Employee benefitsin Romania

Employees in Romania are covered by the national social health insurance system, which gives access to publicly funded medical care through doctors, clinics and hospitals contracted with the National Health Insurance House, the public body that funds care. Cover is financed by the social health insurance contribution (CASS), 10% of gross salary withheld from the employee's pay; the employer pays no separate health contribution.

Children are covered without paying a contribution. Since August 2025 several groups that used to be co-insured or exempt, such as spouses and dependent parents without their own income, generally owe their own contribution. Self-employed people pay CASS of 10% on their annual net income through their annual tax return, so public health cover also extends to independent contractors who contribute.

Employees undergoing in-vitro fertilisation (IVF) are entitled every year to 3 days of additional paid annual leave: one day on the date of the egg retrieval and two days starting on the date of the embryo transfer. The request must be accompanied by a medical letter from the specialist doctor. The days are in addition to the standard 20 working days of annual leave and are paid by the employer like holiday pay.

An employee can only be hired on the basis of a medical certificate confirming fitness for the job, issued after an occupational medicine examination; a contract signed without it is void. Foreign employees may present the certificate by their first day of work. Pregnancy tests at hiring are prohibited, and specific medical tests can be required only in fields such as health, food service and education.

Employers must then arrange periodic occupational health checks, usually once a year and more often in food and other high-risk activities, and provide workplace safety induction and periodic training through an internal or external health and safety service, including for teleworkers. These checks and training are paid by the employer. Employees with disabilities are entitled to reasonable accommodation.

Many Romanian employers give staff a private medical subscription with one of the large private clinic networks, or a voluntary health insurance policy, on top of the public health system. A subscription typically gives the employee free or discounted consultations with general practitioners and specialists, laboratory tests, imaging and an annual health check at the provider's clinics; health insurance policies add reimbursement of treatment and hospital costs up to annual limits. Higher packages often extend cover to spouses and children at the employer's or employee's cost.

Employer spending is commonly about RON 1,500 to RON 3,000 a year per employee for professional roles. Employer-paid premiums and subscriptions are free of income tax and contributions up to EUR 400 per employee per year within the 33% tax-free benefits limit; any excess is taxed as salary.

In a 2022–2023 survey, 60% of 114 employers offered voluntary health insurance or medical subscriptions, and 63.3% of employees in a 2025 job-board survey reported receiving a medical subscription.

Wellbeing programmes are widespread among larger office-based employers: two thirds of 101 companies in Romania's main office hubs ran wellbeing programmes in 2026. Sport and gym subscriptions are less common, offered by about two in ten employers in a 2022–2023 survey, and typically provided through multi-gym passes. Other perks include office snacks, team events and wellness days.

Employer-paid sport subscriptions are tax-free up to EUR 100 per employee per year within the 33% tax-free benefits limit, if bought from sports facility operators.

Some Romanian employers offer counselling or coaching sessions, an employee assistance programme (EAP), a confidential service giving staff short-term counselling and advice, or access to a digital therapy platform. Such support is usually bought as part of a wellbeing package or added to a group health policy.

Employer interest is growing: in a late-2024 survey of 204 business leaders, 31% said they would offer psychological support and 38% coaching or mentoring. That measures intentions, not current provision. Employer-paid therapy outside a health insurance policy can be a taxable benefit.

Employees are insured against work accidents and occupational diseases under Law 346/2002. The scheme pays a sickness indemnity during temporary incapacity caused by a work accident or occupational disease, generally 80% of average gross earnings and 100% in urgent medical-surgical cases, as well as rehabilitation, temporary job transfer or reduced-hours compensation, disability pensions, compensation for loss of bodily integrity and death benefits for survivors.

The employer funds the scheme through the employment insurance contribution (CAM), a single 2.25% employer charge on gross salary that also finances sick pay, unemployment and the wage guarantee fund. No minimum contribution period is required for work-accident indemnities.

Employees in Romania pay almost all mandatory social contributions themselves. The employer withholds the social insurance contribution (CAS), 25% of gross salary, which funds the public pension system, and the social health insurance contribution (CASS), 10% of gross salary. Neither contribution is capped for employment income, so together they take 35% of gross pay before income tax.

For employees enrolled in the second pillar, the mandatory privately managed pension system, 4.75 percentage points of the 25% CAS are redirected to their individual fund account. Income tax of 10% is then charged on gross pay after CAS, CASS and any personal deduction. The employer's own charge is the 2.25% employment insurance contribution (CAM), plus extra pension contributions only for work in difficult or special conditions.

