How much does it really cost to hire in Romania in 2026?

Romania's employer cost structure is one of the simplest in Central and Eastern Europe. One employer contribution rate, one flat income tax rate, one payroll deadline. The illustrative example below uses RON 8,000 gross per month, a typical reference point for professional roles in Bucharest and Cluj.

These figures are illustrative. They are computed from the 2.25% statutory CAM rate confirmed for 2026. They are not statutory figures and will vary with actual salary, any benefits provided, and whether special working conditions apply. Add Teamed from $599 per employee per month and the all-in cost rises to around 112 to 115 percent of gross at a RON 8,000 monthly salary point, depending on the RON to USD exchange rate used. Use the Employer Cost Calculator to run your own salary figures.

1. Start with gross salary

   Confirm the agreed gross monthly salary in RON. Check it is at or above the applicable minimum wage, including the July step-up if the hire starts before July 2026.

2. Add the CAM employer contribution

   Apply the CAM rate to the full gross salary. This is the only mandatory employer social contribution for standard working conditions in Romania.

3. Check for special working conditions

   Confirm whether the role falls under uncommon or special working conditions. If it does, an additional employer pension levy applies on top of CAM. Office and professional services roles are standard.

4. Budget statutory leave and sick pay

   Annual leave is built into the gross salary cost. Allow a small variable reserve for the employer-funded portion of any sick pay certificates, which covers the early days of each absence.

5. Add the Teamed fee

   Add the from $599 per employee per month Teamed fee. Convert using the current exchange rate. This covers payroll, contribution filings, and dedicated expert support from day one.

CAM stands for Contributia Asiguratorie pentru Munca (Labour Insurance Contribution). It funds unemployment benefit and a small portion of the national pension guarantee fund. The 2.25% rate is set by the Romanian Fiscal Code and applies to all gross salary payments for standard working conditions.

Special working conditions add an employer pension levy

For roles classified as uncommon working conditions, the employer also pays an additional 4% employer CAS on top of the standard CAM. For roles classified as special working conditions (certain hazardous or difficult industries), the additional employer CAS is 8%. These categories are set by government decree and apply to specific industry codes and job types. For professional services, technology, and office-based roles, standard conditions apply and the employer contribution remains 2.25%.

What the employee pays

The employee pays CAS at 25% of gross for pension insurance. They also pay CASS at 10% of gross for health insurance. The combined employee contribution is 35% of gross. These are withheld from the employee's gross salary and remitted by the employer. They are not an extra cost on your invoice. They reduce the employee's net pay. When discussing compensation with a candidate, the gross salary is the reference, and the net take-home after these deductions and the flat income tax is what the employee receives.

The 10% flat personal income tax rate is set by Fiscal Code Romania Art. 64. It applies to all employment income from the first leu. There are no different rates for higher earners, no personal allowance, and no year-end reconciliation filing for the employee on employment income.

The simplicity is useful when you are hiring. Candidates in Romania understand the structure. Gross-to-net calculations are straightforward. A RON 8,000 gross monthly salary with no other income produces a predictable take-home once CAS, CASS, and the flat PIT are applied. No one needs a specialist to estimate the net figure.

The combined employee deduction picture

On a RON 8,000 gross salary, the employee sees three deductions withheld before receiving net pay. CAS at 25% covers pension. CASS at 10% covers health. PIT at 10% is applied after the social contributions are deducted. All three are withheld by the employer and remitted to the state by the 25 daysth of the month following payment. None of them are costs on your employer invoice. They come out of the employee's gross, not on top of it.

Minimum wage as the offer floor

The national minimum monthly gross wage is lei 4,050/month for the first half of 2026. It rises to lei 4,325/month from 1 July 2026 under Government Decision HG 146/2026. Any offer below the applicable minimum is not valid. For professional roles, the minimum is well below market rates in Bucharest and Cluj. It sets the reference point for statutory calculations tied to the minimum wage level. The construction sector has its own higher minimum of lei 4,582/month throughout 2026.

