What do you need to know to hire in Romania?

Romania's CAM (Contributia Asiguratorie pentru Munca) is just 2.25%. That is the only mandatory employer social contribution for standard working conditions. Employees pay 35% on their side in pension (CAS) and health insurance (CASS) contributions. The total cost of a Romanian hire is substantially lower than comparable roles in Poland, Germany, or the Netherlands.

Payroll filings and tax payments are due by the 25 daysth of the month following payment. Teamed's Romania fee is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, and contributions passed through at cost on every invoice.

The full breakdown, with worked examples at current statutory rates, is in the cost guide.

Setting up a Romanian SRL (Societate cu Raspundere Limitata) requires registration with the Trade Registry, a minimum share capital, a local registered address, and ongoing accounting and statutory filings. An Employer of Record is faster and cheaper at low headcount. Teamed runs Romanian payroll, contracts, and compliance from day one.

The crossover point depends on Romanian salary levels and your local accounting costs. For most tech roles it lands around 5 to 8 employees. The EOR vs entity guide runs those numbers.

Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own Romanian entity on one platform under Teamed's Graduation Model, with tenure preserved.

The August 2025 reform introduced a tiered sick leave indemnity system. Short absences of up to 7 days are paid at 55% of average gross income. Absences of 8 to 14 days rise to 65%, and absences of 15 days or more are paid at 75%. The employer pays for the first 5 days of sick leave before the national health fund (CNAS) takes over.

Probation for non-management roles is capped at 3 months. During probation, either party can end the contract with a written notice. After probation, all dismissals must follow the Labour Code procedure and be based on lawful grounds. The hiring guide covers day-one obligations and the probation rules in detail.

Annual leave is 20 days working days per year under the Labour Code. This is separate from public holidays. Romania observes a significant number of public holidays, among the highest in the EU, though sources vary by one or two days depending on how Women's Day is counted for a given workforce.

Maternity leave is 126 days in total, split flexibly between pre and postnatal periods, paid at 85% of average gross income. Paternity leave is 10 days working days taken within 8 weeks of birth, paid in full by the employer. Either parent can then take up to 24 months of paid parental leave, funded by the state at 85% of average income up to a monthly cap. The benefits guide covers each entitlement and the employer obligations in full.

Romania's payroll structure is unusual by European standards. The employer pays only CAM at 2.25%. All major social contributions sit on the employee side: CAS pension at 25% and CASS health insurance at 10%. Income tax is a flat 10% on all employment income with no progressive brackets on wages. There is no personal allowance on employment income.

Payroll withholding declarations and payments are due by the 25 daysth of the month following payment. Teamed handles all withholding, declarations, and remittances, with every contribution itemised on your invoice. The tax and payroll guide sets out every rate and deadline.

Romanian notice runs in working days, not calendar days, and cannot be paid out in lieu. The 20 days working-day minimum applies to dismissals on grounds of incapacity, professional inadequacy, or redundancy (individual or collective). Management roles may have up to 45 days working days by contract or collective agreement. Disciplinary dismissals do not carry a notice period.

There is no general statutory severance triggered by dismissal. Employees are protected against wrongful dismissal from the first day of work. A dismissed employee can challenge the decision in court. Collective redundancy rules apply when more than 10 employees are dismissed within a 30 days-day window, requiring 30 days days of advance notification to the ITM and consultation with employee representatives. The termination guide covers every route in full.

Romania flips the social contribution model. Employers pay CAM at 2.25%. Employees pay 35% on their own gross pay. US buyers used to seeing high employer costs in Germany or France are often surprised by how low the Romanian employer cost line is. Brief your finance team on the structure before they build the model.

The July 2026 minimum wage step affects live contracts. The general minimum rises from lei 4,050/month to lei 4,325/month on 1 July 2026. Employers cannot keep a Romanian employee on the statutory minimum for more than 24 consecutive months without a salary review. The construction sector minimum is higher and fixed throughout 2026. The hiring guide covers how to structure contracts so the July step does not trigger a compliance gap.