The public pension system, run by the National House of Public Pensions, pays an old-age pension once a person reaches the standard retirement age and has at least 15 years of contributions; a full contribution period is 35 years. Under Law 360/2023 the standard age is 65 for men. For women it is rising gradually: 62 years and 7 months for those reaching entitlement from July 2026, increasing until it equals 65 in 2035.

The same system pays invalidity pensions when illness or injury permanently reduces a person's capacity to work, and survivors' pensions. It is funded by the 25% social insurance contribution (CAS) on salaries. Self-employed people must contribute once their annual net income reaches 12 gross minimum wages and can opt in below that level, so contractors build public pension rights only through their own contributions.

Romania's second pillar is a mandatory privately managed pension. Employees who join the labour market before age 35 are enrolled automatically, and those aged 35 to 45 may opt in. Each member chooses a licensed pension fund or is allocated one at random.

The second pillar is not an extra cost for employer or employee: 4.75 percentage points of the employee's 25% social insurance contribution (CAS) are transferred to the member's individual account, and the rest funds the public pension. A bill to raise the share to 5.25% and then 6% passed the Senate in February 2026 but had not been enacted by October 2026. Members can also make additional voluntary contributions.

Employees who lose their job for reasons not attributable to them can claim an unemployment indemnity from the county employment agency if they paid unemployment insurance for at least 12 months in the 24 months before applying, have no income or income below the social reference indicator, do not qualify for a pension and register as job seekers. Resignation, dismissal for misconduct and termination by mutual agreement do not qualify.

The benefit is paid for 6 months after at least one year of contributions, 9 months after at least five years and 12 months after more than ten years. The monthly amount equals the social reference indicator, RON 660 in 2026, plus 3%, 5%, 7% or 10% of average insured earnings for at least 3, 5, 10 or 20 years of contributions. Since August 2025 the health contribution of 10% is withheld from the benefit. The scheme is funded through the employer's 2.25% employment insurance contribution.

Romanian law does not require severance pay when an employee is dismissed, whether for redundancy, poor performance or misconduct. Employees dismissed for reasons unrelated to them benefit from active labour-market measures and may receive compensation only where the applicable collective agreement or their employment contract provides it. The same applies to dismissal for medical unfitness: the employee is entitled to compensation on the terms set by the collective agreement or employment contract.

On any termination the employer must pay outstanding salary and cash compensation for unused annual leave. Any severance is therefore contractual, and agreements in some sectors, such as banking, set redundancy payments linked to length of service.

Group life insurance, often combined with accident and disability cover, is offered by a substantial minority of Romanian employers. In a 2022–2023 survey of 114 employers, nearly 40% offered life and/or professional insurance. The sum insured is usually linked to job level and salary, for example a multiple of annual salary. Employer-paid life insurance premiums are taxable salary for the employee, since the tax-free limit applies only to voluntary health insurance and pensions.

Some employers contribute to a voluntary private pension (the third pillar) for their staff, sometimes matching employee contributions. Contributions go to a licensed voluntary pension fund in the employee's name and remain the employee's savings if they change jobs.

Employer contributions are free of income tax and contributions up to EUR 400 per employee per year within the 33% tax-free benefits limit, and employees can also deduct up to EUR 400 a year of their own contributions. In a 2022–2023 survey of 114 employers, about a third (32%) offered third-pillar pension contributions; reported examples of employer contributions are about 3% of salary. The voluntary system had 999,352 participants at the end of 2025, with an average monthly contribution of about RON 181.

Every employee, full-time or part-time, is entitled to at least 20 working days of paid annual leave a year, accrued in proportion to time worked. Public holidays and paid days off granted under a collective agreement are not counted in this total, and sick leave, maternity, paternity and carer's leave count as time worked for accrual. Employees working in difficult, dangerous or harmful conditions, blind or other disabled employees and workers under 18 get at least 3 extra working days.

Leave is planned by the end of each year for the next. If it is split, each employee must take at least 10 consecutive working days in the year. Holiday pay is at least the daily average of base salary, permanent allowances and supplements over the previous three months, and must be paid at least 5 working days before the leave starts.

Leave must be taken each year. If an employee cannot take it for justified reasons, the employer must grant it, with the employee's agreement, within 18 months from the start of the following year. Cash in lieu is allowed only when employment ends; under a 2026 High Court ruling, leave older than 18 months must still be paid out on termination if the employer never gave a real opportunity to take it.

