if the employee participates in an infant care course. The paternity leave must be taken within the first eight weeks after the child’s birth and requires a written request to the employer. The employee must also provide the child’s birth certificate.

Paternity leave allowance is paid from the employer’s salary fund and is considered taxable income for the employee.

In the event of the mother’s death during childbirth or maternity leave, the father is entitled to:

a) An allowance equal to the maternity allowance that would have been due to the deceased mother if the father does not meet the insurance period requirements for medical leave.

b) A maternity-related allowance based on the father’s income if he fulfills the insurance period requirements for medical leave.

This allowance is paid from the employer’s salary fund.

Parental Leave

Following maternity leave, one of the parents is eligible for up to two months of childcare leave (parental leave) until the child reaches two years of age, or three years of age in the case of a disabled child, provided that the employee has made contributions to social insurance during the past year of employment.

The employee is entitled to a monthly allowance from the relevant Romanian authorities, which amounts to 85% of the average regular salary received in the 12 months preceding childbirth. To receive this allowance, the employee must submit a written request, the child’s birth certificate, and a declaration stating that the other parent is not on maternity leave.

For children born as twins, triplets, or multiples, the monthly allowance is increased by 50% starting from the second child.

Other Leave

Depending on the terms of the collective agreement or employment contract, employees may be entitled to additional types of leave, subject to mutual approval between the employer and employee.

Employees are entitled to up to three days of paid bereavement leave in the event of the death of a direct family member. For this leave, employees must provide a death certificate and a written request to the employer.

Employees are also entitled to five days of paid wedding leave for their own wedding and two days of paid leave for the wedding of their child. To take this leave, employees must request approval from the employer and provide a wedding certificate after the event.

When expanding into Romania, partnering with an Employer of Record (EOR) service like Brain Source International can facilitate a smooth entry into the Romanian market by managing local employment and compliance requirements.

Benefits of Using Brain Source International as Your EOR in Romania:

1. Regulatory Compliance: Romania has specific labor laws and regulations. Brain Source International ensures adherence to all local requirements, including employment contracts, payroll, taxation, and employee benefits.
2. Efficient Hiring: Brain Source International handles the entire hiring process, from recruitment and onboarding to managing employment contracts, which helps you quickly integrate new employees into your organization.
3. Payroll Management: Managing payroll in Romania involves navigating complex tax and social security systems. Brain Source International takes care of all payroll functions, ensuring accurate and timely salary payments and compliance with local regulations.
4. Risk Mitigation: Compliance with Romanian employment laws can be challenging. Brain Source International helps mitigate legal and compliance risks by handling all HR-related legal obligations on your behalf.
5. Cost Savings: Setting up a legal entity in Romania can be expensive and time-consuming. Using Brain Source International allows you to avoid these costs while maintaining effective operations in the Romanian market.
6. Focus on Core Business: By outsourcing HR and administrative tasks to Brain Source International, you can focus on your core business activities and strategic goals without getting bogged down by local employment issues.

Using Brain Source International as your EOR in Romania provides a strategic advantage, allowing you to navigate the local employment landscape efficiently while concentrating on growing your business.

Seamlessly recruit, employ and pay your global workforce in Romania and around the world

Unlock the full potential of your global HR infrastructure with Brain Source International’s uniquely integrated Recruitment and Employer of Record (EOR) solutions. Bypass time-consuming complexity of managing multiple vendors across continents. Skip time-consuming and often costly own company formation and transform what was once a complex, risky process into a streamlined, high-impact pathway to global success – with our help!
Our integrated solution saves you time enabling you to access the best global talent and protects you from any risks associated with international employment.
Expand efficiently and focus entirely on core business growth – by signing a single service agreement with BSI Employer of Record company. Our team will be your single partner for all your global talent needs! Our comprehensive Global Recruitment and Employer of Record solutions ensure 100% compliance across over 150 countries, with us handling monthly payroll, payslips, tax filing, employee benefits provision and adhering to all in-country labor regulations on your (the Client’s behalf).

FAQs for Employer of Record in Romania