Romania Compensation & Benefits
Two critical aspects of any employment contract are compensation and benefits. When you expand operations to a new country, it can be challenging to identify what guaranteed benefits you need to give employees and what supplemental benefits they expect from their employer.
Globalization Partners can help you through the confusion. We are experts in Romanian compensation laws with an established PEO in the country. We will hire employees on your behalf, add them to our compliant payroll, and put them on our benefits plan to make sure you stay covered every step of the way.
Romania Compensation Laws
Romania’s minimum wage rose to around 440 EUR per month in 2019. Employees who work more than eight hours a day or 40 hours a week are also subject to overtime compensation. Employers can either pay employees overtime at 75% above the employee’s base salary or provide additional time off within 30 days of when the overtime work occurred.
Since some industries have collective bargaining agreements (CBAs), the Romania compensation laws you’ll need to follow could change. Make sure you check any applicable CBAs since you will need to adhere to those requirements as a minimum.
Romania celebrates 11 public holidays during which employees get the day off. As part of your Romania benefit management plan, you’ll need to give employees at least 20 days off per year. They are also entitled to additional days off for personal reasons, including five days for marriage and two days for the marriage of an employee’s child.
Another guaranteed benefit is the country’s universal free health care system. However, some services must be paid for up front and then reimbursed. Many employees may try to purchase private health insurance since the public care is not often up to the standards of other countries.
Romania Benefit Management
A strong Romania benefit management plan also includes additional benefits that may not be required by law but can attract candidates to your open positions. In Romania, employers do not typically provide private health insurance, although employees may look for a plan themselves. However, employers commonly offer meal vouchers to employees, which are a tax-free benefit.
Putting together the perfect benefit management solution on your own takes time and money. Alternatively, Globalization Partners can simplify the process. Our Employer of Record platform enables us to hire employees who work on your behalf. We also take on matters of compliance, so you only have to worry about running your company instead of paying employees.
Restrictions for Benefits and Compensation
Any benefits and compensation restrictions typically come from a CBA. Employers should look over any applicable CBAs before drafting an employment contract. Otherwise, you risk outlining the wrong minimum requirements in your contract.
Work With Globalization Partners
Companies expanding to Romania can benefit from Romania compensation and benefit outsourcing services. With Globalization Partners, you can outsource these tricky aspects of employment law while remaining free from compliance issues. Contact us today to learn more about our services.