Employees who are unable to work because of illness or an accident outside work receive a sickness indemnity based on a medical certificate. To qualify they need at least 6 months of health insurance contributions in the 12 months before the month of the leave; no qualifying period applies to urgent medical-surgical cases, tuberculosis, cancer, AIDS (acquired immunodeficiency syndrome), certain infectious diseases and work accidents.

Since 1 August 2025 the indemnity for ordinary illness depends on the length of each illness episode: 55% of the calculation base for up to 7 days, 65% for 8 to 14 days and 75% for longer episodes. Certain cardiovascular diseases are paid at 75% regardless of length, and tuberculosis, AIDS, cancer, group A infectious diseases and urgent medical-surgical cases at 100%. The calculation base is average gross monthly earnings over the last 6 of the 12 contribution months, capped at 12 gross minimum wages, and only working days within the certified calendar days are paid.

Sick pay lasts up to 183 days in a year, counted from the first day of illness, with possible extensions of up to 90 days to support recovery. The employer pays the first days and the National Single Health Insurance Fund pays the rest; the employer recovers its outlay above its own share. For certificates issued from February 2026 to December 2027, temporary rules make the first day unpaid and shift the employer's share to days 2 to 6.

For medical certificates issued between 1 February 2026 and 31 December 2027, the sickness indemnity is reduced by one day, so the first day of a sick-leave episode is unpaid. A continuous episode of the same illness or its complications loses only one day, however many certificates are issued.

During this period the employer pays days 2 to 6 and the National Single Health Insurance Fund pays from day 7; where the fund pays the whole indemnity, it pays from day 2. The unpaid day still counts as insured time. The reduction does not apply to maternity leave, care of a patient with cancer, maternal risk leave, patients in national health programmes or patients receiving hospital care. The rule was introduced by Government Emergency Ordinance 91/2025 and approved with changes by Law 64/2026 in May 2026.

Employees are entitled to 5 working days of paid carer's leave a year to provide care or personal support to a child, parent or spouse, or to someone living in the same household, who needs it because of a serious medical problem. It is granted on written request, does not reduce annual leave, counts towards seniority and keeps the employee insured. Collective agreements or special laws can grant more.

Separately, employees may be absent for unforeseen family emergencies caused by illness or accident that require their immediate presence, for up to 10 working days a year. They must inform the employer beforehand, and the hours are made up later as agreed with the employer, so this absence is not additional paid leave. The employer cannot dismiss an employee during carer's leave or an emergency absence.

Insured parents can take paid leave to care for a sick child under 12, or a disabled child under 18 with an intercurrent illness, and for a child under 18 with a serious condition. The leave is granted on a medical certificate to one parent, who must meet the 6-months-in-12 health insurance condition. The standard limit is 45 calendar days a year per child, with no fixed limit for infectious diseases, immobilisation or surgery.

The allowance is 85% of the calculation base, average gross monthly earnings over the last 6 of 12 months, capped at 12 gross minimum wages. It is paid by the employer and reimbursed by the National Single Health Insurance Fund, and it is not subject to income tax. The employer cannot dismiss an employee while on this leave.

Employees have a legal right to paid days off for special family events, such as their own marriage, a birth or the death of a close relative, and these days do not reduce annual leave. However, the Labour Code does not fix the events or the number of days for private-sector employers: they are set by the applicable collective agreement or, failing that, by the employer's internal regulations, which must include them.

Typical provisions follow the former national collective agreement: 5 days for the employee's own marriage, 2 days for a child's marriage, 3 days for the death of a spouse, child, parent or parent-in-law and 1 day for the death of a grandparent or sibling. Public-sector staff receive 5 days for marriage and 3 days for a birth, a child's marriage or the death of a close relative under government rules.

Employees have a right to unpaid leave to deal with personal matters. The Labour Code does not set its length: the applicable collective agreement or the employer's internal regulations determine how much unpaid leave can be taken and on what terms. During unpaid leave the employee receives no salary, and the period is deducted from length of service.

Unpaid leave for professional training, which employees can request for courses outside the employer's own programme, follows separate rules and is not deducted from seniority.

Many employers grant more than the statutory 20 working days of annual leave, either as a flat package of 21 to 25 days or as extra days that increase with length of service under a collective agreement or internal rules. In a 2022 job-board survey, 41.4% of employers offered extra days off, and in the 2025 edition 51% of employees reported receiving extra days off or remote work, measured together.

Extra contractual leave is paid at the same holiday pay rate as statutory leave and follows the same carry-over and payout rules unless the contract says otherwise.

Some employers, particularly in technology and services, add single extra paid days such as a day off on the employee's birthday, volunteering days or company-wide days off, alongside annual leave. These are set by internal policy, are usually one or two days a year each, and are paid at normal salary.

