PEO & Employer of Record (EOR) in RoRomania.






Country Capital



Romanian leu (RON)

G-P provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Romania. Your candidate is hired via G-P’ Romania PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.

Our comprehensive solution and Global PEO service enable customers to run payroll in Romania while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Romania.

Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.

Hiring in Romania

Located in Southeastern Europe on the Black Sea, Romania is separated from Bulgaria by the storied Danube River. The country has a population of 20 million and its capital city of Bucharest is the 6th largest city in the EU.

When negotiating the terms of an employment contract and offer letter with an employee in Romania, it may be useful to keep the following standard benefits in Romania in mind:

Employment Contracts in Romania

Individual employment contracts should be registered with the Employees’ General Register.

The individual fixed-term employment contract can only be concluded in writing, with the express specification of the duration for which it is concluded. Between the same parties, no more than 3 individual fixed-term employment contracts can be concluded successively. The individual fixed-term employment contract cannot be concluded for a period longer than 36 months.

It is legally required to put a strong, written employment contract in place in Romania, in the local language, which spells out the start date of employment; location of employment; and terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Romania should always state the salary and any compensation amounts in Romanian new leu rather than a foreign currency.

Working Hours in Romania

The standard work week in Romania consists of up to 8 hours per day, 40 hours per week. Overtime is compensated by paid time off within the next 90 calendar days after it is performed. If compensation through paid time off is not possible within the 90 calendar days, the additional work will be paid to the employee in the following month by adding an increase to the salary corresponding to its duration. The increase for additional work cannot be less than 75% of the basic salary.

Holidays in Romania

Romania celebrates the following public holidays for which employees are given the day off:

  • January 1st and 2nd
  • January 24th – Day of the Union of the Romanian Principalities
  • Good Friday – The last Friday before Easter the first and second days of Easter
  • 1st May
  • June 1st
  • The first and second days of Pentecost
  • Assumption of the Virgin Mary
  • November 30 – Saint Andrew the Apostle, the First-Called, the Protector of Romania
  • December 1st
  • The first and second days of Christmas
  • Two days for each of the 3 annual religious holidays, declared as such by legal religious cults, other than the Christian ones, for the people belonging to them

Vacation Days in Romania

The minimum duration of annual leave is 20 working days. The effective duration of annual leave is established in the individual employment contract, in compliance with the law and the applicable collective employment agreements.

According to the provisions of the Labor Code, in case of special family events, such as for instance in case of the employee’s wedding, in case of the marriage of the employee’s child, or in case of a funeral, employees have the right to paid days off, which are not included in the duration of the vacation. The law does not impose a number of additional leave days, this number can be established by the employer through the company’s internal regulations or through the applicable collective labor agreement.

Romania Sick Leave

In accordance with the local law, allowances for temporary work incapacity are borne: by the employer, from the 1st day to the 5th day of sickness; from National Health Social Insurance starting with the 6th day of sickness until the date of its termination or the employee’s retirement. The duration of granting the indemnity for temporary work incapacity caused by common illnesses or accidents outside of work is a maximum of 183 days within a year, counted from the first day of illness.

Maternity/Paternity Leave in Romania

Female employees are entitled to 126 days of fully paid maternity leave. This leave may be granted both before and after birth. However, at least 42 days of maternity leave must be taken after giving birth. Male employees are entitled to ten days’ leave within eight weeks of the birth of the child. If the father goes through the “Childcare Course” organized by the authorities and obtains the certification, the employer will then grant him 10 additional days of paternity leave on top of the ones provided by law, only once.

Health Insurance in Romania

Romania offers universal free healthcare, but often services need to be paid for up front and then reimbursed. Additionally, the quality of care in government facilities is not generally up to western standards, so employees may wish to purchase private health insurance.

Romania Supplementary Benefits

Supplemental benefits, such as meal vouchers, gym memberships etc., are not required by law.


The 13th month bonus in Romania is considered a gratuity and is not required by local law. Most employers offer performance based bonuses.

Termination/Severance in Romania

The employer can set a probationary period in a permanent employment contract of up to 90 calendar days for non-management positions or up to 120 calendar days for management positions. Probationary periods for definite term contracts may be agreed upon as long as they do not surpass the limit of 5 working days for a contract less than 3 months; 15 working days for a contract of 3-6 months; 30 working days for a contract longer than 6 months for employees non occupying a management position and 45 working days for a contract longer than 6 months for employees occupying a management position.

In the event of termination, employers must provide a notice period of at least 20 working days for employees occupying a non-directorship position and 45 working days for managers/directors.

Employees not occupying a managerial position must provide in case of resignation 20 days of the notice period; employees occupying a managerial position must provide 45 days of the notice period.

There is no legal obligation to make severance payments in Romania.

Paying Taxes in Romania

Contributions on salaries are cumulated at 47.25%. Employers contribute 2.25% to work insurance. Employees contribute 25% of their salary to the state social security fund, 10% to health insurance, and 10% tax on income from wages. This information is provided as general accepted information and is not intended as advisory services.

Why G-P

Establishing a branch office or subsidiary in Romania to engage a small team is time-consuming, expensive and complex. Romanian labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. G-P makes it painless and easy to expand into Romania. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Romania PEO and Global Employer of Record solution provides you peace of mind so that you can focus on running your company.

If you would like to discuss how G-P can provide a seamless employee leasing or PEO solution for hiring employees in Romania, please contact us.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

Expand in

Book a demo
Share This Guide