Overview

Capital
Bucharest
Currency
Romanian Leu

Taxes

Employer
4% - 8% - Social Security - dependent on working conditions
2.25% - Labor Insurance
16% - Income Tax
Employee
25% - Social Security
10% - Health Insurance
10% - Income Tax

Minimum Wage

General
The minimum wage is 446 EUR per month.

VAT

General
VAT is 19% standard rate.

Mandatory Benefits

Pension Fund
The employer contributes a mandatory 2.25% with an additional 4% - 8% depending on work conditions.
The employee contributes 35%.

Termination

Termination Process
Employer is required by law to provide a notice of 20 working days. However it is common practice to give employee loner notices.
Advance Notice
The employee must provide a written notice of 20 days if they hold a non-managerial position and 45 days if they have a senior/managerial position. An employee can terminate employment without a notice if the employer failed to meet the requirements set in the employment agreement.
Severance Pay
Based on Romanian Labor Code. employees are not entitled to severance payments, unless specifically agreed in the employment agreement.