Europe · RON

Hire in Romania

Romania — 19 million population, $15,800 GDP per capita. Everything you need to know about employment law, tax, compliance and hiring in Romania.

Capital

Bucharest

Currency

Romanian Leu (RON)

Languages

Romanian

Time zones

UTC+2 (EET) / UTC+3 (EEST)

Hiring overview

Typical time to hire
1-3 weeks for contractor, 3-5 weeks for full-time
Entity requirement
Romanian SRL. Registration at Trade Register (ONRC).
EOR available
Yes — from $399/employee/month through a Corpshore entity
Contractor of record
Yes — from $39/worker/month

Employment law

Standard workweek
40 hours (8 hours/day, 5 days)
Maximum weekly hours
48 hours
Minimum annual leave
20 working days
Public holidays
15 per year
Maternity leave
126 days (63 before + 63 after), paid at 85% of average income
Paternity leave
10 working days (15 if father completes childcare course), fully paid
Notice period
Employee: 20 working days. Employer: 20 working days.
Severance
No statutory severance. Collective agreements or individual contracts may provide it.
Probation
Up to 90 days (120 for management positions)
Overtime rules
75% premium or compensatory time off within 60 days.

Tax overview

Income tax range
10% flat rate
Corporate tax
16% (1% or 3% turnover tax for micro-enterprises)
Social contributions
Employee: 35% (CAS 25% + CASS 10%). Employer: 2.25% (work insurance).
VAT / GST
19% (standard); 9% reduced (food, accommodation); 5% (housing, books)
Tax year
Calendar year
Treaty network
Over 85 tax treaties

Compliance landscape

Worker classification
Labour Code (Codul Muncii) governs. PFA (authorised natural person) regime for contractors. ANAF and labour inspectorate investigate.
Data protection
GDPR directly applicable. ANSPDCP (national authority) enforces.
Right to work
EU nationals: free movement. Non-EU: work permit required. Blue Card available.
Non-compete
Enforceable if: compensated (minimum 50% of gross salary), limited to 2 years, and specific in scope.
Collective bargaining
Social Dialogue Law (2011) governs. Sector-level bargaining weakened after 2011 reforms. Company-level agreements common.

Payment rails

Bank transfer (SEPA)
Wise

SEPA for eurozone transfers. Domestic transfers via TransFonD (RON). Romania is expected to join the eurozone by 2026-2027.

Key considerations for hiring

  • 10% flat income tax is one of the lowest in the EU
  • IT sector employees had a complete income tax exemption (removed in 2024, now subject to standard 10%)
  • Bucharest, Cluj-Napoca, Iasi, and Timisoara are major tech centres
  • Romania has one of the largest IT workforces in Eastern Europe (~200,000 professionals)

Business and cultural context: Romania

Business culture

Mix of Western European professionalism and Eastern European warmth. Younger generation is highly international. English proficiency is strong in IT.

Key industries

IT and software
Automotive manufacturing
Agriculture
Energy
BPO

Talent pool strengths

Software engineering (particularly strong in .NET, Java, C++)
Cybersecurity
Gaming
QA testing
Automotive engineering

Historical context

Romania's IT sector grew from a tradition of strong mathematics education and a communist-era emphasis on technical training. Bucharest's Polytechnic University and Cluj-Napoca's Babes-Bolyai University produce world-class engineers. The country hosts development centres for Microsoft, Oracle, IBM, and dozens of European tech companies.

Ready to hire in Romania?

Use our EOR service from $399/month and we handle employment law, payroll, tax and compliance in Romania for you.

Hire in Romania — employment law, tax, compliance | Corpshore Work