Annual leave

The 20 days working day minimum is set by Labour Code Romania Art. 145. It counts in working days, not calendar days. The employer must ensure that at least 10 consecutive days are taken in one block each year. Any unused leave remaining after that block can be carried over for up to 18 months. On termination, any unused leave must be paid out. Public holidays in Romania are counted separately from annual leave. Sources confirm between 15 and 16 public holidays in 2026; the difference turns on whether International Women's Day (8 March) is counted for all employees or only female employees. Budget at least 15 non-working public holidays into your team planning.

Statutory sick pay

Romania changed its sick pay structure from August 2025. The rate now depends on how long the employee is sick. For the first seven days of a sick certificate, the pay rate is 55% of the employee's average gross income over the preceding six months. For 8 to 14 days it rises to 65%. For 15 days or more it reaches 75%. For the first 5 days working days of the certificate, the employer funds the payment. From day six, the CNAS state fund takes over. The first day of an illness absence is unpaid under the current transitional rule, which runs from 1 February 2026 to 31 December 2027. Budget sick pay as a variable cost rather than a fixed monthly line.

Parental leave

Maternity leave runs for 126 days days at 85% of the mother's average gross income. The payment comes from the national health insurance fund. Either parent may also take paid parental childcare leave for up to 24 months until the child turns two. The allowance is 85% of average income over the preceding 12 months, capped at RON 8,500 per month, and is paid from the state budget. Fathers are entitled to 10 days paid paternity leave days after birth, funded by the employer. Plan for absence rather than treating parental leave as a direct payroll cost.

The July 2026 minimum wage step-up

The national minimum wage rises from lei 4,050/month to lei 4,325/month on 1 July 2026 under Government Decision HG 146/2026. If you hire someone at or near the current minimum, their gross salary must increase on that date. Budget the July uplift into your cost model before the hire. For above-minimum salaries, no automatic adjustment applies, but market expectations in Romania often track minimum wage movements.

Employer-funded sick pay days

The first 5 days working days of each illness certificate (excluding the first unpaid day under the current transitional rule) are funded by you as the employer. The sick pay rate depends on duration. For absences of up to seven days, the rate is 55% of the employee's reference income. For longer absences the rate rises. This is not a large cost per incident. For a team of any size, budget it as a small ongoing variable rather than assuming sick leave is fully state-funded from day one.

No statutory severance for most exits

Romania does not have a general statutory severance formula. There is no minimum per-year-of-service payment on redundancy. Severance is owed only where specified in an individual contract, a collective bargaining agreement, or a company policy. This is different from most other EU markets. On one hand, it reduces the exit cost risk. On the other, if your company policy or the employee's contract commits to severance, that obligation is binding. Review the contract before you offer it.

Collective redundancy notification costs

If you ever need to dismiss a larger group of employees, Romania's collective redundancy rules require notification to the local labour inspectorate and employment agency at least 30 days before issuing dismissal decisions. Consultation with employee representatives is mandatory. The cost is in time and process compliance, not in a statutory payment. For a small team, individual redundancy is straightforward. For larger operations, build the notification period into any restructuring timeline.

Real HR and legal experts handle your Romania hires from the first offer letter through every monthly declaration and payslip. An actual person, not a chatbot or a pooled queue. There is no setup fee and no exit fee. Every employer cost passes through at cost, itemised on every invoice. You see the CAM line, the sick pay line, and the salary line separately. Nothing is hidden inside the management fee.

EOR payroll, contractor onboarding, and entity setup all live on one platform. A Romania contractor who converts to payroll keeps their record. That same employee can graduate from EOR to your own Romanian entity without switching systems. EOR is the right structure for a first Romania hire, until it isn't. Teamed does not lock you in. Start from the Romania hiring overview or run the Employer Cost Calculator to see the full picture.