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

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.

Mandatory Benefits

Pension Fund

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

Minimum Wage

General The minimum wage is 446 EUR per month.

VAT

General VAT is 19% standard rate.