Overview

Capital
Bucharest
Currency
Romanian Leu

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Taxes

Employer
2.25% - Unemployment Insurance
Employee
25% - Social Security
10% - Health Insurance
10% - Income Tax

Minimum Wage

General

The minimum monthly wage in Romania is 2230 RON

VAT

General

VAT is 19% standard rate.

Payment

Payroll Frequency

The payroll cycle in Romania is monthly. 

Payroll

Pay Date

Employees get paid on the 4th of the following month. 

Working Hours

A full work week in Romania is 40 hours or 8 hours a day. For employees under the age of 18, work is limited to 6 hours a day or 30 hours a week.    

Overtime Payment

In Romania, employees are not able to work more than 48 hours a week.  Overtime on a regular workday is paid at a rate of 175% of the regular pay rate.  For work on weekends, overtime is paid at a rate of 200% of the regular pay rate. 

Termination

Termination Process

According to the Romanian labor code, employment termination must be in writing and in Romanian. In addition, the employee must undergo a medical examination.  If this does not happen, the termination will not be valid. 

Advance Notice

Notice period depends on the position.

  • For a management position, notice period is 45 days
  • For an execution position, notice period is 20 days.

For both the employee and employer, notice period is the same length.   

Severance Pay

There is no statutory severance pay in Romania.