Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
Romania has two minimum gross wages guaranteed in payment (both excluding bonuses and other additions):
- RON 2,230 for a work schedule of 8 hours per day, from Monday to Friday (full time employees).
- RON 2,350 for a work schedule of 8 hours per day, from Monday to Friday, for the employees assigned in positions for which higher education studies are required and have at least one year of seniority in the higher education area
The minimum gross wage is amended yearly under the conditions of law.
The payroll cycle in Romania is monthly with the payment date stipulated in the individual employment contract
A full workweek in Romania is 8 hours a day and 40 hours a week. For employees under the age of 18, work is limited to 6 hours a day or 30 hours a week.
The Employer has the obligation to keep a record of the daily work hours performed by each employee, highlighting the start and end hour of the working program, and shall present such records to the labor inspection control when required.
Employees are allowed to work a maximum of 48 hours per week including overtime. After working a 12 hour day, employers must give a 24 hours rest period. Work performed outside the standard 8 hours per day, 40 hours per week must be compensated with paid hours off during the 60 calendar days after the overtime has been performed. If the compensation with paid time off is not possible, the overtime shall be paid to the employee by adding a benefit that must not be lower than 75% of the basic wage, pro-rated to the overtime performed.
Workers under 18 years of age, part-time employees, pregnant employees who are unable to work normal working hours for health reasons are not permitted to work overtime.
20 days is the minimum holiday guaranteed by law per year, pro-rated with the worked period. The vacation days must be taken within the work year. If the employee for justified reasons cannot take all or part of the annual leave in that calendar year the Employer is obliged to grant the annual leave not taken, within a period of 18 months from the year following the one when the entitlement to vacation leave arose.
There are 15 public holidays.
Sick leave is paid only if the employee has a minimum contributory period to the Health House for the prior six months, based on a medical certificate issued by a physician.
The employee must inform the employer of his condition within 24 hours from the moment the medical certificate was issued. If the sickness occurred on the non-working days, the employee must announce the Employer about his condition on the first working day.
The first 5 calendar days are paid by the Employer. From the 6th day, the medical allowance is supported by the National Health Fund. In practice, the Employer is paying also the amount supported by the National Health Fund and then requests the reimbursement of the amount from the Health House.
The payment percentage in case of the sick leave allowance is ranging between 75% and 100% of the calculation base (average of the employees’ monthly gross wages during his last 6 months prior to the month the medical leave is granted).
The maternity leave is 126 calendar days (usually 63 days before + 63 days after the birth of the child). It represents 85% of the calculation base (average of the employee’s monthly gross wages during her last 6 months prior to the month the maternity leave started). The maternity leave is granted based on the medical certificate issued by the physician.
The maternity allowance is granted by the National Health Fund (in practice the Employer pays the maternity leave and afterward he requests the reimbursement of the amount from the Health House).
Fathers are entitled to 5 days of paid paternity leave and can be used until the child reaches the age of 8 weeks. If the father chooses to participate in childcare courses, leave can be extended for an additional 10 days. This extension can only be used once and on the birth of the first child.
Parental leave entitlement last until the child is 2 years old. In the case of a disabled child, leave is until the child is 3 years of age. The payment is made directly by the state institution and represents 85% of the employee’s average revenues during his last 12 months of activity. During this period, the employment contract is suspended.
BereavementlLeave: 2 days of unpaid leave is granted to an employee who has had a death within their immediate family.
Marriage leave: 5 days for an employee’s marriage and 2 days for the marriage of a child.
The termination types are:
- Based on the parties’ consent, on the date agreed upon by them
- As a result of one of the parties’ unilateral will, in the cases and under the limitation terms stipulated by the law (resignation, dismissal, etc).
A written decision of the Employer is always required, except for terminations during the trial period. During the trial period, the employment contract may end based on the termination letter of either party (the Employer or the employee) and no notice period is required.
Notice period in case of dismissal is a minimum of 20 working days for all types of job titles, regardless of the employment contract is concluded for a limited or unlimited duration.
- Notice period in case of resignation for non-management positions: no more than 20 working days.
- The notice period for management positions: no more than 45 working days.
There is no statutory severance pay in Romania unless conditions have been set in a collective agreement.
Labor agreements in Romania must be set up for an indefinite period (i.e. as permanent contracts).
The probation period when having an employment contract for an indefinite period cannot exceed:
- 30 calendar days for disable persons
- 90 calendar days for operational positions
- 120 calendar days for management positions.
Fixed-term employment agreements can be used as exceptions, which are defined in the law: replacement of an employee whose labor agreement is suspended, temporary modification of the Employer’s activity, the progression of some seasonable activities, the employee meets retirement conditions within 5 years from the date of employment.
The probation period in case of a fix term employment agreement cannot exceed:
- 5 working days, for a fixed-term employment contract concluded for a period that does not exceed 3 months
- 15 working days, for an employment contract, concluded for a fixed-term period ranging between 3 and 6 months
- 30 working days, for an employment contract, concluded for a fixed-term period exceeding 6 months
- 45 working days, in the case of management positions, for which the fixed-term employment contract is concluded for more than 6 months.
VAT is 19% standard rate.