Pregnant employees, those who have recently given birth and breastfeeding employees whose job poses a risk to their health or safety, and who cannot be moved to safer work, are entitled to maternal risk leave of up to 120 days under the maternity protection rules. The leave can be taken in full or in parts on the recommendation of a doctor.

The maternal risk allowance is 75% of the calculation base, average gross monthly earnings over the last 6 of 12 months, capped at 12 gross minimum wages. It is paid entirely by the National Single Health Insurance Fund and requires no minimum contribution period. It is separate from, and in addition to, the 126 days of maternity leave.

Insured mothers are entitled to 126 calendar days of pregnancy and postnatal leave: normally 63 days before and 63 days after the birth. The two parts can be rebalanced on medical advice, but at least 42 days after the birth are compulsory. Disabled insured women can start pregnancy leave from the sixth month of pregnancy. If the child is stillborn or dies during the postnatal leave, the allowance continues for the full period.

The maternity allowance is 85% of the calculation base: average gross monthly earnings over the last 6 of the 12 months of the insurance record, capped at 12 gross minimum wages. It is funded entirely by the National Single Health Insurance Fund and is not subject to income tax. The mother needs at least 6 months of health insurance contributions in the previous 12 months; women who lose insured status through no fault of their own keep the right if they give birth within 9 months.

Fathers are entitled to 10 working days of paid paternity leave after the birth of their child, taken within the first 8 weeks, on written request with the birth certificate. A father who has completed a childcare course (curs de puericultură) gets 5 more working days, 15 in total. The right does not depend on length of service.

Paternity leave is paid by the employer from its salary budget at the father's full pay, with no reimbursement from the state, and it counts as time worked for annual leave. The employer cannot dismiss an employee while on paternity leave.

Either parent can take child-raising leave until the child turns 2, or 3 for a disabled child, while the employment contract is suspended and the employer cannot dismiss them. To qualify, the parent must have had taxable income from salary, self-employment or similar sources for at least 12 months in the 2 years before the birth. At least two months of the leave are reserved for the other parent and are lost if not taken.

The state pays a monthly allowance of 85% of the parent's average net income over the 12 qualifying months, with a minimum of 2.5 times the social reference indicator (about RON 1,650 a month in 2026) and a maximum of RON 8,500. Since August 2025 the 10% health contribution is withheld from it. The allowance is paid by the territorial social payments agency, not the employer.

Parents who return to work before the child turns 6 months (1 year if disabled) receive an insertion incentive of RON 1,500 a month until age 2, and RON 650 a month in other cases until age 3; the incentive replaces the allowance. Adoptive parents, guardians and foster parents have the same rights.

Employers can support working parents with nursery vouchers (tichete de creșă), worth RON 770 a month from October 2026, for employees who are not on child-raising leave, or by paying for a child's place in a nursery or kindergarten. Direct payments for early-education places are free of income tax and contributions up to RON 1,500 a month per child, granted to one parent at one employer, within the 33% tax-free benefits limit. Nursery vouchers are taxed like meal vouchers, with 10% income tax and 10% health contribution.

Some expatriate packages also include international school fees, which are taxed as salary.

Romania has no statutory 13th-month salary or other mandatory bonus for private-sector employees. The Labour Code requires salary to be paid in money at least once a month and leaves bonuses, holiday payments and profit sharing to the employment contract, internal rules or collective agreements.

Where an employer promises a 13th salary or a fixed annual bonus in the contract or a collective agreement, it becomes enforceable on those terms and is taxed as ordinary salary income, with the employee's social contributions and income tax applying.

Cash bonuses paid at Easter and Christmas (prime de sărbători) are one of the most common extras in Romania: 71.4% of employees in a 2025 job-board survey reported receiving them, and 68.6% of employers offered them in the same survey's 2022 employer edition. Many employers also pay an annual or performance bonus at year-end, with the amount set by company results and individual performance; a full 13th salary is less common and was cited by employers as a benefit that would set them apart.

Bonuses are taxed as salary, so the employee pays 25% social insurance, 10% health contribution and 10% income tax, and the employer pays its 2.25% employment insurance contribution. Gifts and gift vouchers at Easter and Christmas are tax-free only up to RON 300 per person per occasion.

Romanian employers widely give employees gifts or gift vouchers (tichete cadou) for Easter and Christmas, and often for 8 March (International Women's Day) to female staff and for 1 June (Children's Day) for employees' children. In a 2022–2023 survey of 114 employers, more than 85% gave gift vouchers or cash or in-kind gifts for special occasions.

