Guide to Hiring in Romania

Romania has one of the fastest-growing economies in the EU and offers a skilled talent pool for global companies. IT and business services are major economic drivers, with a strong base in automotive and electronics. The country’s GDP is around USD 382–422B. 

Before expanding into Romania, you’ll need to understand contracts, taxes, wages, benefits, and other employment laws. Our guide will tell you everything you need to know about hiring in Romania.

What to know before hiring in Romania

If you’re looking to hire in Romania for the first time, there are legal requirements to be aware of. These norms and laws influence hiring practices in Romania and many aspects of the employer-employee relationship, including compensation and benefits. 

G-P Gia™, our AI-powered global HR agent, can answer your toughest compliance questions across 50 countries — including Romania — and all 50 U.S. states. Reduce your reliance on outside counsel and cut the time and cost of compliance by up to 95% with Gia.

Here are five things to know about hiring in Romania.

1. Termination in Romania

Employers in Romania need legally recognized grounds to terminate an employee. A minimum notice period of 20 working days applies, except for cases like:

• Disciplinary dismissal

• Professional incompetence

• Or during the probationary period

Probation periods are limited to 90 days for executive roles and 120 days for managerial positions. Termination during probation needs only a written notification without a notice period or cause. The terms for termination, including notice and probation, have to be clearly stated in the employment contract.

2. Contract structure in Romania

Written contracts in Romanian are mandatory. All employment contracts have to be registered with the employees’ general register before the employee starts work. Open-ended contracts are the default. Fixed-term contracts are allowed in specific cases. The maximum duration for a single fixed-term contract is 36 months. The total period for successive fixed-term contracts with the same employee can’t exceed 36 months. No more than three successive fixed-term contracts are allowed for the same employee.

Probation periods for fixed-term contracts are as follows:  

• 5 days for contracts under three months

• 15 working days for contracts between 3–6 months

• 30 working days for contracts over six months

• 45 working days for managerial positions with contracts over six months

You must give the employee a copy of the contract and keep the original it on file.

3. Employment taxes in Romania

The main employer social security contribution is a unified work insurance contribution (CAM) of 2.25% of gross salary. Much higher rates for social security, health, unemployment, and medical leave are paid by employees (25% for pension and 10% for health insurance). 

Romania, unlike many other European countries, has a disability compensatory fee. Companies with over 50 employees are required by law to ensure that at least 4% of their workforce consists of people with disabilities. If you don’t meet this quota, you have to pay a monthly compensatory fee. 

4. Wages and work schedule in Romania

The minimum wage in Romania is RON 4,050 per month (2025). The workweek is eight hours per day and 40 hours per week. The legal maximum of 48 hours includes overtime. Employees get at least 20 working days of paid annual leave, plus extra leave for family events. Romania has at least 15 holidays.

5. Leave in Romania

Employees get up to 183 days of sick leave. This is paid at 75% of the calculation base for common illness. There are higher rates up to 100% for specific conditions such as:

• Contagious diseases

• Surgical emergencies

• Quarantine

• Cancer

• Tuberculosis

The maximum sick leave can be extended to 18 months for serious illness. The employer pays for the first five calendar days. The state covers the rest. 

Maternity leave is 126 calendar days. It’s compensated at 85% of the average gross income and paid from the national health insurance fund. Paternity leave is 10 working days. It can be extended to 15 days if the father completes a certified childcare course. Paternity leave is paid at 100% of salary. 

Parental leave is available for up to two years (three for a child with disabilities). Parental leave is compensated at 85% of the average net income, subject to caps.

Top hiring hubs in Romania

Some cities in Romania are known for particular industries. Knowing what each region has to offer allows you to focus your hiring efforts in the right place and fill roles faster. 

The top talent hubs in Romania are:

• Bucharest is the capital and largest city of the nation. It has the largest concentration  of professionals in IT, software development, finance, marketing, and BPO/shared services. It also has the most tech companies and startups, including global companies such as Microsoft, IBM, Oracle, and UiPath.

• Cluj-Napoca, the unofficial capital of Transylvania, is Romania's fastest-growing technology hub. It’s called the Silicon Valley of eastern Europe. The city’s tech professionals specialize in software engineering, AI, data science, and R&D.

• Iași is a historic cultural and academic city that has become an IT and BPO hub. The city offers many technical graduates in software development, web development, and IT support.

• Timișoara is located near the borders of Hungary and Serbia. It’s known for its industrial past and engineering sector. The city is a great place to find talent in engineering, manufacturing, automation, and hardware development.

Key industries in Romania

Understanding Romania’s top industries allows you to benchmark salaries and benefits. You can use this insight to make smart choices about where to invest and grow your talent pool. 

The top industries in Romania include:

• IT: Romania has many highly skilled tech graduates. The country is a European leader in areas such as cybersecurity, fintech, and enterprise software. Major tech cities include Cluj-Napoca, Bucharest, and Timișoara. 

• Automotive: The automotive export industry makes Romania a regional leader in car production. The country is home to major manufacturers like Dacia (Renault Group) and Ford, as well as many auto parts and components suppliers.

• Electrical machinery and equipment: Romania is a major exporter of electrical machinery and equipment. This includes insulated wire, electrical control boards, and various electrical and electronic components.

