Payroll Information

Payroll Cycle

The payroll cycle in Romania is usually monthly, with payments made on or before the 25th day of the following month. Employers are required to withhold various taxes and contributions from employees' salaries, including income tax, social security contributions, health insurance contributions, and unemployment insurance contributions.

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Employment Law

Employment in Romania is governed by the Labor Code, which sets out the rights and obligations of both employers and employees. Some key aspects of employment law in Romania include the maximum working week of 48 hours, the minimum wage, and the right to annual leave. Employers are also required to provide employees with certain benefits, such as sick leave, maternity leave, and paternity leave.

Employers in Romania must comply with a range of regulations and requirements when it comes to payroll and employment law. It is important to stay up-to-date with changes in legislation and work with a knowledgeable payroll provider or HR consultant to ensure compliance.

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Employment Contract

In Romania, employment contracts can be either fixed-term or indefinite, and must include certain information such as the employee's position, job description, and salary. The contract must also specify the start and end date (if fixed-term), as well as the notice period for termination of the contract. It is also common for contracts to include information on other benefits and allowances, such as bonuses or meal vouchers.

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Probation Period / Trial Period

In Romania, the maximum probationary period is 90 days for a fixed-term contract and 120 days for an indefinite contract. During this time, either the employer or employee can terminate the contract without notice or compensation.

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Working Hours

The standard working week in Romania is 40 hours, with a maximum of 8 hours per day. Overtime is limited to 200 hours per year and must be compensated at a higher rate than regular work hours.

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Overtime

Overtime must be voluntary and compensated at a rate of at least 75% above the regular hourly rate. In some cases, employees may be entitled to additional time off in lieu of overtime pay.

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Bonus

Bonuses are not mandatory in Romania, but they are often offered as a form of incentive or reward. Employers are free to set their own bonus policies and amounts, but they must be consistent and non-discriminatory.

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Termination

Terminating an employment contract in Romania can be done by mutual agreement, resignation, or dismissal. Dismissals can be either for cause (with no notice or compensation) or without cause (with notice or compensation).

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Notice Period

The notice period for an indefinite employment contract in Romania is generally 20 working days, although this can vary depending on the employee's seniority and length of service. For fixed-term contracts, the notice period is generally equal to the remaining duration of the contract.

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Redundancy / Severance Pay

Redundancy can occur in Romania for economic reasons, technological reasons, or organizational reasons. Employers are required to follow specific procedures and provide notice and compensation to affected employees.

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Maternity Leave

Female employees in Romania are entitled to 126 days of maternity leave, which must be taken before and after the birth of the child. During this time, the employee is entitled to a monthly allowance from the state, which is based on their average monthly salary.

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Paternity Leave

Male employees in Romania are entitled to 5 days of paternity leave, which can be taken within the first 30 days after the birth of the child.

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Parental Leave

Parents in Romania are entitled to a total of 126 days of parental leave, which can be taken by either parent until the child reaches the age of 2. During this time, the parent is entitled to a monthly allowance from the state, which is based on their average monthly salary.

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Vacation and Annual Leave (paid time off)

Employees in Romania are entitled to at least 20 days of annual leave, although this can increase based on their seniority and length of service. Employers are required to provide at least 2 weeks of continuous leave during the summer period (July 1 - September 15).

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Sick Leave

Employees in Romania are entitled to sick leave if they are unable to work due to illness or injury. The duration of sick leave can vary depending on the severity of the illness or injury, and employees may be entitled to a sick pay benefit from their employer.

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Other Leave

Other types of leave that may be available to employees in Romania include study leave, unpaid leave, and leave for personal reasons. The terms and conditions of these types of leave can vary depending on the employer's policies.

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Other Benefits

Employers in Romania may offer a range of other benefits to employees, including meal vouchers, health insurance, and retirement savings plans.

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Holiday

There are 13 public holidays in Romania, including New Year's Day, Easter, Christmas, and various other religious and cultural holidays.

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Taxation

It is important for employers to ensure that they are in compliance with all taxation and social security regulations in Romania. Employers may also want to consider working with a knowledgeable tax or payroll provider to ensure that they are meeting all of their tax obligations and minimizing their tax liabilities. Additionally, employees should be aware of their tax obligations and rights in order to ensure that they are not overpaying or underpaying their taxes.

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Personal Income Tax

In Romania, the personal income tax rate is a flat rate of 10% for all income levels. This tax is levied on all income earned by residents of Romania, including wages, salaries, and self-employment income. Non-residents are subject to a withholding tax of 16% on their Romanian-sourced income.

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Social Security

In Romania, employers and employees are both required to contribute to the social security system. The current rate for social security contributions is 25% of an employee's gross salary, with the employer responsible for 18.5% and the employee responsible for 6.5%. The social security system in Romania provides benefits such as health insurance, disability insurance, and pensions.

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Visas and Foreign Workers

General Information

Types of work visas

There are several types of work visas available in Romania, including the short-term visa (valid for up to 90 days), the long-term visa (valid for up to 1 year), and the residence permit (valid for up to 5 years).

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Eligibility criteria

In order to obtain a work visa in Romania, applicants must have a job offer from a Romanian employer, a valid work permit, and a clean criminal record. The employer must also prove that they were unable to find a suitable candidate from within the EU before offering the job to a non-EU national.

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Application process

The application process for a work visa in Romania typically involves submitting a variety of documents to the Romanian embassy or consulate in the applicant's home country, including a valid passport, a work contract, a valid work permit, and proof of accommodation in Romania. In some cases, applicants may also need to undergo a medical examination.

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Processing time

The processing time for a work visa in Romania can vary depending on a number of factors, including the type of visa, the location of the embassy or consulate, and the complexity of the application. In general, it is recommended to allow several weeks for the application to be processed.

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Renewal and extension

Work visas and residence permits in Romania can be renewed or extended, although this process may require additional documentation and fees. It is important to begin the renewal or extension process well in advance of the visa or permit expiration date.

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Other considerations

Non-EU nationals who plan to work in Romania may also need to obtain additional permits or registrations, such as a tax identification number or a residence registration certificate. It is important to research all of the necessary requirements and seek guidance from a knowledgeable immigration professional.

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Overall, obtaining a work visa in Romania can be a complex process, but with careful preparation and attention to detail, it is possible to successfully navigate the requirements and obtain a visa or permit that allows for legal employment in Romania.

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