The tax rules shape the amount: gifts and gift vouchers are free of income tax and social contributions up to RON 300 per person per occasion, for the employee and for each minor child, so employers commonly give RON 300 or less per occasion. Amounts above RON 300 are taxed as salary.

Share-based incentives are offered mainly by multinational groups, which extend global plans to their Romanian subsidiaries, and by a growing number of local companies, including listed technology groups and startups that use them to attract and retain staff. Some plans cover all employees rather than only managers.

Romania has a favourable tax regime for stock option plans. A plan qualifies if at least one year passes between the grant of the right and its exercise; the benefit is then not taxed as salary at grant or exercise. When the shares are sold, the gain is taxed as investment income at 16% from 2026, or withheld at 3% (held over a year) or 6% through a Romanian broker, with the health contribution due depending on the level of gains. Reported typical option grants for individual startup employees range from 0.01% to 0.1% of equity.

Phantom share plans give employees a cash payment linked to the value of the company's shares, or to its growth, without transferring any shares or ownership rights. Because no shares are acquired, these awards do not qualify for the favourable tax treatment of stock option plans: the payment is treated as salary income when made, so the employee pays 25% social insurance, 10% health contribution and 10% income tax, and the employer pays the 2.25% employment insurance contribution.

Employers set the reference value, vesting schedule and payout events in the plan rules, typically paying on a sale of the company or after a fixed service period.

Telework in Romania must be agreed in writing, either in the employment contract or in an addendum, and an employee cannot be penalised for refusing it. The contract must state that the employee works remotely, the days or periods spent at the employer's premises, how working time is recorded and checked, and each party's responsibilities, including health and safety. The employer must provide the necessary IT and communication equipment, unless the parties agree in writing that the employee uses their own on stated terms.

Employees caring for children under 11 can request 4 days a month of homeworking or telework, and those caring for a disabled child under 18 can request 8 days a month, unless the nature of the work prevents it. Any employee can ask for an individualised schedule with fixed core hours and flexible start and finish times, and the employer must justify any refusal in writing.

Meal vouchers (tichete de masă) are the most widespread extra benefit in Romania. Employers load a set amount onto an electronic card for each day the employee actually works, up to a legal maximum of RON 45 per day, frozen at that level at least until March 2027. The vouchers can be spent at restaurants and at food retailers, including supermarkets, so they work as both a meal and a grocery benefit.

At the maximum value and about 21 working days, a full-time employee receives roughly RON 945 a month. Employers choose the daily amount, often below the cap, and set it in the contract, internal rules or collective agreement. No vouchers are given for days of annual leave, sick leave or business travel with per diems. The employee pays 10% income tax and 10% health contribution on the voucher value, while the employer pays no social contributions on it and can deduct the full cost.

In a 2025 job-board survey, 81.6% of employees reported receiving meal vouchers, and more than nine in ten employers in a 2022–2023 survey of 114 companies offered them.

Hybrid working is the norm for office-based employers in Romania's main business hubs, such as Bucharest, Cluj-Napoca and Timișoara. In a 2026 survey of 101 office-occupying companies, a third of them in IT and communications, 31.3% expected employees in the office one to two days a week and nearly half three to four days, and companies were not returning to five office days. Fully remote roles are less common but remain widespread in software development.

Remote work must be agreed in writing in the contract or an addendum, which states the office days, how working time is recorded and who provides equipment; parents of children under 11 can request 4 telework days a month by law. Employers often pair hybrid work with flexible start and finish times.

Many employers pay for or reimburse employees' travel between home and work, for example public transport passes, a fixed commuting allowance or company transport. These costs are free of income tax when provided under the employment contract or internal rules.

Survey results differ by sample: 67% of 114 employers in a 2022–2023 survey covered commuting costs, while 31.4% of employers in a 2022 job-board survey offered transport reimbursement.

Company cars are mainly provided to sales staff, managers and roles that require travel, while some technology employers pay a monthly fuel allowance to employees who drive rather than use public transport. Private use of a company car is a taxable benefit for the employee unless the employer deducts only 50% of the vehicle costs or operates under the microenterprise tax regime; fuel allowances paid in cash are taxed as salary.

Professional training is offered by a large share of employers: 40% of employers in a 2022 job-board survey provided specialised training, and technology and services companies commonly add personal learning budgets, conference attendance, certifications and language courses. By law, employers must also enrol every employee in professional training at their own cost at least once every two years if they have 21 or more employees, or every three years if smaller.

