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Compensation & Benefits in RoRomania.






Country Capital



Romanian leu (RON)

Before expanding to Romania or incorporating a subsidiary, it is vital to understand what benefits are guaranteed to employees and what supplemental coverages you can offer to stay ahead of the competition.

Romania compensation laws

Romania’s minimum wage rose to RON 3,000 per month in January 2023. Romania’s labor code stipulates that an employee can only be paid the minimum wage for 2 years, after which they must receive a raise.

Employees who work more than 8 hours a day or 40 hours a week are also subject to overtime compensation. Employers can either pay overtime at 75% above the employee’s base salary or provide additional time off within 30 days of when the overtime work occurred. Make sure to check if any CBAs apply as the requirements may differ.

Guaranteed benefits in Romania

Romania celebrates 15 public holidays during which employees get the day off. Employees in Romania are also entitled to at least 20 days off per year. They are also granted additional days off for personal reasons, including 5 days for marriage and 2 days for the marriage of an employee’s child.

Another guaranteed benefit is the country’s universal healthcare system. However, some services must be paid for upfront and then reimbursed. Many employees may opt to purchase private health insurance as well.

Romania benefits management

A strong Romania benefits plan should also include supplemental benefits to attract candidates and retain key team members. In Romania, employers commonly offer meal vouchers, which are a tax-free benefit.

Restrictions for benefits and compensation

Any benefits and compensation restrictions typically come from CBAs. Employers should look over any applicable CBAs before drafting an employment contract. Otherwise, you risk outlining the wrong minimum requirements in your contract.

Romania competitive benefits planning

Growing your company in a new country comes with several tasks. You’ll need to learn about a new labor market and how to craft attractive benefits packages. With a strategic approach, you can develop a plan that appeals to locals and also aligns with your budget.

Romania employee benefits plans

Creating a competitive benefits plan can make your business stand out from other companies in the labor market. Applicants tend to show more interest in jobs with robust benefits offerings.

Potential perks include:

  • Supplemental insurance or pensions
  • Holiday bonuses
  • Meal allowances
  • Housing stipends
  • Travel allowances
  • Professional training
  • Flexible working opportunities

Legal obligations for benefits

While your supplemental provisions and perks will make your company competitive, you need to consider your legal obligations first. Employers in Romania must provide:

  • Social security contributions
  • Paid public holidays
  • Paid annual leave
  • Parental leave

Designing Romania employee benefits plans

As you design your benefits plan, you’ll want to balance your company’s available resources with employees’ expectations. While every country has different laws, there are a few basic steps to create a competitive plan anywhere.

1. Understand your company’s revenue and goals.

Benefits costs can add up, so it’s essential to understand your revenue and how much you’re willing to spend. Consider all expenses and create a budget. Keep in mind that you can adjust your budget later as your business grows.

You should also assess your goals at this stage. You may be able to use your benefits plan as a way to achieve them. For example, if you want to build a large team, you can opt for a more conservative benefits package and hire more employees. If you want to improve retention, you might scale back on hiring and recruiting and offer more supplemental benefits.

2. Learn about the market and employee expectations.

To make your company competitive in the labor market, you need to learn about other companies’ benefits. Research businesses in the area with a similar size and industry as yours.

You can also learn about employee needs and expectations by talking to employees directly. Distribute surveys or conduct interviews to hear from employees and learn which benefits they’re most interested in.

3. Use the information you’ve gathered to create a plan.

After you’ve conducted some research, you can create a plan that balances your resources with employees’ needs. Start by allocating funds to the required benefits. Once you’ve met the threshold for compliance, you can choose supplemental provisions to compliment your offering.

Average cost of benefits

Every company offers different benefits at various scales, so an average cost wouldn’t be a fair reflection of what you can expect to spend. Creating a budget for your specific benefits can help set spending expectations and prevent you from going over your allotted funds.

How to calculate benefits

Calculations will vary based on the benefits you offer. In Romania’s labor laws, you can find guidance for calculating required provisions like parental leave and social insurance contributions.

How are employee benefits taxed in Romania?

Benefits in cash and in kind are generally taxable income in the country. However, there are some exceptions. Non-taxable benefits include:

  • Expenses paid for business-related travel
  • Reimbursable loans provided without interest or at a low rate
  • Contributions to a voluntary pension fund up to about RON 1,967 a year
  • Private health insurance paid by employers up to about RON 1,967 a year

Company vehicles are also partially tax-exempt. Vehicle-related expenses are 50% deductible according to corporate tax legislation.

Employee health benefits

The country has a public healthcare system funded by a portion of social insurance contributions. Employers are not required to provide private health insurance schemes for this reason. However, supplemental insurance is available, and some companies offer it as a fringe benefit.

Partner with G-P to build your everywhere workforce.

As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.

Learn more about our platform and request a proposal today.


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.

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