EOR Service in Romania

Shraddha Saxena

Hire, Onboard and Pay Employees in Romania Quickly and Efficiently

Hiring in Romania at a glance

CURRENCY
Romanian Leu (RON)
working hours
48 hours / week
public/bank holidays
15
capital
Bucharest
language
Romanian
date format
DD/MM/YYYY
remote workers
1.2M
tax year
Jan 1 to Dec 31
minimum hourly salary
No minimum wage
CURRENCY
Romanian Leu (RON)
public/bank holidays
15
capital
Bucharest
language
Romanian
date format
DD/MM/YYYY
tax year
Jan 1 to Dec 31
payroll frequency
Monthly
GDP
$301.26B (2021)
working hours
48 hours / week

Employer of Record in Romania

When expanding your business into Romania, consider partnering with an Employer of Record (EOR). A Romanian EOR takes on all employment-related responsibilities, ensuring compliance with local labor laws. This includes managing payroll and tax obligations, allowing your company to maintain operational control while offloading administrative tasks.


Why use Romania EOR?


While the opportunity to tap into Romania's talent pool is enticing, it's essential for companies to navigate the local rules and labor codes when hiring employees. This is where a Romania Employer of Record (EOR) or Professional Employer Organization (PEO) can be invaluable.


Many of Romania’s labor laws are different from those in the USA, UK, Singapore, etc. For example, mothers can take maternity leave for a total of 126 days. In comparison, countries like the US, mention no laws offering mandatory  federal paid maternity/paternity. Secondly, trade unions play a significant role, and collective bargaining agreements at sectoral levels can set standards for working conditions. While trade unions are influential in many European countries, their power and reach in countries like the US, India, Singapore have diminished over time.


Partnering with a Romania EOR/PEO like Gloroots simplifies the process of onboarding local talent. By having a trusted partner manage payroll, taxes, and compliance with local employment regulations, companies can ensure smooth and hassle-free operations in Romania.

EOR Costs in Romania

The cost of Romania EOR/PEO services varies based on factors like employee count, service scope, and project complexity. Typically, it involves a monthly fee per employee or a percentage of their salary. Additional charges may apply for extra services or customization. For detailed pricing information, please visit our website.

Key Metrics For Foreign Employers 

Romania is a popular choice for international employers due to its low taxes and skilled workforce. Its strategic location connects Europe and the Middle East, making it great for importing and exporting. Corporate taxes are among Europe's lowest, and payroll tax obligations for employers are minimal. Romania's EU and NATO memberships offer advantages like lower trade costs and access to vast markets. The government has simplified labor laws to attract more businesses, but it's essential for employers to understand these regulations before starting operations in Romania.

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Romania.

Factors Global Ranking Interpretation
Rule of law 47 Indicates effectiveness of law enforcement
Labour-employer cooperation 108 Indicates positive labor-employee relationships
Reading Maths, and Science 48 Indicates average scores in OECD's survey of 15-year old students
University Ranking 72 Indicates average QS rankings
Labour productivity per employee 37 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 114 Indicates findability of skilled talent
Workforce with tertiary education 67 Indicates % of workforce with PG degrees
Digital Skills 69 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Romania.


Why work in Romania ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

Imagine you're an employer in Romania, and you have workers. Sometimes, employers make a mistake by not correctly deciding if a worker is an employee or something else like a freelancer. This is called "misclassification."

When you misclassify, you might not give your workers the right benefits or protections they should have. It can create legal problems.

But here's the good news: If you work with a PEO/EOR in Romania, they can help you get this right. They'll make sure you follow the rules, classify your workers correctly, pay them accurately, and give them the benefits they should have. This way, you can focus on your business, and they'll handle the employment stuff.


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Avoid hefty penalties with Gloroots.

Use our free employee misclassification risk calculator to estimate your risk level.

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Employing in Romania

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Tax and Social Security contribution:

Payroll Tax Contributor Rate
Unemployment insurance Employer 2.25%
Social Security (pension) contribution 4.00%
Total Employment Cost 6.25%
Pension Employee 25.00%
Health insurance 10.00%
Total Employment Cost 35.00%

Employee Income tax

Income range Rate
0-5000 RON monthly 0%
above 5,000 RON per month 10%

Separation

Termination 

The process of ending employment differs depends on: 

  • the type of contract
  • the reason for termination; and 
  • the terms specified in the employment and collective agreements

Individual employment contracts can be terminated in several ways:

  • According to legal regulations
  • With the agreement of both parties
  • In accordance with the terms and conditions outlined in the law

Employers can terminate employment contracts for reasons related to the employee (like disciplinary actions due to professional inadequacy) or reasons not linked to the employee (such as job elimination).

Severance Pay

Romania does not have a legally mandated severance pay requirement unless it has been specified in a collective agreement.

Notice Period

In the event of an employee being dismissed, the notice period in Romania is a minimum of 20 working days, and this applies to all positions, regardless of the type of employment contract.

Employees also have the option to terminate their employment by resigning, provided they give advance notice. For non-management positions, the notice period is a maximum of 20 business days, while for management positions, it is 45 business days.

Probation period

The length of the probationary period in Romania is determined by the specific role and is specified in the employment contract. Typically, probation periods last for 90 calendar days but can extend to 120 calendar days for employees in managerial or supervisory positions.

Start Hiring in Romania today

Expanding globally involves complex compliance challenges. Gloroots simplifies this for you. Our experts handle cross-border employment and payroll compliance, from contracts to payments, so you can focus on talent screening. Enjoy a stress-free global hiring experience for both you and your employees. Contact our experts to kickstart your global hiring campaign in Romania today.

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

Grow your team in Romania

Expanding your team involves recruiting the right talent at the right time and for the right roles. In Romania, achieving this requires setting up a local entity to handle compliance, payroll, taxes, and benefits management, which can be complex due to intricate employment regulations.

That's where Gloroots's global Employer of Record (EoR) service comes in. With Gloroots, you can delegate the heavy lifting of payroll, tax, benefits, and compliance, allowing you to prioritize what matters most to you: your employees and your company's growth.

Are you Ready to
Experience Seamless Hiring in Romania ?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Romania .

Speak to our Expert