Work-related training paid by the employer is not a taxable benefit for the employee.

Employers routinely provide the laptop, phone and software employees need for their work, and under the telework law must supply the IT equipment for remote work unless the parties agree in writing that the employee uses their own. Typical one-off equipment costs are estimated at about RON 5,000 to RON 9,000 per office employee, plus RON 1,000 to RON 2,500 a year per software licence. Equipment used for work and work phone subscriptions are not taxable benefits.

Some employers pay teleworking staff a monthly allowance towards electricity, heating, internet and home-office costs, or cover personal mobile phone bills. Since January 2024 such allowances are taxable salary: the former exemption of up to RON 400 a month without receipts was repealed. Reimbursement of documented work-related costs and employer-paid work phone subscriptions remain tax-free.

In a late-2024 survey of 204 business leaders, 14% said they would offer a home-office expense benefit, which indicates limited take-up.

Employers hiring from abroad or moving staff within Romania may pay relocation costs, temporary accommodation, visa and immigration fees, language training and, for senior expatriates, housing and school support. Relocation costs paid in the employer's interest and a one-off installation allowance of up to one month's base salary for a graduate's first job in another town are tax-free; housing and school fees for expatriates are generally taxable salary, apart from employer accommodation of up to 20% of the minimum wage a month within the 33% tax-free benefits limit.

Romanian tax law treats a person as independent only if their activity meets at least four of seven criteria: freedom to choose where, how and when to work; freedom to work for several clients; bearing the business risk; using their own assets; relying on their own intellectual or physical effort; membership of a professional body where one exists; and freedom to work directly, with staff or through others.

If an arrangement fails the test, the tax authority can reclassify the income as salary and assess income tax and social contributions retroactively, with interest and penalties, and the Labour Inspectorate can treat undeclared employment as a serious breach. Independent contractors have no Labour Code rights to paid leave, overtime pay, notice or dismissal protection; their terms come from their contract.

Every employer must keep a general register of employees and submit it to the Labour Inspectorate through Reges-Online, the electronic employment register that fully replaced the former Revisal system from 1 January 2026. A new contract must be registered no later than the day before the employee starts work, and changes such as salary, position, suspension and termination must be reported as well.

The register records each employee's identity, start date, occupation code, education, contract type, salary and allowances, suspensions and termination. Employees can view and download their own record online. Failing to register an employee or to report on time can lead to fines of RON 15,000 to RON 20,000.

An individual employment contract must be in writing and in Romanian, and signed no later than the day before work starts; a copy must be given to the employee before they begin. With a foreign employee it must also be drawn up in their own language or an international language they understand. Electronic signatures are allowed. Before signing, the employer must inform the candidate of the essential terms, including the workplace, job and duties, start date, duration, annual leave, notice, base salary and pay date, working hours, overtime rules, any probation period and the applicable collective agreement.

Contracts are open-ended by default. Fixed-term contracts are allowed only in cases listed by law, for up to 36 months, with no more than three successive contracts between the same parties. Changes require a signed addendum, except limited unilateral changes such as temporary delegation or secondment. The minimum working age is 16, or 15 with parental consent for suitable work.

Employers must not discriminate in pay or other conditions on grounds such as sex, sexual orientation, age, ethnicity, religion, disability, family responsibilities or trade union membership, and must pay equal pay for work of equal value. Under Law 361/2022, private employers with 50 or more employees must set up internal channels for reporting breaches of law, and retaliation against whistleblowers is prohibited. Personal data of staff is processed under the EU General Data Protection Regulation.

A non-compete clause applies only after employment ends and is valid only if the contract specifies the prohibited activities, the territory, the companies concerned, the period and a monthly non-compete payment of at least 50% of the employee's average gross earnings over the previous 6 months. It can last no longer than 2 years after termination and does not apply when the employer dismisses for reasons unrelated to the employee.

Salary must be paid in money at least once a month, in Romanian lei, on the date set in the employment contract, collective agreement or internal regulations; most employers pay monthly at the end of the month or by the middle of the following month, and some pay an advance mid-month. Payment can be made by bank transfer, and payment in kind for part of the salary is allowed only where the contract or collective agreement expressly provides it.

Unjustified late payment or non-payment can make the employer liable for damages. Payroll records must be kept like accounting documents, and the employer files the monthly payroll and contributions declaration with the tax authority by the 25th of the following month.

Employers in construction, covering building, civil engineering and specialised construction work, must pay a gross minimum base salary of at least RON 4,582 a month for full-time work, a sector-specific minimum set by Government Emergency Ordinance 156/2024 and applicable since 1 January 2025. It sits above the national minimum of RON 4,325.