• Construction: The construction sector is focused on modernizing transport, expanding commercial real estate, and building new homes in urban areas.

• Agriculture: Romania has large areas of fertile land and is a major producer of cereals (like corn and wheat), oil seeds, and wine. The country is focused on modernizing agribusiness and increasing EU investment.

The cost of hiring an employee in Romania

Whether you’re hiring one employee or an entire team in Romania, expenses are inevitable. Budget for the following:

• Setting up an entity (unless you partner with an employer of record)

• Advertising job positions

• Paying referral bonuses to employees with connections in Romania

• Paying an in-house hiring committee

• Traveling to and from Romania, including hotel stays, meals, and transportation

• Partnering with a translator to draft documents or facilitate conversations (if applicable)

• Using a background check service for screening candidates

• Drafting compliant employment contracts, legal review, and consultation with HR and legal experts

• Costs for providing computers, phones, and software licenses

• Onboarding materials and initial training

• Costs for maintaining required tax and payroll records and documentation

According to G-P Verified Sources from Gia, the employer burden rate in Romania, which includes costs triggered on top of salaries, is about 2.5%, excluding accident insurance that can vary. 

What does a company need to hire employees in Romania?

Make sure you cover these essentials before expanding your team in Romania:

• Register a local company or branch with the Romanian trade register.

• Get a unique registration code (CUI).

• Get a trade license.

• Open a local bank account.

• Register with the national agency for fiscal administration (ANAF) and the territorial labor inspectorate (ITM).

• Enroll employees in the general register of employees before they start work.

• Make sure payroll systems are compliant and ready to process salaries and contributions.

• Arrange health and safety training and medical checks as required by law.

Setting up a subsidiary in Romania can take weeks or months. Use G-P EOR to hire full-time employees in Romania without setting up your own entity. Build your team at a lower cost and with peace of mind that you’re doing so compliantly.

The steps to hiring employees in Romania

The hiring process in Romania is similar to the one you’re likely familiar with in your own country. The hiring process follows five basic steps: advertising the job, evaluating applications, interviewing candidates, sending job offers, and onboarding new employees.

1. Advertising job vacancies in Romania

Publish the vacancy on job boards, company websites, or through recruitment agencies. Make sure the ad is nondiscriminatory and complies with local laws. 

BestJobs, eJobs, Hipo, LinkedIn, and Jooble are popular job sites in Romania.

2. Evaluating job applications in Romania

Review submitted CVs and cover letters. Shortlist candidates based on qualifications and experience.

3. Interviewing candidates in Romania

Conduct interviews (in-person or virtual) to assess skills, experience, and cultural fit. Gia can help you create questions that follow anti-discrimination laws in Romania, so you can find the best fit for the role while complying with local regulations.

4. Making job offers in Romania

Prepare a written employment contract in Romanian. Include all terms and have it signed by both parties.

5. Onboarding new employees in Romania

Now you can onboard new employees. Register the employment contract with the general register of employees before the employee’s first day of work. Arrange any required pre-employment medical checks. Provide health and safety training. Set up payroll and contributions.

If you’re working with an EOR like G-P, you won’t have to worry about the administrative burden of onboarding. We’ll streamline the process, so you can focus on training your new hire and integrating them into your company culture. 

Hiring contractors in Romania

Working with independent contractors in Romania can be a cost-effective way to test the market and build a presence without the commitment of full-time employees. Contractors based in Romania understand local consumer behavior, rules, and business practices. They’ll be ready to start working quickly with their own equipment and established work processes. 

Hiring contractors allows you to easily adjust your talent pool based on your business needs, without the complexities and costs of employment. 

Before you enter an agreement with an independent contractor in Romania, consider the following:

1. Employees vs. independent contractors in Romania

It’s important to understand the difference between employees and independent contractors. Romanian law uses a specific set of criteria (the seven criteria test in the fiscal code) to determine independent contractor status. To be classified as an independent contractor, at least four of the following must apply: 

• Freedom to choose work location, manner, and schedule 

• Ability to work for multiple clients  

• Assumption of business risk  

• Use of own equipment and resources  

• Use of own skills and expertise  

• Membership in a professional body (if applicable)  

• Freedom to subcontract or collaborate with others

The working relationship must reflect these criteria in practice, not just in the contract.

2. Penalties for misclassification in Romania

Classifying someone as a contractor when they’re not can lead to severe penalties. If misclassification occurs, you’ll have to face:

• Fines ranging from RON 10,000–20,000 per misclassified individual 

• Liability for unpaid taxes and social security contributions

• Potential criminal charges in cases of repeated or intentional violations

3. How to pay contractors in Romania

G-P Contractor™ takes away the messy, time-consuming process of hiring and paying international contractors. You can create and issue contracts and pay contractors with just a few clicks, all while ensuring a compliant process.

Hire employees and contractors in Romania with G-P

Our SaaS and AI-powered products – EOR, Contractor, and Gia – support companies as they build and manage global teams. 

G-P is the recognized leader in global employment with more than a decade of experience, the largest team of HR, legal, and compliance experts, and a global proprietary knowledge base.

Make your expansion to Romania easier with G-P. Contact us or book a demo today.

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