The former income tax and contribution relief for construction, agriculture and food-industry employees ended on 1 January 2025, so these sectors now pay standard tax and contributions. A separate agriculture and food-industry minimum was set equal to the January 2025 national minimum; it cannot be lower than the national minimum now in force.

The gross national minimum wage for full-time work is RON 4,325 a month from 1 July 2026, set by Government Decision 146/2026, up from RON 4,050 for January to June 2026. Based on an average of 166.667 working hours a month, the hourly minimum is RON 25.949, and it is pro-rated for part-time work.

No contract or collective agreement can set a lower base salary. An employee can be paid the minimum wage for at most 24 months from the start of the contract; after that, the employer must pay a higher base salary. The minimum wage is normally reviewed each January, and many social thresholds, such as contractors' contribution bases, are calculated from it.

The normal working time is 8 hours a day and 40 hours a week. Total working time, including overtime, cannot exceed 48 hours a week on average, calculated over a reference period of 4 months, which collective agreements can extend up to 12 months. Overtime requires the employee's agreement, except in emergencies.

Overtime is compensated first with paid time off within the next 90 calendar days. If that is not possible, the employer pays a premium in the following month, set by collective agreement or contract, of at least 75% of base salary for the hours worked. Work between 22:00 and 06:00 is night work: night workers get either one hour less work per day without loss of pay or a premium of 25% of base salary.

Employees are entitled to at least 12 consecutive hours of rest between two working days and to 48 consecutive hours of weekly rest, normally Saturday and Sunday. Workers under 18 may work at most 6 hours a day and 30 hours a week and cannot work overtime. Employers must keep daily records of start and finish times.

A probation period is optional and must be written into the contract. For open-ended contracts it can last up to 90 calendar days for ordinary roles and up to 120 calendar days for management roles; for employees with disabilities, ability is assessed only through a probation period of up to 30 calendar days. For fixed-term contracts the maximum is 5 working days for contracts under 3 months, 15 working days for 3 to 6 months, 30 working days for more than 6 months and 45 working days for management roles on contracts of more than 6 months.

During or at the end of probation, either party can end the contract by written notice, without a notice period and without giving reasons. Only one probation period is allowed per contract, unless the employee moves to a new role or to hazardous conditions, and no new probation can be set if the same parties sign a contract for the same job within 12 months. Probation counts as length of service and the employee has full employment rights during it.

There is no at-will dismissal in Romania. An employer can dismiss only on grounds set by law: serious or repeated misconduct after a disciplinary investigation, pre-trial arrest for more than 30 days, medical unfitness, professional inadequacy, or the genuine and serious elimination of the job. The dismissal decision must be written and state the reasons, the notice period and any vacancies offered; a dismissal that breaks the procedure is void and the employee can be reinstated with back pay.

Employees dismissed for medical unfitness, professional inadequacy or redundancy receive at least 20 working days' notice; none is due for disciplinary dismissal or during probation. Before dismissing for unfitness or inadequacy the employer must offer suitable vacancies. An employee who resigns gives the notice agreed in the contract, at most 20 working days for ordinary roles and 45 for management roles, which the employer can waive; no notice is needed if the employer breaches the contract. Collective dismissals, starting at 10 employees within 30 days for employers with 21 to 99 staff, require consultation and notification of the authorities.

Dismissal is prohibited during sick leave, maternity, child-raising, sick-child, paternity, carer's and annual leave, and during pregnancy known to the employer. On termination the employer pays outstanding salary and cash for unused annual leave.

For most office and technology roles, the employer's only mandatory payroll contribution is the employment insurance contribution (CAM) of 2.25% of gross salary, with no cap. CAM funds work-accident insurance, sick pay, unemployment benefits and the wage guarantee fund, so no separate employer charges for these exist. Employers add a pension contribution of 4% for work in difficult conditions or 8% for special conditions, as classified under pension law.

The employer also withholds the employee's social insurance contribution (25%), health contribution (10%) and income tax and pays them with CAM through the monthly payroll declaration, filed with the National Agency for Fiscal Administration (ANAF), the tax authority, by the 25th of the following month. Mandatory pre-employment and annual medical checks and safety training are further employer costs. For a gross salary of RON 6,000, CAM adds RON 135, for a total employer cost of about RON 6,135.

Salary income is taxed at a flat 10%, withheld monthly by the employer. Tax is calculated on gross salary after deducting the employee's social insurance (25%) and health (10%) contributions, any personal deduction, union dues, and the employee's own contributions to voluntary pensions and health insurance up to EUR 400 a year each and sport subscriptions up to EUR 100 a year.

The basic personal deduction applies only at the main workplace and only to gross monthly salaries up to RON 2,000 above the minimum wage. It ranges from 20% of the minimum wage for an employee without dependants earning the minimum wage, and up to 45% with four or more dependants, tapering to zero at the top of the band. Additional deductions are 15% of the minimum wage for employees under 26 in the same income band, and RON 100 a month for each child under 18 enrolled in school, whatever the parent's income. Employees with a severe or pronounced disability are exempt from income tax on salary.

Throughout 2026, part of the pay of full-time employees earning the national minimum wage is free of income tax and social contributions: RON 300 a month from January to June 2026 and RON 200 a month from July to December 2026. The relief applies when the base salary equals the minimum wage, without other additions, and gross monthly salary income, excluding meal vouchers, holiday vouchers and food allowances, does not exceed RON 4,300 in the first half of the year or RON 4,600 in the second.

The relief is pro-rated for part months and is lost if the base salary is cut below the minimum. It was introduced by Government Emergency Ordinance 89/2025 and is scheduled to end on 31 December 2026.

Romania abolished the income tax exemption for software developers and other IT employees, and the tax and contribution relief for construction, agriculture and food-industry employees, from 1 January 2025 under Government Emergency Ordinance 156/2024. Employees in these sectors now pay the standard 10% income tax, 25% social insurance contribution and 10% health contribution on all salary income.

The remaining salary income tax exemptions cover employees with a severe or pronounced disability and staff working on qualifying research and development projects, within the project's payroll budget.

Most benefits in cash or in kind are taxed as salary. The main exceptions are capped. Gifts to employees and their minor children, including gift vouchers, are free of tax and contributions up to RON 300 per person per occasion at Easter, Christmas and similar religious holidays, on 8 March for female employees and on 1 June for children. Work-related training, work phones, transport to and from work under the contract or internal rules, relocation costs in the employer's interest and certain hardship grants, such as birth, funeral and serious-illness assistance, are also tax-free.

A second group is tax-free only up to a combined monthly limit of 33% of the employee's base salary, with the employer choosing the order in which items count: employer contributions to voluntary pensions (up to EUR 400 a year), voluntary health insurance and medical subscriptions (EUR 400 a year), sport subscriptions (EUR 100 a year), childcare in early-education settings (RON 1,500 a month per child), employer-provided accommodation (20% of the minimum wage a month), holiday and treatment services (up to one average gross salary a year) and employer-provided meals for staff without meal vouchers. Amounts above any limit are taxed as salary. The former RON 400 monthly tax-free telework allowance was repealed from January 2024.

Meal vouchers, holiday vouchers, nursery vouchers and cultural vouchers issued under the voucher law are taxable income for the employee: they bear 10% income tax and 10% social health insurance contribution (CASS), but no social insurance contribution (CAS) or employer employment insurance contribution. They sit outside the 33% tax-free benefits limit and are fully deductible for the employer.

The maximum face value of a meal voucher is RON 45 per day worked, frozen at least until March 2027, and vouchers are issued electronically and are not given for days of annual leave, sick leave or business travel with per diems. The monthly nursery voucher for employees who are not on child-raising leave is worth RON 770 from October 2026.

Collective bargaining at company level is mandatory for employers with 10 or more employees, although the law does not oblige the parties to reach agreement. Collective agreements can be concluded at company, group and sector level; sector and higher-level agreements are published by the Ministry of Labour and apply to the employers they cover. A signed collective agreement is binding on the parties.

Collective agreements and, failing them, internal regulations set many terms the Labour Code leaves open: paid days off for family events, unpaid leave, extra annual leave, overtime and weekend premiums above the legal minimum, and severance. They cannot provide less than the law.

Citizens of EU member states, the European Economic Area (EEA) and Switzerland can work in Romania without a work permit; if they stay longer than three months they must obtain a registration certificate from the immigration authority. Most other foreign nationals need work authorisation, a long-stay employment visa and then a single residence and work permit. Highly qualified workers can apply for an EU Blue Card.

Since Government Emergency Ordinance 32/2026, published in April 2026, employers must register or be authorised on the WorkinRomania.gov.ro digital platform before hiring non-EU workers. For many categories, hiring is allowed only for occupations on the national shortage list and within an annual quota. Contracts with foreign employees must be bilingual, and the medical fitness certificate can be presented by the first day of work.